Copart's combination of irreplaceable physical yard infrastructure, insurance industry relationships, and a vehicle salvage market driven by accidents and weather makes it highly resilient to AGI disruption.
Copart is the world's largest online vehicle auction and remarketing company, specializing in the sale of salvage and clean title vehicles. The company provides vehicle sellers (primarily insurance companies) with a full-service platform to process and sell vehicles that have been declared total losses, as well as clean title vehicles. Copart operates primarily through an online auction model (VB3 platform) connecting sellers with a global network of buyers including dismantlers, rebuilders, used car dealers, and exporters. The company owns and operates over 250 locations across 11 countries with approximately 200,000 acres of vehicle storage.
On the seller side, Copart's primary customers are insurance companies (Allstate, State Farm, GEICO, Progressive, etc.) that account for approximately 80% of vehicles consigned. Other sellers include banks/finance companies, charities, fleet operators, and dealers. On the buyer side, customers are vehicle dismantlers, rebuilders, used car dealers, body shops, and international vehicle exporters from 170+ countries.
Copart operates online vehicle auctions for salvage and used vehicles, combining a massive physical yard network (over 250 locations) with an online marketplace. AGI could potentially improve the marketplace matching algorithm, but Copart's value is primarily in its physical infrastructure: towing vehicles, storing them on owned/leased land, managing titles, and facilitating the logistics of vehicle transfer. An AGI could not replace the physical yards, tow trucks, or the regulatory relationships with insurance companies and DMVs. Copart's customers are insurance companies (selling totaled vehicles), used car dealers, dismantlers, rebuilders, and export buyers. Insurance companies are not going away -- vehicles will continue to be damaged in accidents. Dismantlers and rebuilders perform physical work.