Copart operates online auctions for salvage and used vehicles, primarily selling wrecked or damaged cars on behalf of insurance companies after they've settled claims with vehicle owners. Its auction platform connects insurance companies looking to dispose of totaled vehicles with buyers, including dismantlers, rebuilders and used parts dealers, who bid on vehicles through Copart's online bidding system. The company operates a large network of physical vehicle storage yards where damaged vehicles are held before and during the auction process, giving it significant real estate and logistics infrastructure supporting its auction business. Copart's revenue is tied to the volume of vehicles totaled in accidents, which correlates with total miles driven and the number of vehicles on the road, along with vehicle values that determine the fees Copart earns on each auctioned vehicle.