NORTH HILLS, N.Y. and
WESTCHESTER, Ill., July 9, 2020 /PRNewswire/ -- The General Assembly
of North Carolina has amended its
laws governing the title transfer of salvage vehicles by removing
notary requirements, permitting electronic signatures and allowing
access to division of motor vehicle systems. Prompted by the
global health crisis, the amendment, due to be signed into law in
mid-July, marks a new milestone in that half of the states in the
U.S. would officially be eligible to transfer total loss titles
digitally.
"With the passage of HB 337 (Regular Session 2019), North Carolina became the 25th
state to enable electronic salvage title processing," said
Sarah Hunsicker, Director of
Government Affairs for Dealertrack Registration and Title
Solutions. "Additionally, North
Carolina has taken further steps to streamline the transfer
of a total loss vehicle, including permitting electronic signatures
and eliminating notarization requirements."
Even before the coronavirus pandemic forced many dealerships,
DMVs and auctions to operate with fewer staff and social
distancing, total loss title processing could take 8-10 weeks. The
delay to transfer ownership of a total loss vehicle stalls cash
flow for insurance companies, dealers and other downstream players
who derive value from fixing, parting out or recycling salvaged
vehicles.
The new law paves the way for digital processing of total loss
titles in North Carolina, which
can now be done via an enhanced strategic agreement between IAA,
Inc. (NYSE: IAA) and Dealertrack Registration and Title Solutions.
IAA is a leading global marketplace connecting vehicle buyers
and sellers. Dealertrack's Registration and Title Solutions
expedite back office workflow and improve deal efficiency. The
companies' combined technologies allow for the transfer of
information between the parties necessary to the total loss title
transfer, which can cut the timeframe down to as little as one week
and free up crucial cash flow. IAA's Loan Payoff™ allows
insurance companies and automotive lenders to digitally connect to
address negative equity liens. It then issues a letter of
guarantee, resulting in accelerating the total loss settlement and
lien payoff process.
"When a total loss occurs, generally the consumer is made whole
at the beginning of the claims process on the value of the
vehicle," explained Tim O'Day,
president of U.S. operations for IAA. "The creation of value
and healthy revenue from that asset then falls on insurance
companies, dealerships and a whole eco-system of affiliated
businesses. Enabling the process to work digitally speeds up
the flow of value from one party to the next, which in turn
benefits the entire auto eco-system."
In a vehicle claim, moving the title faster decreases the cycle
time to sell a total loss vehicle, which means better value to the
involved parties, and can translate to more stable insurance
premiums to consumers.
Based on internal analysis and interactions with multiple
insurance providers, IAA estimates that there are more than five
million cars declared a total loss each year and approximately 60
to 70 percent of those vehicles have loans which require payoff
prior to the clear transfer of title.1 Based
on the average price for cars declared total losses, delays in the
loan payoff and title transfer processes can tie up billions of
dollars and slow consumers from returning to the auto retail market
to purchase their next vehicle.
"If there is a silver lining to be found for our industry during
the upheaval caused by the national health crisis, it has been the
spur to digital adoption," said Kaitlin
Gavin, vice president of operations, Dealertrack
Registration and Title Solutions. "We've progressed years in terms
of applying available technology to total loss titling in just
weeks' time."
1 IAA 2019 Data.
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 multi-channel
platform processes approximately 2.5 million total-loss, damaged
and low-value vehicles annually. 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 innovative vehicle
merchandising, efficient evaluation services
and digital bidding tools, 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.
Forward-Looking Statements
Certain statements contained in this release include
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. In particular, statements
made that are not historical facts may be forward-looking
statements and can be identified by words such as "should," "may,"
"will," "anticipates," "expects," "intends," "plans," "believes,"
"seeks," "estimates," and similar expressions. In this release,
such forward-looking statements include statements regarding the
expected timing and associated benefits of the IAA and Dealertrack
strategic agreement, and the related products and processes
discussed in this release. Such statements are based on
management's current expectations, are not guarantees of future
performance and are subject to risks and uncertainties that could
cause actual results to differ materially from the results
projected, expressed or implied by these forward-looking
statements. These risks and uncertainties include: uncertainties
regarding the impact of the COVID-19 outbreak, and measures to
prevent its spread, on our business and the economy generally; the
loss of one or more significant suppliers or a reduction in
significant volume from such suppliers; our ability to meet or
exceed customers' demand and expectations; significant current
competition and the introduction of new competitors or other
disruptive entrants in our industry; the risk that our facilities
lack the capacity to accept additional vehicles and our ability to
obtain land or renew/enter into new leases at commercially
reasonable rates; our ability to effectively maintain or update
information and technology systems; our ability to implement and
maintain measures to protect against cyberattacks and comply with
applicable privacy and data security requirements; our ability to
successfully implement our business strategies or realize expected
cost savings and revenue enhancements, including from our margin
expansion program; business development activities, including
acquisitions and integration of acquired businesses; our expansion
into markets outside the U.S. and the operational, competitive and
regulatory risks facing our non-U.S. based operations; our reliance
on subhaulers and trucking fleet operations; changes in
used-vehicle prices and the volume of damaged and total loss
vehicles we purchase; economic conditions, including fuel prices,
commodity prices, foreign exchange rates and interest rate
fluctuations; trends in new- and used-vehicle sales and incentives;
and other risks and uncertainties identified in our filings with
the Securities and Exchange Commission (the "SEC"), including under
"Risk Factors" in our Form 10-K for the year ended December 29, 2019 filed with the SEC on
March 18, 2020. Additional
information regarding risks and uncertainties will also be
contained in subsequent annual and quarterly reports we file with
the SEC. The forward-looking statements included in this release
are made as of the date hereof, and we undertake no obligation to
publicly update or revise any forward-looking statement to reflect
new information or events, except as required by law.
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SOURCE Dealertrack