Copart (CPRT)

Copart’s marketplace is built around its virtual bidding technology, including the VB3 auction platform, which allows registered buyers to bid on vehicles remotely. Its buyer base includes vehicle dismantlers, rebuilders, used car dealers, exporters and individual purchasers. Insurance companies are the company’s most important source of supply, as they consign vehicles that have been declared total losses after accidents, natural disasters or theft recoveries. Copart also handles vehicles from banks, charities, dealers, fleet operators and other commercial sellers.

The business model is largely fee based. Copart typically sells vehicles on consignment and earns revenue from sellers and buyers through auction-related fees that vary with the value and nature of the transaction. In addition to running auctions, the company provides services such as towing coordination, vehicle storage, title processing, inspection support and salvage value estimation. Its large network of storage yards is a key part of the model, giving insurers and other sellers a practical way to process high volumes of vehicles.

Copart’s scale, international buyer network and online-first auction system differentiate it from traditional physical auto auctions. The company benefits from long-standing relationships with insurers and from demand for salvage vehicles, parts and repairable cars in both domestic and export markets.