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<SEC-DOCUMENT>0001104659-09-011592.txt : 20090518
<SEC-HEADER>0001104659-09-011592.hdr.sgml : 20090518
<ACCEPTANCE-DATETIME>20090223215528
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001104659-09-011592
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20090223

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			COPART INC
		CENTRAL INDEX KEY:			0000900075
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-AUTO DEALERS & GASOLINE STATIONS [5500]
		IRS NUMBER:				942867490
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			0731

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		4665 BUSINESS CENTER DRIVE
		CITY:			FAIRFIELD
		STATE:			CA
		ZIP:			94534
		BUSINESS PHONE:		7076395000

	MAIL ADDRESS:	
		STREET 1:		4665 BUSINESS CENTER DRIVE
		CITY:			FAIRFIELD
		STATE:			CA
		ZIP:			94534
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>

<html>

<head>





</head>

<body lang="EN-US">

<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">VIA
EDGAR</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">February&nbsp;23,
2009</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.&nbsp;H.
Christopher Owings<br>
Securities and Exchange Commission</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">100
F Street NE<br>
Washington, D.C. 20549</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="99%" style="border-collapse:collapse;width:99.7%;">
 <tr>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.34%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Re:</font></b></p>
  </td>
  <td width="95%" valign="top" style="padding:0in 0in 0in 0in;width:95.66%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Correspondence from you dated February&nbsp;5, 2009
  concerning Copart,&nbsp;Inc.</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.34%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="95%" valign="top" style="padding:0in 0in 0in 0in;width:95.66%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Form&nbsp;10-K for the Fiscal Year Ended July&nbsp;31, 2008</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.34%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="95%" valign="top" style="padding:0in 0in 0in 0in;width:95.66%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Filed September&nbsp;29, 2008</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.34%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="95%" valign="top" style="padding:0in 0in 0in 0in;width:95.66%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">File No.&nbsp;001-16565</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.34%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="95%" valign="top" style="padding:0in 0in 0in 0in;width:95.66%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Proxy Statement on Schedule 14A</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.34%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="95%" valign="top" style="padding:0in 0in 0in 0in;width:95.66%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Filed November&nbsp;4, 2008</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.34%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="95%" valign="top" style="padding:0in 0in 0in 0in;width:95.66%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">File No.&nbsp;0000-23255</font></b></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ladies
and Gentlemen:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On behalf of Copart,&nbsp;Inc. (&#147;Copart&#148; or the &#147;Company&#148;), this letter
is being transmitted in response to comments received from the staff (the &#147;Staff&#148;)
of the Securities and Exchange Commission (the &#147;Commission&#148;) by letter dated February&nbsp;5,
2009 with respect to the Company&#146;s Annual Report on Form&nbsp;10-K for the
fiscal year ended July&nbsp;31, 2008, filed on September&nbsp;29, 2008, and
proxy statement on Schedule 14A filed November&nbsp;4, 2008.&#160; The numbering of the paragraphs below
corresponds to the numbering of the comments which, for the Staff&#146;s
convenience, we have incorporated into this response letter.</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Form&nbsp;10-K
for the Fiscal Year Ended July&nbsp;31, 2008</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Item 5.
Market for Registrant&#146;s Common Equity, Related Shareholder Matters and Issuer
Purchases of Equity Securities, page&nbsp;31</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Performance
Graph, page&nbsp;33</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">1.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i></b><b><i style="font-weight:bold;">We reviewed your response to
comment 1 from our letter dated December&nbsp;17, 2008. Please provide us the
companies that comprised your peer group for purposes of creating the
performance graph found in your Form&nbsp;10-K for the fiscal year ended July&nbsp;31,
2008.</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
companies that comprise the Company&#146;s peer group for purposes of creating the
performance graph found in the Company&#146;s Form&nbsp;10-K for the fiscal year
ended July&nbsp;31, 2008 (the &#147;2008 Form&nbsp;10-K&#148;) are as follows:&#160; Sterling Construction Company,&nbsp;Inc.
(STRL) and Coast Distribution System,&nbsp;Inc. (CRV).</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company supplementally advises the Staff that Copart&#146;s peer group as
constituted for the purpose of creating the performance graph for the 2004
fiscal year (ended July&nbsp;31, 2004) consisted of the following six companies
in addition to Sterling Construction and Coast Distribution:&#160; Central Parking Corp. (CPC); Insurance Auto
Auctions Inc. (IAAI); Keystone Automotive Industries Inc. (KEYS); TBC
Corporation (TBCC); Universal Automotive Industries,&nbsp;Inc. (UVSL); and JPE,&nbsp;Inc.
