Technology is opening new ways for us to share vehicles with our audience. Mobile apps let people list vehicles for sale on auction sites in seconds. More people are searching, bidding, and buying on mobile devices, too. Technology is also enabling us to provide profitable new services to customers like inspection reports internal and external imaging.

As we look forward into a new year and beyond, here are some of the likely effects of how technology will further evolve our industry.

International Scope

The internet connects people all over the world in almost real time communication. This new reach is also opening up entire new markets for auto recyclers. Most countries are now online with high-speed internet, so every auction is an international auction. Many of these countries also have skilled auto repairers who work for much lower wages than their counterparts in North America. That means a total loss in Alberta can be repaired and sold for a nice profit in places like Eastern Europe, Africa, South America and Asia. At Copart, 1 in 3 vehicles we auction are purchased by international buyers. By taking repairable and recycled vehicles to an international market, competition increases and with it the average sales prices at auction.

It Likely Won’t All Be Electric

Electric cars continue to improve at a blistering pace. Charging times are getting faster, charging stations are more common. But electric drive trains powered by batteries, while they get a lot of press, aren’t the only kinds of vehicles that will be on the road in the years to come. Senior executives at major auto manufacturers have spoken of a future of blended powertrains. Toyota is currently working on an electric vehicle where current is generated by onboard fuel cells. Diesel engines will always be needed for some heavy industrial jobs. And many still see a place for a much more efficient and clean internal combustion engine. The bottom line is that as we plan our future infrastructure, we need to be prepared to handle a wide variety of vehicles.

More Customers & Broadened Marketing

Numerous scholars have commented on the merging of the wholesale and retail markets. The recent chip shortage sent many new buyers to the used market. The resulting shortage of used cars sent many consumers to traditional wholesale outlets for vehicles like online auto auctions. We’re also seeing increasing international demand for North American vehicles for use as repairable vehicles, parts and raw materials. This widened customer base brings with it new business challenges. Education is now a huge part of the marketing message. Many customers need to be taught how online auctions work, what regulations govern who can buy and sell, the complexities of importing and exporting vehicles, and most importantly what professional help is available to empower buyers to make a wise purchase. And this all must be conveyed in ways that don’t patronize, irritate and alienate experienced buyers.

The other challenge will be creating a sense of comfort with buying vehicles only seen on a screen. One emerging technology that may help is augmented reality, where someone can have condition report details pointed out to them as they look over a vehicle. Soon potential buyers will be able to examine a vehicle inside and out before they bid right from their desk thanks to virtual reality. VR marketing in places like the MetaVerse will play a growing role in the mix as well.

Selling the Experience

Along with shopping for vehicles, customers will be looking for a good shopping experience. They want to feel good about the entire process of searching, paying and acquiring vehicles. The companies that can provide this experience and effectively communicates it to potential customers will ultimately win in the international era of recycled and remarketed vehicles.

Be on the lookout for ways higher connection speeds in more places using 5G technologies can empower a salesperson to provide great customer service to anyone from anywhere.

In Conclusion

The rapidly approaching future will present new customers, blurred lines between consumer and wholesale markets, and a host of new ways to tell stories and let customers view and evaluate the Recycled vehicles.

But in the end its just the tools that will change. The timeless values of making it easy for customers find what they need, purchase it with confidence, and be satisfied when they receive it will always remain.

People want vehicles for different reasons. Some want to recycle the parts, others want low-cost transportation, still more want inventory, and some just want the materials their made from.

Copart is constantly innovating toward this future with new auctions, product offerings, services and touchpoints so when the future arrives, we are not just adapting to it, we are leading the way into it.