Posted on 09/11/2021 4:29:24 PM PDT by blam
Junked-car auctioneer Copart, Inc., or simply Copart, reported earnings this week and said given the stellar growth in new and used car prices this year, wrecked car prices are getting a lot more expensive.
On Thursday, Copart’s CEO Jeffrey Liaw told investors on an earnings call that strong used car prices are a driving force behind “the record average selling prices” for wrecked cars.
Copart specializes in auctioning wrecked cars that insurers have totaled. The vehicles go to auction and are frequently bought by companies who part out vehicles.
Selling prices for wrecked cars surged 20.7% in the most recent quarter versus the same period in 2020. That compares with a 48% jump in the three months ending in April and 35% in the quarter before that.
Source: Bloomberg
During the question and answers part of the call with investors, the CEO told Jefferies’ Bret Jordan that insurers are totaling cars more quickly because technology has gotten so sophisticated that it might be too expensive to replace and recalibrate sensors in a minor fender bender. The rise in prices gives insurers a more significant economic incentive to total and let Copart auction it off than fixing.
“When it comes to the insurance vehicles, yes, more cars are drivable today because a car can be totaled because a rear sensor or front sensor or lane departure warning sensor on the mirror is knocked out and the replacement and calibration is expensive. That yes, there are more run and drive cars as a percentage of the total.
“If you visited some of our yards, you would be astonished by some of the high-value Range Rovers and European vehicles that you would see on the lots that at least on their surface look perfectly good and perfectly functional — and in many cases are,” Liaw said.
Another reason for soaring wrecked car prices is that supply-chain woes in the automotive industry have made it more challenging to find new parts, thus boosting demand for used parts. Also, higher metal prices have made wrecked cars more appealing to scrappers.
This is just more evidence that the Federal Reserve’s narrative of “transitory” inflation is a whole bunch of nonsense as rising prices rip through the automotive industry.
Food Inflation Hits Record High, Prices Up Sharply On Beef, Chicken, Pork, Turkey, Eggs, And Fish
Prices of some staples have been driven sky-high. Some of the truly startling annual numbers from Friday’s Producer Price Index:
•Beef and Veal: +59.2 percent
•Pork: +34.1 percent
•Chickens: +32 percent
•Fish: +18 percent
•Turkey: +41.4 percent
•Fresh eggs: +31.7 percent
Shortening and cooking oils are up a jaw dropping 43.5 percent.
Destroying the U.S. economy so they can replace it with a communist economy is the goal of the traitorous Demonicrats in the ChiComjoe kakistocracy.
Its the computer chips that are valuable.
and remember according to government inflation rates the price of food is not to be factored
So, are Aluminum bodied Ford F-150s more desirable as part trucks?
“the price of food is not to be factored”
Nor, apparently Energy Prices”.
It’s TOTAL KR@P....
Those are the only two categories that I go out to buy weekly.
they way things are going nowadays some of these vehicles may be considered totalled due to being driven by someone that refused the fauxcine...
True .... no reality by elites
ping
In ten years, America will look like Havana with only old cars on street.
Then why aren’t my gold and silver prices going up?
gold and silver are up substantially in the last 2 years
I saw a nice (just nice, not super polished and restored) 1966 Mustang sitting at the gas pump today.
2021-1966 = 55 years old, and looking and running fine.
We did not see 1932 Fords in nice, stock shape in 1987 (55 yo), like Mustangs are today.
Just musing.
My newest vehicle is 17 years old.
Runs fine. I have 4 vehicles.
I can get parts and I have the tools to fix it.
Why would I want to buy Democrat cars?
Low-end first-gen notchback Mustangs are amazingly inexpensive. Convertibles are surprisingly cheap. They made several hundred thousand of them.
OTOH, heavily optioned fastback V-8 first gen Mustangs are shockingly expensive.
Wonder how much of that is due to Bullitt?
“Physical Demand Will Completely Overwhelm Supply” And How Silver Could Wind Up Over $270
My local Toyota Dealer has one [1] new car on the lot - the cars in the showroom are demos with 5000 + Miles. People are on waiting lists with no deliveries before March 2022.
My Ford Ranger is 27 years old, 257,000 miles and I drive it every day. My only other vehicle is a 2017 Honda Ridgeline that I drive about 4,000 miles a year. these are the last vehicles I'll ever own.
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