(JPEI).&#160; Between fiscal years 2004 and
2008, those additional members of our peer group have either been acquired or
have discontinued trading.&#160; As a result,
the Company plans to transition the composition of the performance graph to be
disclosed in its Form&nbsp;10-K for the fiscal year ended July&nbsp;31, 2009
(the &#147;2009 Form&nbsp;10-K&#148;) from its current composition (i.e., Nasdaq
Composite and peer group) to a comparison of the percentage change in the
Company&#146;s cumulative total shareholder return on its common stock with (i)&nbsp;the
Nasdaq Composite, (ii)&nbsp;an industry or line-of business index to be
identified prior to the filing of the 2009 Form&nbsp;10-K, and (iii)&nbsp;the
peer group used for the 2008 Form&nbsp;10-K, with a </font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">footnote
describing the Company&#146;s intention to discontinue the use of that peer group
beginning in the Company&#146;s Form&nbsp;10-K for the fiscal year ended July&nbsp;31,
2010.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Item7.
Management&#146;s Discussion and Analysis of Financial Condition and Results of
Operations, page&nbsp;35</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">2.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i></b><b><i style="font-weight:bold;">We reviewed your response to
comment 2 from our letter dated December&nbsp;17, 2008. Please provide a
discussion and analysis of the key variables and other factors necessary for an
understanding of revenues and operating results.</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
response to the Staff&#146;s comment and its prior comment 2 from its letter dated December&nbsp;17,
2008, the Company will disclose in MD&amp;A in its future Form&nbsp;10-K and Form&nbsp;10-Q
filings the following information relating to any increases or decreases in
total revenue:&#160; (i)&nbsp;the amount of
the increase or decrease that was attributable to increases or decreases in the
volume of cars processed and (ii)&nbsp;the amount of the increase or decrease
that was attributable to changes in the fees charged for vehicle processing or
other services.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
addition to the quantitative disclosure described above, the Company will
provide, as appropriate and as described below, additional qualitative
disclosure concerning variable and other factors affecting its revenues.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">Discussion of Key Variables and Other Factors
Affecting Revenues</font></i></b></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company supplementally advises the Staff that a number of largely qualitative
factors will influence the volume of cars the Company processes in a given
period.&#160; The Company has outlined these
factors below, most of which are discussed in the Risk Factors section of the
Company&#146;s periodic filings.&#160; To the
extent management has concluded that one or more of these factors has
influenced the Company&#146;s volume in a particular period, the Company will
provide a discussion of the factor(s)&nbsp;in the MD&amp;A.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&nbsp;Seasonality
&#150; Over 80% of the cars we process are assigned to us by insurance companies
primarily as a result of an accident in which the insurance company determines
the repair of the car is not economically feasible.&#160; In this situation the insurance company will
pay the policyholder the pre-accident value of the car, take ownership of the
car, and contract with us to sell it on their behalf.&#160; Because accidents are more frequent during
inclement weather we process more volume during the winter months.&#160; Also, severity of weather varies not only
from season to season but from year to year as seasons with higher instances of
hurricanes and ice storms will lead to more accidents.&#160; While we know weather has a direct impact on
the volume of cars processed it is not possible to reasonably quantify its
impact.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&nbsp;Business
days &#150; Our volume is directly tied to the number of business days in a
reporting period as we conduct sales every business day.&#160; During the last six fiscal years the number
of business days in each quarter of a fiscal year has varied from as few as 61
to as many as 65.&#160; Further, the same
quarters in successive fiscal years have varied by as many as two business
days.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&nbsp;Contract
wins and losses &#150; During the course of each fiscal year we may win new
contracts or lose contracts with our insurance suppliers that may have an
impact on the volume of units processed when comparing quarterly volumes.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&nbsp;Change
in the market share of our insurance suppliers &#150; During the course of each
fiscal year our insurance customers may grow or decline in the total volume of
salvage units that each processes depending on their respective market
share.&#160; To the extent that an existing
insurance customer grows in market share there will be a corresponding increase
in volume of salvage units processed from that customer and to the extent an
existing insurance supplier declines in market share we will see a reduction in
salvage units from that customer.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&nbsp;Accident
frequency &#150; The frequency of accidents will have a direct impact on the number
of salvage cars we process.&#160; However, information
on accident frequency is not available on a contemporaneous basis and,
accordingly, conclusion on the impact accident frequency has on quarterly
volume cannot be derived.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)&nbsp;Salvage
frequency &#150; The percentage of cars salvaged rather than repaired will have a
direct impact on the number of salvage cars we process.&#160; Salvage frequency is affected by the
relationship between repair costs, the pre-accident value of an automobile (or
used car pricing) and the net proceeds generated at auction.&#160; Information on salvage frequency is not
