National Powersport Auctions plans further expansion, following its acquisition by Copart Inc., an online salvage and insurance auto auctions service, NPA’s Chief Operating Officer Jim Woodruff told Powersports Finance today.
“We’ve known of each other for long time, and the idea of the leader in insurance space and leader in powersports working together became very attractive,” Woodruff said. “When we looked at opportunities and synergies, we were able to come together in a way that will allow us to be bigger and better.”
The ability for National Powersport Auctions to expand its footprint and invest in other services is key, he added.
NPA currently operates facilities in Atlanta, Cincinnati, Dallas, San Diego, and, most recently, Philadelphia. In December 2016, NPA opened its fifth facility in Bristol, Pa., and hosted its inaugural dealer-only event there in January 2017.
“In the short term, there is a lot of opportunity domestically … for additional locations, to invest in the facilities, infrastructure, and people more quickly than we could do on our own,” Woodruff said. “I think that’s the opportunity — to leverage each of our areas of expertise, and to learn and apply those practices is very exciting.”
The first step following the acquisition is to “understand what we have to work with,” Woodruff said. The addition of more locations, such as the recent Pennsylvania location, is one thing NPA would like to approach first. The where and how “needs to be figured out,” he said.
The interest and demand in pre-owned vehicles is at an “all-time high,” Woodruff said, and “it’s our job to provide those to the dealer market, and I think having a larger footprint to do that with is a key enabler.”
Dallas, Texas-based Copart’s customers are principally used-vehicle dealers, dismantlers, rebuilders, and exporters. Copart also purchases vehicles directly from the general public for resale through its Copart Direct division.