Digital Transformations in the Auto Industry Continue to Rise, Supporting Faster Processing of Total Loss Titles

NORTH HILLS, NY and WESTCHESTER, IL, June 9, 2021 – IAA, Inc. (NYSE: IAA), a leading global digital marketplace connecting vehicle buyers and sellers, today announces an enhanced strategic agreement with Dealertrack to provide electronic registration and titling services in Ohio through facilitating the digital transfer of total loss titles. The agreement is announced as the global COVID-19 health crisis continues the acceleration of digitization efforts across the automotive industry, which faces yet another challenging year ahead due to the ongoing impacts of inventory shortages. These digital capabilities will be essential for dealerships to meet consumer expectations of completing more of the shopping experience online, as more than three quarters of today’s shoppers are open to the idea of buying a vehicle completely online.[1] The enhanced capabilities offered by IAA and Dealertrack will connect consumers, dealerships, and insurers in Ohio for a more efficient, more profitable electronic total loss title processing experience.  

The pandemic changed longstanding industry dynamics in several unforeseen ways. In particular, the total loss segment of the market has been affected by the circumstances of the last year. According to industry data, in 2020, overall traffic volume decreased by 14%, with passenger interstate travel dropping more than 50% in mid-April alone.[2] Even with drivers traveling fewer miles and submitting fewer overall claims, accident severity levels rose due to drivers increasing their median speeds. The percentage of vehicle claims that were non-drivable and flagged as total losses rose over the previous two years. Repair costs also trended higher during most of 2020, increasing 4.9% between 2019-2020, compared to 3.6% increases between 2018-2019.[3] Higher repair costs in turn are pushing insurance companies to total vehicles that previously would have been restored.

These higher costs and totaled cars arrive amid a tight used car market due to industry-wide supply constraints caused in part by electronic chip shortages reducing availability of new vehicles that will likely persist in the coming months. The good news is the pace of digital transformation has greatly increased to keep up with this challenging environment. Prior to the pandemic, total loss title processing often took 8-10 weeks. This caused a delay in transferring ownership of total loss vehicles, which stalled cash flow for insurance companies, dealers and the downstream players who derive value from fixing, parting out or recycling salvaged vehicles. Twenty-five (25) states offer Electronic Lien and Title solutions (ELT) and 29 allow electronic registration and titling (ERT), including Ohio, which is eligible to transfer total loss titles digitally. Prior to the collaboration in Ohio, IAA and Dealertrack Registration and Title Solutions announced a strategic agreement in July 2020 when North Carolina passed a bill to become the 25th state to offer ELT services.

“Insurance companies need to control costs and cycle time, so there is less of a lag between making the customer whole and moving the vehicle value to the final party,” said Tab Edmundson, vice president of client solutions for IAA. “This IAA and Dealertrack collaboration has the potential to expedite back-office workflow and improve deal efficiency by leaps and bounds.”

More than 5 million vehicles are declared a total loss each year, according to IAA estimates, and up to 70% of those vehicles carry a loan.[4] The IAA Loan Payoff solution, which was recently enhanced with Dealertrack Payoff Quote, can reduce the time to secure a vehicle title for a total loss claim by up to 50%, which can result in greatly reduced storage costs and vehicle depreciation. 

“We’ve seen more titling legislative activity in the last year than we’ve seen in the last 50 years because many of these laws were written in the 1950’s when digitization wasn’t a consideration,” said Kaitlin Gavin, vice president of operations, Dealertrack Registration and Title Solutions. “The last year catalyzed digital transformation and adoption in many parts of the auto industry including the total loss sector. Thanks to strategic agreements like the one between Dealertrack and IAA. Technology such as the Ohio electronic titling solution can accelerate the loan payoff and the title release, which not only improves sales velocity, but improves the bottom line for dealerships in Ohio and across the country.”

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About Dealertrack

Dealertrack provides industry-leading software solutions that give dealerships, lenders, and partners the confidence to thrive in an ever-changing automotive market. The company’s integrated suite of powerful easy-to-use products and services helps dealerships and their lending partners grow by increasing efficiency and improving decision-making. Dealertrack is part of the Cox Automotive family, a company that is transforming the way the world buys, sells, owns and uses cars. Dealertrack—along with its unmatched network of dealership and lending partners—is improving the car buying experience by embracing the technologies that will shape the future of automotive retail. For more information about Dealertrack, visit www.dealertrack.com.