available on a contemporaneous basis and, accordingly, conclusion on the impact
salvage frequency has on quarterly volume cannot be derived.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)&nbsp;Growth
in volume from non-insurance suppliers including (i)&nbsp;banks and finance
companies which primarily liquidate repossessed vehicles, (ii)&nbsp;charities, (iii)&nbsp;franchise
and independent car dealerships, (iv)&nbsp;individual consigners, (v)&nbsp;fleets,
(vi)&nbsp;rental car companies and in some states (vii)&nbsp;the general public
can have an impact on both volume and revenue per transaction as revenue yields
for each class of supplier vary significantly.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company supplementally advises the Staff that management has identified the
following factors as influences to the fee and service revenues we realize in
connection with vehicle processing. The Company has outlined these factors
below, most of which are discussed in the Risk Factors section of the Company&#146;s
periodic filings. To the extent management has concluded that one or more of
these factors has had an identifiable effect on fee and service revenue in a
particular period, the Company will provide a discussion of the factor(s)&nbsp;in
the MD&amp;A.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&nbsp;Commodity
pricing - Commodity pricing, particularly the per ton price for crushed car
bodies, has an impact on the ultimate selling price of vehicles sold for scrap
and vehicles to be dismantled.&#160;
Subsequent to harvesting the valuable car parts by a dismantler, the
carcass of the car will often be sold for scrap. Because a portion of our
revenue is based to some extent on the selling price of the vehicle,
fluctuations in the average selling price may lead to variations in revenue.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&nbsp;Used
car pricing - Used car pricing has an impact on the ultimate selling price of
those vehicles that are purchased for retail sale.&#160; Decreases in the overall used car pricing
will tend to reduce the resale value of vehicles that Copart processes and
reduce the amount that buyers will pay at auction.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&nbsp;Foreign
currency exchange rates - Fluctuations in foreign currency exchange rates may
have an impact on those cars being purchased for export as, for example, a
stronger dollar increases the purchase price paid in our international buyer&#146;s
local currency and may lead to a reduction in the ultimate selling price of a
vehicle.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company cannot know which cars are purchased for scrap, dismantling, resale or
for export. Accordingly, the Company cannot quantify the specific impact that
fluctuations in commodity pricing, used car pricing and foreign currency
exchange rates have on the selling price of vehicles and on the Company&#146;s
revenue.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&nbsp;Product
mix &#150; Cars remarketed on behalf of individual consigners and franchise and
independent dealerships are generally drivable and of better quality and,
accordingly, tend to sell for higher average sales prices than cars remarketed
on behalf of the insurance companies and thus have a favorable impact on the
Company&#146;s revenues.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&nbsp;Contract
mix &#150; Seller fees vary by contract.&#160;
Further, certain seller contracts call for the Company to purchase the
vehicles and resell it for our own account.&#160;
For these contracts the gross proceeds generated through the remarketing
process are included in revenue.&#160;&#160;
Accordingly, a shift in the percentage of cars sold pursuant to
contracts with either higher or lower fee schedules and/or a shift in the
percentage of cars processed pursuant to a contract requiring the Company to
purchase the vehicle will impact the Company&#146;s fee and service revenues.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Critical
Accounting Policies and Estimates, page&nbsp;44</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">3.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i></b><b><i style="font-weight:bold;">We reviewed your response to
comment 5 in our letter dated December&nbsp;17, 2008. Please describe
significant assumptions underlying your critical accounting estimates, disclose
how accurate your estimates/assumptions have been in the past and how much your
estimates/assumptions have changed in the past and provide an analysis of their
sensitivity to change based on other outcomes that are reasonably likely to
occur and would have a material effect. Refer to the Commission&#146;s Guidance</i></b><i>  <b>Regarding
Management&#146;s Discussion and Analysis of Financial Condition and Results of
Operations.</b></i></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In
response to Staff&#146;s comment, the Company notes the most significant assumptions
underlying our critical accounting estimates relate to income taxes, retained
insurance levels and allowance for doubtful accounts.&#160; The Company has provided supplemental
information for those items below:</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Income Taxes and Deferred Tax Assets</font></b></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We account for income taxes in accordance with SFAS No.109, <i>Accounting for Income Taxes</i>. We are subject to income taxes
in the US, Canada and UK. In arriving at a provision of income taxes, we first
calculate taxes payable in accordance with the prevailing tax laws in the
jurisdictions in which we operate; we then analyze the timing differences
between the financial reporting and tax basis of our assets and liabilities,
such as various accruals, depreciation and amortization. The tax effects of the
timing difference are presented as deferred tax assets and liabilities in the
consolidated balance sheet. We assess the probability that the deferred tax
assets will be realized based on our ability to generate future taxable income.
