KAR Auction Services, Inc. provides vehicle auction services in North America. The company provides auction services for sellers of used, or ‘whole car,’ vehicles and salvage vehicles through its 230 physical auction locations, as of December 31, 2012, and multiple proprietary Internet venues. In 2012, the company facilitated the sale of approximately 3.3 million used and salvaged vehicles. As of December 31, 2012, the company had a network of 67 whole car auction locations and 163 salvage auction locations. Segments The company operates as three business segments: ADESA (ADESA, Inc.) Auctions, IAA (Insurance Auto Auctions, Inc.) and AFC (Automotive Finance Corporation). ADESA The company provides whole car auctions and related services to the vehicle remarketing industry in North America. The company serves its international customer base through online auctions and auction facilities that are developed and strategically located to draw professional sellers and buyers together and allow the buyers to inspect and compare vehicles remotely or in person. The company’s online service offerings include OPENLANE, an Internet-based remarketing solution allowing the company to offer vehicles for sale from any location. The company offers both online and physical auctions, as well as value-enhancing ancillary services in a manner to maximize returns for the sellers of used vehicles. The company transfers the vehicles and ownership to the buyer and the net funds to the seller. Vehicles are offered for sale at the physical auctions on at least a weekly basis at most locations and the auctions are broadcast over the Internet with streaming audio and video so that remote bidders can participate via its online capabilities. Suppliers of vehicles to its whole car auctions primarily include large institutions, such as vehicle manufacturers and their captive finance arms, vehicle rental companies, financial institutions, and commercial fleets and fleet management companies (collectively ‘institutional customers’); and franchised and independent used vehicle dealers (collectively ‘dealer customers’). Buyers of vehicles at its whole car auctions primarily include franchised and independent used vehicle dealers. Services: The company’s whole car auctions also provide a range of innovative and value-added services to sellers and buyers that enable the company to serve as a ‘one-stop shop.’ Many of these services may be provided or purchased independently from the auction process, including the following: Auction Related Services: ADESA provides marketing and advertising for the vehicles to be auctioned, dealer registration, storage of consigned and purchased inventory, clearing of funds, arbitration of disputes, auction vehicle registration, condition report processing, post-sale inspections, security for consigned inventory, title processing, sales results reports, pre-sale lineups and auctioning of vehicles by licensed auctioneers. Transportation Services: The company provides both inbound (pickup) and outbound (delivery) transportation services utilizing its own equipment and personnel, as well as licensed and insured third party carriers. Through the CarsArrive Internet-based system, customers can instantly review price quotes and delivery times, and vehicle transporters can check available loads and also receive instant notification of available shipments. CarsArrive provides automated vehicle shipping services. Reconditioning Services: The company’s ADESA auctions provide detailing, body work, paintless dent repair (PDR), light mechanical work, glass repair, tire and key replacement and upholstery repair. Inspection Services Provided By AutoVIN: AutoVIN provides vehicle condition reporting, inventory verification auditing, program compliance auditing and facility inspections. Field managers are equipped with handheld computers and digital cameras to record all inspection and audit data on-site. Title and Repossession Administration and Remarketing Services: The company provides end-to-end management of the remarketing process, including titling, repossession administration, inventory management,
kar auction services inc (KAR:New York)
13085 Hamilton Crossing Boulevard
Carmel, IN 46032
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