Dealertrack and IAA Combine Industry Leading Solutions to Help Expedite the Total Loss Settlement and Lien Payoff Process Digitally

NORTH HILLS, N.Y. and WESTCHESTER, I.L., November 07, 2019 – Dealertrack announces a new integration with IAA Inc. (NYSE: IAA), a leading global marketplace connecting vehicle buyers and sellers. Bringing together two industry leading technology solutions — IAA Loan Payoff™ and Dealertrack Accelerated Title^®—will help mitigate the time-consuming process of managing a total loss claim requiring loan payoff and title release. Combined, this integration now offers lenders and insurers one cohesive digital solution that delivers positive and negative equity functionality, real-time payoff quotes, letters of guarantee, access to title vaults, and direct connection and ACH payments to lenders.

Based on internal analysis and interactions with multiple insurance providers, IAA estimates that there are more than 5 million cars declared a total loss each year and approximately 60 to 70% have loans that need to be paid off.¹ The historically manual workflow of the total loss process typically takes 45 to 90 days to complete end-to-end.² Based on the average price for cars declared total losses, this can tie up billions of dollars and slow consumers from returning to the auto retail market to purchase their next vehicle. This can negatively impact the customer experience and impede the productivity and profitability of lenders, insurers and the salvage auctions.

Integrating Dealertrack Accelerated Title and IAA Loan Payoff expands access to vehicle titles for all parties – lenders, insurers and salvage auctions. It creates a more digital, automated workflow that speeds up the loan payoff and title release process, lowering operational costs and easing friction between all parties.

“Time is money and lenders and insurers today cannot afford to get bogged down by the lengthy total loss settlement and lien payoff process,” said Kaitlin Gavin, vice president and general manager of Dealertrack Registration and Title Solutions. “Dealertrack Accelerated Title is a solution that no one else in the auto industry offers. Since inception, we have helped dealers efficiently submit more than $4 billion dollars in loan payoffs and receive expedited titles to ensure they can turn their inventory effectively.³ Partnering with IAA allows us to offer similar benefits to the total loss market, enabling insurers and lenders to seamlessly navigate total loss claims with negative equity that require a letter of guarantee from the lender.”

“We are pleased to be partnering with Dealertrack to address some of the most crucial pain points in the total loss claims process,” said Tim O’Day, president of U.S. operations for IAA. “By linking our strong insurer partner base with Dealertrack’s robust network of lenders, we’re building an unprecedented digital connection to ensure titles can be processed and claims can be closed faster than ever.”

Dealertrack sources auto loans from more than 7,400 lender partners and manages over 52 million paper and electronic titles, making them the largest automotive title management company in the U.S.⁴ Its Accelerated Title solution reduces the time it takes to process vehicle payoff and title release by up to 70%, creating cost savings for dealers accepting trade-ins.⁵ IAA Loan Payoff enables digital connectivity between insurance companies and auto lenders to address negative equity liens and a letter of guarantee resulting in a faster total loss settlement and lien payoff process.

The joint solution is currently in alpha pilot testing and will enter beta pilot testing in December 2019.

^{1, 2} IAA 2019 Data

³Dealertrack system data, September 30, 2019.

⁴ Dealertrack 2019 Data

⁵ Based on average industry timeframe for vehicle title release and vehicle payoff process of 18+ days, as determined by Dealertrack data.