In the event that it is more likely than not the full benefit would not be
realized from the deferred tax assets we carry on our consolidated balance
sheet, we record a valuation allowance to reduce the carrying value of the
deferred tax assets to the amount expected to be realized. As of July&nbsp;31,
2008, we had approximately $0.6 million of valuation allowance arising from the
net operating losses in states where we had withdrawn our operations in prior
years. To the extent we establish a valuation allowance or change the amount of
valuation allowance in a period, we reflect the change with a corresponding
increase or decrease in our income tax provision in the consolidated income
statement.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Historically, our income taxes have been sufficiently provided to cover
our actual income tax liabilities among the jurisdictions in which we operate.
Nonetheless, our future effective tax rate could still be adversely affected by
the following factors, including the (i)&nbsp;geographical allocation of our
future earnings, (ii)&nbsp;the change in tax laws or our interpretation of tax
laws, (iii)&nbsp;the changes in governing regulations and accounting
principles, (iv)&nbsp;the changes in the valuation of our deferred tax assets
and liabilities and (v)&nbsp;the outcome of the income tax examinations. As a
result, we routinely assess the possibilities of material changes resulting
from the aforementioned factors to determine the adequacy of our income tax
provision.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Based on our results for the year ended July&nbsp;31, 2008, a one
percentage-point change in our provision for income taxes as a percentage of
income before taxes would have resulted in an increase or decrease in the
provision of approximately $2.5 million. The following analysis demonstrates,
for illustrative purposes only, the potential effect that a one
percentage-point deviation would have on our consolidated financial statements
and is not intended to provide a range of exposure or expected deviation (in
thousands, except per share data):</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="60%" style="border-collapse:collapse;width:60.0%;">
 <tr>
  <td width="44%" valign="bottom" style="padding:0in 0in 0in 0in;width:44.16%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.36%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="14%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:14.8%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">-100<br>
  Basis<br>
  Points</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.36%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="14%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:14.8%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">7/31/2008</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.36%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="14%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:14.8%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">+100<br>
  Basis<br>
  Points</font></b></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.34%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:44.16%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Provision for income taxes</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:3.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:14.8%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">90,221</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:3.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:14.8%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">92,718</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:3.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:14.8%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">95,215</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.16%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Net income</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" style="padding:0in 0in 0in 0in;width:14.8%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" style="padding:0in 0in 0in 0in;width:14.8%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">156,932</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" style="padding:0in 0in 0in 0in;width:14.8%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:44.16%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:3.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:14.8%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">159,429</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:3.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:14.8%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:3.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:14.8%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">154,435</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="44%" valign="top" style="padding:0in 0in 0in 0in;width:44.16%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Diluted earnings per share</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" style="padding:0in 0in 0in 0in;width:14.8%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.77</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" style="padding:0in 0in 0in 0in;width:14.8%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.75</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" style="padding:0in 0in 0in 0in;width:14.8%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.72</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.34%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

</div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Effective August&nbsp;1, 2008, we adopted Financial Interpretation No.&nbsp;48,
<i>Accounting for Uncertainty in Income
Taxes-an interpretation of FASB Statement No.&nbsp;109</i>
(FIN&nbsp;48). FIN&nbsp;48 contains a two-step approach to recognizing and
measuring uncertain tax positions accounted for in accordance with SFAS No.&nbsp;109,
<i>Accounting for Income Taxes</i>. The
first step is to evaluate the tax position for recognition by determining if
the weight of available evidence indicates that it is more likely than not that
the position will be sustained on audit, including resolution of related
appeals or litigation processes, if any. The second step is to measure the tax
benefit as the largest amount that is more than 50% likely of being realized
upon settlement.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Although we believe we have adequately reserved for our uncertain tax
positions, no assurance can be given that the final tax outcome of these
matters will not be different. We adjust these reserves in light of changing
facts and circumstances, such as the closing of a tax audit or the refinement
of an estimate. To the extent that the final tax outcome of these matters is
different than the amounts recorded, such differences will impact the provision
for income taxes in the period in which such determination is made. The
provision for income taxes includes the impact of reserve provisions and
changes to reserves that are considered appropriate, as well as the related net
interest settlement of any particular position could require the use of cash.
