The Expert Podcast

…For those of you in the automotive industry you're going to find that IAA which is an insurance auto auction is something you probably are aware of similar to Copart. They process a lot of vehicles that are insurance claim vehicles. Vehicles where the insurance company paid out a claim maybe a total loss maybe a salvage sometimes parts only. And IAA Is one of the biggest insurance auctions along with Copart. Well what's going on in the news is that Ritchie brothers which is famous for. doing equipment sales like payloaders off-road trucks. maybe even things like tractors. Is taking an ownership stake maybe buying the whole thing for IAA Look. We do a lot of titles for clients of IAA And even Ritchie brothers. So we see both of these companies operate on a regular basis They're both very well-run companies. They're both very efficient, have great management. the footprint of IAA. A little bigger Ritchie brothers is more niche oriented to the construction industry. So. Even though there. Operations and their processes are similar. The assets that they sell are different One is construction. One is motor vehicles in the insurance industry. It's a perfect fit for both companies because their work processes and workflows are very similar They can probably get a lot of economies of scale by combining some of that. And maybe even…combining their low. So if you have imagined a Ritchie brothers location that sells equipment, and now all of a sudden you start to be able to use it as a facility. For insurance. Vehicle disposal. It's kind of a hand in glove fit. At the same token. If you have insurance auto auction. Locations that you can now put some equipment on that may help have a wider variety of buyers. Look at this equipment because look equipment. sales are very difficult to operate because not everybody needs equipment right there. There's only so many buyers for. So if you can get those out closer to more buyers, Using the I a auction footprint. That might be a way to to get higher prices for your inventory. And have more auction fees. The other difference between the two is in most cases, the Ritchie brothers type sale of equipment. Doesn't have titles. A lot of these are non titled assets They're off-road equipment or construction equipment. Where I a has vehicle titles because they're an insurance claim. Parts only title salvage title certificate of destruction Rebuilt title are usually what comes with these. Because it's a motor vehicle it's going to have a documented title where the equipment may not have that