WESTCHESTER, IL – Insurance Auto Auctions (IAA) has announced record vehicle returns during the second quarter. IAA’s dual bidding strategy has continued to drive more buyers to the company’s auctions, resulting in increased bidding activity and higher vehicle returns for its insurance company suppliers.
“On average, our returns have increased more than $300 per unit compared to 2003, providing a significantly better return for our insurance company suppliers. Our live auctions, most of which feature Run & Drive auction lanes, are supplemented with our Internet bidding capability, giving our growing customer base the flexibility to see and bid on our vehicles up close or through the Internet from anywhere in the world in a real-time setting,” said Tom O’Brien, CEO.
Regarding IAA’s acquisition of Kelso & Company, O’Brien said the transaction has allowed IAA to focus more time on improving the auction’s operations. He said IAA generated revenues of $71.9 million in the second quarter, compared with $60 million in the same quarter last year. Gross profit margins improved to 26 percent in the second quarter, up from 22 percent in the same quarter last year. The auction also expanded during the second quarter to Jacksonville, Fla., and Altoona, Pa.
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