In addition, we are subject to the continuous examination of our income tax
returns by various taxing authorities, including the Internal Revenue Service
and U.S. states. We regularly assess the likelihood of adverse outcomes
resulting from these examinations to determine the adequacy of our income taxes
provision.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Retained Insurance Liabilities</font></b></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We are partially self-insured for certain losses related to medical,
general liability, workers&#146; compensation and auto liability. Our insurance
policies are subject to a $250,000 deductible per claim, with the exception of
our medical policy which is $150,000 per claim.&#160;
In addition, each of our policies contains an aggregate stop loss which
limits our ultimate exposure.&#160; Our
liability represents an estimate of the ultimate cost of claims incurred as of
the balance sheet date. The estimated liability is not discounted and is
established based upon analysis of historical data and actuarial estimates. The
primary estimates used in the actuarial analysis include total payroll and
revenue.&#160; Our estimates have not
materially fluctuated from actual results.&#160;&#160;
While we believe these estimates are reasonable based on the information
currently available, if actual trends, including the severity of claims and
medical cost inflation, differ from our estimates, our consolidated financial
position, results of operations or cash flows could be impacted. The process of
determining our insurance reserves requires estimates with various assumptions,
each of which can positively or negatively impact those balances. The total
amount reserved for all policies is approximately $5.3 million as of July&nbsp;31,
2008. If the total number of participants in the medical plan changed by 10% we
estimate that our medical expense would change by approximately $1.0 million
and our medical accrual would change by approximately $200,000. If our total
payroll changed by 10% we estimate that our workers compensation expense would
change by approximately $100,000 and our accrual for workers compensation
expenses would change by $100,000. A 10% change in revenue would change our
insurance premium for the general liability and umbrella policy by less than
$25,000.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Allowance for Doubtful Accounts</font></b></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We maintain an allowance for doubtful accounts in order to provide for
estimated losses resulting from disputed amounts billed to sellers or buyers
and the inability of our sellers or buyers to make required payments. If
billing disputes exceed expectations and/or if the financial condition of our
sellers or buyers were to deteriorate, additional allowances may be
required.&#160; The allowance is calculated by
taking both seller and buyer accounts receivables written off during the
previous 12 month periods as a percentage of the total accounts receivable
balance, i.e. total write-offs/total accounts receivable </font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(write-off percentage).&#160; The
following analysis demonstrates, for illustrative purposes only, the potential
effect that a one percentage-point deviation change in the write-off percentage
would have on our consolidated financial statements and is not intended to
provide a range of exposure or expected deviation (in thousands, except per
share data):</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<div align="center">

<table border="0" cellspacing="0" cellpadding="0" width="70%" style="border-collapse:collapse;width:70.0%;">
 <tr>
  <td width="43%" valign="bottom" style="padding:0in 0in 0in 0in;width:43.74%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="14%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:14.9%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">-100<br>
  Basis<br>
  Points</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="14%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:14.9%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">7/31/2008</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.4%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="14%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:14.9%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">+100<br>
  Basis<br>
  Points</font></b></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.36%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="43%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:43.74%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Allowance for doubtful accounts</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:3.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:14.9%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,296</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:3.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:14.9%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,600</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:3.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:14.9%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2,904</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.74%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" style="padding:0in 0in 0in 0in;width:14.9%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" style="padding:0in 0in 0in 0in;width:14.9%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" style="padding:0in 0in 0in 0in;width:14.9%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="43%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:43.74%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Net income</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:3.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:14.9%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">157,123</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:3.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:14.9%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">156,932</font></p>
  </td>
  <td width="3%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:3.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:14.9%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">156,741</font></p>
  </td>
  <td width="1%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="43%" valign="top" style="padding:0in 0in 0in 0in;width:43.74%;">
