Video from 2006 that details how auctions work. In large part, only the website has changed since then, so all the information is still relevant and useful for understanding.
Duplicating the text from the video:
Hello, I'm Dan Oscarson, Vice President of Marketing at IAAI. We are at one of our auction sites in Arizona. And I will tell you about our company.
History of Insurance Auto Auction
Our company's history begins at the dawn of the automotive industry. As the number of cars increased, so did the number of accidents. Not long ago, such cars were sent to scrapyards.
Today, companies that sell damaged cars, such as IAAI, effectively sell these cars at auctions, reimbursing insurance companies, car rental companies, and charities. Cars are primarily sold to dealers and repair shops.
- · The company started in 1982 and was initially called LA Auto Salvage. With a large number of cars in Southern California, thanks to computerization and the development of new, more efficient remarketing methods, LA Auto Salvage became successful.
- · The company later changed its name to Insurance Auto Auctions and soon became a leader in the new industry of selling salvage cars.
- · Throughout the 80s, the company founders and management successfully developed and expanded the company by acquiring independent salvage car departments.
- · In 1991, the company became a publicly traded company, and increased capital accelerated its growth.
- · In 2005, the company was acquired by a private equity firm.
- · Today, IAAI is a national leader in selling salvage cars. Its headquarters are in Chicago, with auction centers in most states in America.
Preparing Cars
Having learned the company's history, let's take a detailed look at its work in preparing and selling damaged cars.
- When an insurance company determines that a car is seriously damaged, meaning the repair cost exceeds the car's value, they notify us and we send a tow truck to transport the car to the auction center.
- Upon arrival, our staff inspects the car, identifies its VIN, and gathers important information such as mileage and visible damage locations.
- After digital photography of the car, any open areas are covered with film if necessary.
- Then the car is stored until the sale documents are received.
- Our staff provides the necessary documents and prepares the car for sale. These are trained specialists working with the insurance department.
- Once the car is ready for sale, to increase its resale value, the following procedures may be performed: trash removal, vacuuming, and even minor mechanical repairs.
Selling Cars at IAAI Auction
On the day of the sale, cars are sold sequentially, in numerical order.
Cars in working condition are driven out to demonstrate the engine and individual parts to buyers.
Non-working cars are sold in a separate area. Here, buyers can personally inspect these cars and offer their prices. Other buyers can also offer their prices, even without being present at the auction. They use the internet to offer their price before or during the auction. With the I-bid LIVE interactive application, buyers can use any internet connection to participate in auctions alongside buyers present at the auction. Multiple auctions can be tracked from one screen. Thanks to this amazing technology, buyers from all over the country and the world can participate in auctions without the need for personal presence.
Some of the cars being sold are not damaged or only slightly damaged. For example, cars restored after theft. Advertising for such cars is placed in a special section of the website.
The company also has a specialty salvage division. This group specializes in selling heavy equipment: large trucks, boats, and mobile homes. By conducting closed auctions, the company can significantly increase returns on the sale of such vehicles.
IAAI also quickly responds to sudden increases in the number of salvage cars caused by hurricanes or severe weather. In disaster areas, a special emergency response team is organized to immediately collect, store, and sell damaged cars.
CSATODAY - providing information for car suppliers and insurance companies.
Good business practices and individual approach are what have earned us a good reputation among car suppliers and buyers. Our success lies in our employees and our system.
