Partner Interview
Published March 6, 2026
Copart vs IAA: Canada, Competitive Dynamics & Ritchie Brothers Acquisition Impact
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Disclaimer: This interview is for informational purposes only and should not be relied upon as a basis for investment decisions. In Practise is an independent publisher and all opinions expressed by guests are solely their own opinions and do not reflect the opinion of In Practise.
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So there are pros and cons to each. How do they view their properties and their property acquisition, even in the U.S., and whether they have a competitive advantage against IAA? How was that seen internally?
I'll tell you a great story. I had a piece of property about two and a half hours outside of Toronto. It was way bigger than the acquisition, and I thought the price was white. I said, as we're looking to grow, why don't we sell a piece of this off? He said, "What? Get out of my office and come back in." I asked what he was talking about. He said the word "sell" is a swear word here.
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Let's go back to the autonomous vehicle question, but speaking more generally about things like ADAS, was there an internal view of how much better cars were getting in terms of preventing accidents? How did you value that against the total loss rate and the reduction in accidents versus the increasing complexity in parts and how expensive it is to repair? If you just look at the improvement in cars, forgetting about full autonomous, was there any kind of view of how that was going to move?
Population and volume drive a lot of this as well. In Toronto, we've got the busiest highway in North America. There are accidents like you wouldn't believe. I think people have a false sense of security sometimes with these accident detectors. Yes, the car is going to beep, but it might be too late. It beeped at you, and by the time you react, you've hit a bumper. We used a great example back in the day, 15 or 20 years ago, a Honda bumper had 16 parts. Now it's got 63, and there are sensors. Sometimes a little bumper-to-bumper accident can write off your vehicle.
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