  <p style="margin:0in 0in .0001pt 10.0pt;text-indent:-10.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Diluted earnings per shares</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" style="padding:0in 0in 0in 0in;width:14.9%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.75</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" style="padding:0in 0in 0in 0in;width:14.9%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.75</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.4%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="bottom" style="padding:0in 0in 0in 0in;width:14.9%;">
  <p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.74</font></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.36%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

</div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Financial
Statements</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Note (1)&nbsp;Summary
of Significant Accounting Policies, page&nbsp;64</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Revenue
Recognition, page&nbsp;65</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">4.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i></b><b><i style="font-weight:bold;">We reviewed your response to
comments 9 and 14 in our letter dated December&nbsp;17, 2008. We understand
that you remarket vehicles on behalf of sellers and for your own account
through your internet selling platform. We also understand that you sell
vehicles in North America primarily as an agent on behalf of insurance
companies deriving revenue from transaction fees and services and that you
primarily operate on principal basis in the UK purchasing and reselling
vehicles. As such, the basis for your conclusion that revenues from remarketing
of vehicles on behalf of sellers and revenues from selling acquired vehicles
comprise a single class of revenues from services rendered is still unclear to
us. It seems that you should separately state revenues from services and
revenues from resale of acquired vehicles as well as related costs and expenses
in accordance with Rule&nbsp;5-03(b)&nbsp;of Regulation S-X. Please provide us
with further support for your conclusion that sales and the related cost of
vehicles sold for your own account, which appear to represent tangible products,
should be combined with remarketing and other revenues from services in light
of the disclosures throughout the document.</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company supplementally informs the Staff that there is no substantive
distinction between vehicles processed and remarketed on behalf of sellers as
their agent or vehicles sold on our own account in terms of how they are
processed and remarketed since all vehicles are collected, stored, processed
and remarketed in the same manner.&#160; The
main supply of vehicles, whether those to be remarketed on our own account or
on behalf of sellers, is also the same (i.e., primarily larger insurance
companies needing to dispose of salvaged vehicles).&#160; However, as described further below, certain
contracts with UK insurance companies were inherited from recent acquisitions
and require the Company to purchase the vehicle just prior to it being
remarketed through the auction process.&#160;
These UK contracts represent the substantial majority of vehicles sold
on our own account.&#160; All vehicles are
remarketed to the same buyers, utilizing the Company&#146;s internet selling
platform Virtual Bidding Second Generation (VB</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">2</font>),
under the same terms and conditions.</p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
net proceeds per transaction derived from vehicles sold on behalf of an
assignor and those sold for our own account per transaction are similar. Net
proceeds are either, total revenue for an agency model transaction or revenue
less the cost of the vehicle for a purchase model transaction.&#160; In calendar year 2008, there was a difference
of less than 7% in the UK between the net proceeds derived from vehicles sold
on behalf of an assignor and those sold for our own account.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>
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<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Further,
the time period in which the Company technically has ownership of the vehicle
is short.&#160; In our fourth quarter of
fiscal year 2008, 66.5% of the vehicles that we sold for our own account were
purchased and resold within 9 days.&#160;&#160; The
remarketing process is the same regardless of whether the vehicle is sold on
consignment or remarketed for our own account and, accordingly, the time period
between the settlement with the policy holder by the insurance company and the
award of the vehicle to the high bidder through the auction process is the
same.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Finally,
the contracts with insurance companies that require the Company to purchase the
vehicle were inherited from companies acquired in fiscal years 2007 and
2008.&#160; The Company&#146;s intention is to
migrate the inherited contracts from the &#147;purchase model&#148; to the &#147;agency model&#148;
and, in fact, during our fourth quarter of last fiscal year and in our current
fiscal quarter, the Company migrated two major purchase model contracts to the
agency model.&#160; While the contacts were
changed with respect to ownership of the vehicle at the time of sale and the
identity of the ultimate seller, the services performed by the Company,
collection of the vehicle, storage and processing methodologies, and
remarketing platform remained unchanged.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company has considered the requirement pursuant to rule&nbsp;5-03(b)&nbsp;to
separately present different classes of revenues and related costs on the
Company&#146;s statements of income.&#160; Given
the above considerations, the Company has determined that revenues recognized
related to the remarketing of vehicles on behalf of sellers or the Company&#146;s
own account comprise a single class of revenues and represents the most
meaningful presentation in the consolidated statements of income because the
services provided and the processes implemented are identical.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">5.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i></b><b><i style="font-weight:bold;">We reviewed your response to
comment 11 in our letter dated December&nbsp;17, 2008. Please tell us whether
you also use the relative fair value method to allocate arrangement
consideration to separate units of accounting when there is objective and
reliable evidence of fair value for all units of accounting in an arrangement.