About IAA
IAA, Inc. (NYSE: IAA) is a leading global digital marketplace connecting vehicle buyers and sellers. Leveraging leading-edge technology and focusing on innovation, IAA’s unique platform facilitates the marketing and sale of total-loss, damaged and low-value vehicles.  Headquartered near Chicago in Westchester, Illinois, IAA has nearly 4,000 talented employees and more than 200 facilities throughout the U.S., Canada and the United Kingdom.  IAA serves a rapidly growing global buyer base – located throughout over 135 countries – and a full spectrum of sellers, including insurers, dealerships, fleet lease and rental car companies, and charitable organizations. Buyers have access to multiple digital bidding and buying channels, innovative vehicle merchandising, and efficient evaluation services, enhancing the overall purchasing experience. IAA offers sellers a comprehensive suite of services aimed at maximizing vehicle value, reducing administrative costs, shortening selling cycle time and delivering the highest economic returns.   For more information visit IAAI.com, and follow IAA on Facebook, Twitter, Instagram, YouTube and LinkedIn.  

Please refer to IAA's forward-looking-statements disclosure.

Volkswagen Strength Driven by Best-Selling Models; Tesla Falls on Price Declines for Its Most Expensive Vehicles

IRVINE, Calif., May 18, 2021 – The estimated average transaction price for a light vehicle in the United States was $40,768 in April 2021, according to the analysts at Kelley Blue Book. New-vehicle prices increased $864 (up 2.2%) from April 2020, while increasing $92 (up 0.23%) from March 2021.   

“Comparing the market to this time last year when COVID-19 brought the industry to a halt, highlights an increase in demand, sales, and vehicle prices all have contributed to continually rising transaction prices,” said Kayla Reynolds, industry intelligence analyst at Cox Automotive. “Many manufacturers reported year-over-year growth in average transaction prices with Volkswagen Group seeing the largest increase year over year (up 9%), while Tesla had the greatest decrease from last year, down 10.3%.”

The strength of the Volkswagen brand, up 6.8%, was driven by its two best-selling models, the Atlas and Tiguan, both increasing approximately $3,000 on average since last year. Audi, up 6.7%, reported a 30% year-over-year increase in the average transaction price of its second-highest-priced model, the A7, which also increased in sales from April 2020.

While Volkswagen’s transaction prices rose last month, the story was different for Tesla. The Model X and Model Y, the brand’s two most expensive vehicles, dropped 9% in average transaction prices from last year. 

At the segment level, luxury full-size SUVs and crossovers had the largest year-over-year growth (up 14.4%). Luxury full-size utility vehicles posted the second-highest average transaction prices at $98,017, just behind high-end luxury cars. All models in the luxury full-size utility segment experienced an increase, including the Cadillac Escalade, Lincoln Navigator, Lexus LX, Land Rover Range Rover and more. More than half of the vehicles in this segment also experienced large gains in sales year over year.

Electric vehicle prices dropped 10.8% year over year, driven mostly by the drop in Tesla transaction prices. The electric vehicle segment average decline, down more than $6,000, was due to the introduction of more reasonably priced electric vehicles recently hitting the market, including the Volkswagen ID.4 and Mustang Mach-E

For more information and news from Kelley Blue Book's KBB.com, visit www.kbb.com/media/, follow us on LinkedIn at https://www.linkedin.com/company/kelley-blue-book/, Twitter at www.twitter.com/kelleybluebook (or @kelleybluebook), like our page on Facebook at www.facebook.com/kbb  and follow us on Instagram at https://www.instagram.com/kbb_com/ (or @kbb_com).

About Kelley Blue Book (www.kbb.com)

Founded in 1926, Kelley Blue Book, The Trusted Resource®, is the vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry. Each week the company provides market-reflective values on its top-rated website KBB.com, including its famous Blue Book® Trade-In Values and Kelley Blue Book® Price Advisor tool, which provides a range for what consumers can reasonably expect to pay for a vehicle in their area. Car owners looking to sell immediately can also get a redeemable, transaction-ready offer with Kelley Blue BookSM Instant Cash Offer. The company also provides vehicle pricing and values through various products and services available to car dealers, auto manufacturers, finance and insurance companies, and governmental agencies. Kelley Blue Book is a Cox Automotive brand.

About Cox Automotive

Cox Automotive Inc. makes buying, selling, owning and using vehicles easier for everyone. The global company’s more than 27,000 team members and family of brands, including Autotrader®, Dealer.com®, Dealertrack®, Dickinson Fleet Services, Kelley Blue Book®, Manheim®, NextGear Capital®, VinSolutions®, vAuto® and Xtime®, are passionate about helping millions of car shoppers, 40,000 auto dealer clients across five continents and many others throughout the automotive industry thrive for generations to come. Cox Automotive is a subsidiary of Cox Enterprises Inc., a privately-owned, Atlanta-based company with annual revenues of nearly $20 billion. www.coxautoinc.com

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Media Contact:

Brenna Buehler                                                                               

949-473-6595                                                    

brenna.buehler@coxautoinc.com