For Immediate Release
Vice President, Marketing
Customer Satisfaction Study Reveals Salvage Customers Prefer Both Live and Live-Online Auctions
Results Support Insurance Auto Auctions’ Signature Hybrid Auction Model
Westchester, Ill. — Insurance Auto Auctions, Corp., the leading hybrid model salvage auto auction company and a wholly owned subsidiary of KAR Auction Services, Inc. (NYSE: KAR), today released the findings of a recent customer satisfaction study, conducted by an internationally recognized global market research firm. The study revealed that, when given the choice, over 73 percent of salvage vehicle buyers in the study stated that they prefer participating in auctions that offer live in-person bidding or a combination of both live in-person and live-online auction versus an online-only auction. It is important to note that many of the buyers surveyed also purchased from other salvage auction companies.
For the past 11 years, IAA has offered customers the freedom to choose what works best for them. By presenting live auctions over the Internet, and live in-person Run-and-Drive™ auctions, IAA provides a Hybrid Auction Model that gives buyers the choice to bid and buy from two channels versus one. The success of this model is indicated by the fact that in the first 22 weeks of 2010, IAA buyer attendance has grown over 45% versus the same period in 2009, and for the same period the number of successful buyers was up 22%.
Analysis on IAA data overwhelmingly demonstrates that vehicles driven through the company’s live Run-and-Drive sale presentation on average sell for over 28 percent more than vehicles that are not sold through the Run-and-Drive lanes. The ability to see, touch and feel a salvage vehicle during a Run-and-Drive auction suits many of IAA’s customers as well as having the choice to bid and buy live on-line through I-Bid Live, the company’s online bidding platform.
“We believe this is the first time an independent third-party study of this magnitude has been conducted in the salvage auction industry. We were pleased to discover the significant amount of positive feedback regarding our signature Hybrid Auction Model and our live Run-and-Drive,” said Tom O’Brien, CEO. “This independent, third-party study revealed what has been a hallmark at IAA for the past 28 years. We have remained true to our core by providing buyers and sellers with a top-notch model and excellent service and products,”
The study also concluded that Insurance Auto Auctions ranked the highest with respondents when compared to other auction companies with statistically significant responses in the following categories:
- Overall customer satisfaction
- Customer service
These results revealed consistent and significant competitive advantages for Insurance Auto Auctions. The company offers salvage vehicles that range from cars to motorcycles, boats, motor homes, personal watercraft, snowmobiles, and travel trailers. IAA also offers salvage commercial vehicles including: buses, trailers, trucks, heavy equipment, emergency vehicles, farm, forestry and heavy-duty vehicles.
About Insurance Auto Auctions, Inc.
Insurance Auto Auctions, Corp. (IAAI), a wholly owned subsidiary of KAR Auction Services, Inc. (NYSE: KAR), provides the advantage in salvage auto auctions with its Hybrid Auction Model combining live and live-online auctions, North America’s broadest salvage auction facility footprint, a strong global buyer base and high vehicle returns. IAA’s more than 150 facilities across the United States and Canada provide vehicle suppliers and buyers with powerful solutions to process and acquire total-loss, recovered-theft, fleet lease, donation and rental vehicles. The IAA Hybrid Auction Model, including live, live-online, and proxy bidding, united with its mature global buyer base and diverse inventory, produce some of the industry’s highest returns for vehicle providers. With 28 years in the industry, IAA holds a comprehensive warehouse of salvage auction data. For more information regarding IAA visit our website at www.iaai.com.