Profile: KAR Auction Services Inc (KAR)
14 Jun 2019
KAR Auction Services, Inc., incorporated on November 9, 2006, is a provider of whole car auction services in North America, and salvage auction services in North America and the United Kingdom. The Company operates through three segments: ADESA, Inc. (ADESA Auctions or ADESA), Insurance Auto Auctions, Inc. (IAA) and Automotive Finance Corporation (AFC). It facilitates a marketplace by providing auction services for sellers of used, or whole car, vehicles and salvage vehicles through its physical auction locations, and multiple Internet venues. It facilitates the sale of used and salvage vehicles. It is engaged in providing ancillary services, including transportation, reconditioning, inspections, marshalling, titling and floorplan financing. It facilitates the transfer of ownership directly from seller to buyer and it does not take title to or ownership of vehicles sold through its auctions. The Company has a North American network of whole car auction locations and salvage auction locations. IAA also includes HBC Vehicle Services Limited, which operates from the locations in the United Kingdom. Its auction locations are primarily standalone facilities dedicated to either whole car or salvage auctions.
The Company's ADESA segment is a provider of whole car auctions and related services to the vehicle remarketing industry in North America. The Company serves its customer base through online auctions and auction facilities that are developed and located to draw professional sellers and buyers together, and allow the buyers to inspect and compare vehicles remotely or in person. Its online service offerings include ADESA.com, LiveBlock and DealerBlock, and allow the Company to offer vehicles for sale from any location. Vehicles available at its auctions include vehicles from institutional customers, such as off-lease vehicles, repossessed vehicles, rental vehicles and other program fleet vehicles that have reached a predetermined age or mileage and have been repurchased by the manufacturers, as well as vehicles from used vehicle dealers turning their inventory. It also provides customized private label selling systems (including buy now functionality, as well as online auctions) for its customers.
The Company's whole car auctions provide a range of services to sellers and buyers, which include auction related services; transportation services; reconditioning services; inspection services provided by AutoVIN, Inc. (AutoVIN), title and repossession administration and remarketing services; vehicle research services provided by AutoNiq, LLC (AutoNiq), and ADESA analytical services. ADESA provides marketing and advertising for the vehicles to be auctioned, dealer registration, storage of consigned and purchased inventory, clearing of funds, arbitration of disputes, auction vehicle registration, condition report processing, post-sale inspections, security for consigned inventory, title processing, sales results reports, pre-sale lineups and auctioning of vehicles by licensed auctioneers. It provides both inbound (pickup) and outbound (delivery) transportation services utilizing its own equipment and personnel, as well as licensed and insured third-party carriers.
The Company's auctions provide detailing, body work, paintless dent repair (PDR), light mechanical work, glass repair, tire and key replacement, and upholstery repair. AutoVIN provides vehicle condition reporting, inventory verification auditing, program compliance auditing and facility inspections. AutoNiq provides dealers real-time vehicle information, such as pricing, history reports and market guides. ADESA Analytical Services provides market analysis to its customers and the media. These services include access to publications and custom analysis of wholesale market trends for ADESA's customers.
As a provider of salvage vehicle auctions and related services, the Company operates as IAA in the United States and Impact Auto Auctions in Canada, and serves its customer base through salvage auction locations throughout North America. The Company facilitates the remarketing of vehicles for a range of sellers, including insurance companies, dealerships, rental car companies, fleet lease companies and charitable organizations. Its auctions provide buyers from around the globe with the salvage vehicles they need to fulfill their scrap demand, replacement part inventory or vehicle rebuild requirements. IAA offers a suite of auction, logistics and vehicle selling services. The services provided by IAA include Live and Live Online Auction Model, Total Loss Solutions, Vehicle Inspection Centers, Transportation and Towing, Remarketing market and Donation market.
The Company offers vehicles simultaneously to live and online buyers in a live auction format utilizing i-Bid LIVE technology. Total Loss Solutions provides insurance companies with outsource solutions for the portion of the claims process prior to total loss determination and assignment to a salvage auction. The Total Loss Solutions suite of products includes vehicle inspection and title procurement services. The Remarketing market focuses on vehicles, rental sellers, fleet and leasing companies, banks and dealer trade-in inventory. The Donation market processes vehicles for a range of charitable organizations across the United States and Canada. IAA online solutions include I-Buy Fast, CSAToday and Automated Salvage Auction Processing (ASAP).
The AFC segment is a provider of floorplan financing to independent used vehicle dealers. AFC provides short-term inventory-secured financing, known as floorplan financing, to independent used vehicle dealers through branches throughout North America. AFC services loan transactions, which include both loans paid off and loans extended, or curtailed. The Company, through Preferred Warranties, Inc., provides new services to independent used vehicle dealers.
The Company competes with Cox Enterprises, Inc., SmartAuction, Copart, Inc. and LKQ Corporation.
KAR Auction Services Inc
13085 Hamilton Crossing Blvd
CARMEL IN 46032-1412