If so, tell us the circumstances when there is objective and reliable evidence
of fair value of each unit of accounting and when there is no objective and
reliable evidence of fair value of delivered items. Otherwise, please explain
to us why prices you charge for the resale services sold separately are not
representative of fair value. Refer to paragraph 16 of EITF 00-21. In addition,
if applicable, clarify your accounting policy in future filings.</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company supplementally informs the Staff that the Company has no instances
where it uses the relative fair value method to allocate arrangement
consideration to separate units of accounting.&#160;
There are two instances in which the Company has multiple elements in an
arrangement.&#160;&#160; The first instance
involves (1)&nbsp;the remarketing of the vehicle on behalf of the seller, and (2)&nbsp;the
collection of the gross proceeds on the seller&#146;s behalf.&#160; In this arrangement the Company defers the
recognition of the related service revenue (seller fees) until the last step in
the arrangement, the collection of the gross proceeds from the buyer, is
completed.&#160; As the service provided
related to the collection of the gross proceeds on the seller&#146;s behalf is not
sold on a stand-alone basis by the Company and as the Company has not
identified stand-alone transactions of a similar nature provided by third
parties, the Company has concluded that it is unable to determine objective and
reliable evidence of fair value for this service. Accordingly, the Company has
determined that these two services cannot be accounted for as separate units of
accounting. The Company recognizes the seller fees as revenue upon collection
of the gross proceeds on the seller&#146;s behalf.&#160;
The second instance of an arrangement containing multiple elements
relating to certain &#147;buyer fees&#148; received from (1)&nbsp;a contract to sell a
vehicle to a buyer through the internet auction process and (2)&nbsp;loading
the purchased vehicle onto the buyer&#146;s transport.&#160; These services are not sold separately by the
Company. The Company has obtained objective and reliable evidence, pursuant to
paragraph 16 of EITF 00-21, to establish the fair value of the loading element
of the arrangement, which is the undelivered element as of the close of the
auction. Paragraph 12 of EITF 00-21 states as follows:</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;&#133;there
may be cases in which there is objective and reliable evidence of the fair
value(s)&nbsp;of the undelivered item(s)&nbsp;in an arrangement but no such
evidence for the delivered item(s). In those cases, the residual method should
be used to allocate the arrangement consideration. Under the </font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">residual
method, the amount of consideration allocated to the delivered item(s)&nbsp;equals
the total arrangement consideration less the aggregate fair value of the
undelivered item(s).&#148;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As
objective and reliable evidence of fair value has been established for the
loading element, the Company uses the residual method pursuant to paragraph 12
of EITF 00-21 to allocate arrangement consideration to the revenue earned by
providing the internet auction process (the delivered element).</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Note
(14) Segments and Other Geographic Information, page&nbsp;87</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">6.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i></b><b><i style="font-weight:bold;">We reviewed your response to
comment 13 in our letter dated December&nbsp;17, 2008. Based on the information
you provided it seems that you have structured your business in five specific
geographic regions and may have more than one operating segment. Please clarify
whether you believe each of the regions identified in your response are
operating segments as defined in paragraph 10 of SFAS 131 and whether the
regions are aggregated since they exhibit similar economic characteristics and
meet the aggregation criteria in paragraph 17 of SFAS 131. If each region
represents an operating segment, please provide us with support that they have
similar economic characteristics and, in any event, provide support for your US
and Canadian operations and UK operations. In doing so, include the measure(s)&nbsp;that
your CODM uses to evaluate and allocate resources to your operating segments,
as well as revenues and gross margins, for the last five years and explain why
the information supports a conclusion that the segments exhibit similar
economic characteristics. In addition, it seems that your chief operating
decision maker may be a group as referred to in paragraph 12 of SFAS 131.
Please provide us with a copy of the annual and monthly review package given to
the CODM for the most recent year and interim period. Also provide a copy of
the package given to the Board of Directors for the same periods.</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">To
clarify, we believe that the Company has one operating segment. Under SFAS 131,
paragraph 10 &#147;[a]n operating segment is a component of an enterprise: (a)&nbsp;that
engages in business activities from which it may earn revenues and incur
expenses (including revenues and expenses relating to transactions with other
components of the same enterprise), (b)&nbsp;whose operating results are
regularly reviewed by the enterprise&#146;s chief operating decision maker to make
decisions about resources to be allocated to the segment and assess its
performance, and (c)&nbsp;for which discrete financial information is
available.&#148; Under this definition, the Company&#146;s regions are not operating
segments because the Company does not generate discrete financial information
on a regional basis, with the exception of the UK which is presented separately
due only to the fact that its financial records are maintained in a different
currency.&#160; As a result and as further supported
below, the Company believes that it has one operating segment, which represents
the remarketing of vehicles.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Willis
Johnson, the Chairman and CEO, is the sole CODM, as defined in SFAS 131. No
other corporate executive has the responsibility or authority for allocation of
the Company&#146;s resources as described below. Substantially all of the
significant elements of the Company&#146;s operating and financing processes are
centralized and directed by Mr.&nbsp;Johnson. The primary allocations of the
