Copart, Inc. is a leading global provider of online vehicle auction and remarketing services, operating primarily in the United States, the United Kingdom, Canada, Germany, and several other international markets. The company's core business model centers on its proprietary virtual bidding technology (VB3), which facilitates the sale of salvage and clean-title vehicles over the internet. Copart acts as a critical intermediary in the automotive ecosystem, sourcing the vast majority of its vehicles (over 80%) from insurance companies following total-loss settlements. Other sellers include banks, finance companies, fleet operators, and vehicle rental companies. The buyer base is highly fragmented, consisting of licensed vehicle dismantlers, rebuilders, repair licensees, used vehicle dealers, exporters, and the general public.
Copart generates revenue primarily through service fees collected for utilizing its online auction platform, vehicle handling, and transportation services. A smaller portion of revenue is derived from the direct sale of vehicles that the company purchases on its own behalf. The company operates a massive physical footprint, with over 200 facilities and thousands of acres of storage capacity to house and process vehicle inventory before auction. Copart's competitive advantage lies in its extensive logistics network, its established relationships with major insurance carriers, and the liquidity of its global buyer network, which maximizes the recovery value of vehicles for sellers.
