Copart: International Import Share & IAA Pricing Gap
International Copart Buyer
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Interview Transcript
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No, I mean if you take 100 cars bought by dealers in Nigeria. How many are purchased locally, and how many are imported internationally?
I would estimate roughly six or seven out of 10 cars are still imported. The majority of used cars are imported.
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And after five years, they become used.
Some companies like GAC allow trade-ins. So when they trade in, they take the used ones and give you new ones. Often, they scrap the trade-ins for parts because it's difficult from a Nigerian perspective. No Nigerian is likely to buy a used Asian vehicle. From experience, those cars don't have good resale value. If I'm going to buy a GAC, I'll buy it brand new, not used. They don't have good resale value because, frankly, the quality doesn't hold up for a second user.
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Out of the six cars imported today, who are the main players?
It's primarily Copart. I can't specify exactly, but out of 10 cars I sell, Copart probably accounts for about six. Savvy buyers often choose Copart because the threshold to bid is lower compared to IAA, which has heavy penalties and a more difficult interface. Feedback from my customers indicates that Copart takes about six out of every 10 cars I sell. The remaining four are split between IAA and individual dealers. Some dealers also buy from eBay, where they inspect cars.
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