The following blog by Copart UK’s Managing Director, Jane Pocock, recently featured in Insurance Edge.
Jane Pocock from Copart looks ahead following the GE result and wonders what the car parts and salvage market will look like following a Brexit deal;
The outcome of the election means we’re at last likely to get Brexit out of the way and get a clearer idea of what it will actually mean for business. However just the expectation of the UK leaving the EU has already had a major impact on UK commerce and companies that have an international buyer base, as we do, have a great advantage.
All of our growth in the past 12 months has come from non-EU countries, as the fall in sterling and the Euro has encouraged more competition in both new and existing markets. And we now have buyers in 87 non-EU countries – the newest addition being Bermuda – a further example of the changing marketplace for salvage vehicles.
Economic conditions have encouraged non-EU buyers, who are now four times more active in the market than their EU and UK counterparts, bidding higher, and for more vehicles, every day. They currently pay an average 6% more per vehicle than UK purchasers.
We’ve been monitoring these trends in the lead up to Brexit and will carry on doing so post-Brexit, with the aim of publishing a quarterly update based on market insights and data analysis to map the continuing impact of Britain’s departure from the EU on motor salvage trading.
As well as keeping an eye open for any other new changes, developments and trends influenced by Brexit, we’ll be regularly reviewing three key market indicators: who is buying in which countries; what they’re buying; and how much they’re spending.
We’ve already seen significant changes, and the level of activity by non-EU buyers continues to grow month by month – it will be interesting to see how it plays out as Brexit finally becomes a reality.
Brexit undoubtedly throws up many challenges, but it’s also thrown up many areas of opportunity for organisations who trade with buyers globally.
I can certainly see the benefits for the UK salvage market and the insurers that supply it, with the huge potential to benefit from heightened interest from foreign buyers and maximise salvage returns.
This article is sponsored content and was produced in association with Copart.
Source: Insurance Edge
Categories: Industry News