Company&#146;s resources are (i)&nbsp;acquisitions, (ii)&nbsp;purchases of real
estate for new facilities, and (iii)&nbsp;share repurchases.&#160; Given the centralized nature, Mr.&nbsp;Johnson
reviews consolidated operating results, consolidated cash on the balance sheet,
and expected future consolidated cash flows when allocating resources. As
described further below, the primary consideration for allocation of resources
is the Company&#146;s capacity to store and process salvaged vehicles on behalf of
its sellers.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company believes that additional information about our operations is important
to provide an understanding of how we manage our operations centrally.&#160; The Company has a network of 146 facilities
(or yards); 134 yards in the U.S., 2 yards in Canada and 10 yards in the
UK.&#160;&#160; An individual yard is principally a
storage yard for salvaged vehicles and consists of approximately 40 acres of
land surrounded by security fencing, an office building, and equipment
necessary for moving and loading the salvaged vehicles.&#160; The primary distinction between the
individual yards is the annual volume of vehicles processed.&#160; The functions of a typical yard are performed
by 20 or fewer yard employees and all yards employ the same standardized Copart
operational processes with respect to the collection, storage, processing and
delivery, or loading, of vehicles.&#160; The
yards are not involved in obtaining or </font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

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<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">negotiating
salvage vehicle supplier contracts. These contracts are negotiated and managed
by a central marketing department located at Copart&#146;s corporate headquarters.&#160; The majority of the contracts obtained by our
marketing department generate vehicle supplies from larger insurance carriers
that impact several yards and multiple regions.&#160;
The primary functions performed at each yard are to collect, receive,
and store the vehicle on behalf of the sellers and to load the vehicles on the
transport for the buyer.&#160; These tasks are
uniformly performed pursuant to processes, methodologies and timetables
established at the Company&#146;s headquarters.&#160;
The Company views its yards as a network of storage for salvage vehicles
and not as individual yards or regions.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company has over 100 nation-wide contracts with insurance companies which it
can obtain and service only because it has a network of yards covering most major
metropolitan areas.&#160; Copart believes its
expansive network of yards provides it a competitive advantage in gaining these
larger insurance company contracts.&#160; In
turn, having this large supply of vehicles for sale is then critical to
attracting buyers internationally.&#160; All
vehicles are sold on our internet selling platform VB</font><font size="1" style="font-size:7.0pt;position:relative;top:-3.0pt;">2</font>.&#160; This platform was developed
and is managed at the Company&#146;s corporate headquarters.&#160; All buyer accounts are managed and maintained
at the Company&#146;s headquarters.&#160; All
buyers are provided the same services and purchase vehicles under the same
terms and conditions.&#160;&#160; All pricing,
service offerings and products are determined by Company management at the
Company&#146;s headquarters.&#160; All information
technology systems development, architecture and feature designs are performed
solely at the Company&#146;s headquarters.&#160;
Additionally, all accounting, finance, human resources, legal, executive
management, and strategic development are conducted solely at the Company&#146;s
headquarters.</p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Although
the Company has determined that it has one operating segment and believes the
aggregation criteria are not relevant to its facts and circumstances, the
Company has provided the requested revenue and gross margin information for the
US and Canadian operations (North America) and for the UK operations on a
supplemental schedule contained in binder #5 of the Materials (as defined
below).&#160;&#160; A discussion of the similarity
of economic characteristics and aggregation criteria follows in the paragraphs
below.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Paragraph
17 of SFAS 131 provides the following guidance regarding aggregation of two or
more operating segments:</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Operating
segments often exhibit similar long-term financial performance if they have
similar economic characteristics. For example, similar long-term average gross
margins for two operating segments would be expected if their economic
characteristics were similar. Two or more operating segments may be aggregated
into a single operating segment if aggregation is consistent with the objective
and basic principles of this Statement, if the segments have similar economic
characteristics, and if the segments are similar in each of the following
areas:</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.
The nature of the products and services.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b.
The nature of the production processes.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c.
The type of customer for their products and services.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">d.
The methods used to distribute their products or provide their services.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">e.
If applicable, the nature of the regulatory environment, for example, banking,
insurance, or public utilities.</font></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
Company believes these criteria would be met based on the following evaluation:</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.
The nature of the products and services. &#160;The Company provides vehicle sellers with a
full range of remarketing services to process and sell vehicles over the
Internet through the Company&#146;s VB</font><font size="1" style="font-size:7.0pt;position:relative;top:-3.0pt;">2</font>&nbsp;Internet
auction-style sales technology. Sellers are primarily insurance companies but
also include banks and financial institutions, charities, car dealerships,
fleet operators, vehicle rental companies and the general public.&#160; The primary functions performed at each yard
are to collect, receive, and store the vehicle on behalf of the sellers and to
load the vehicles on the transport for the buyer.&#160; These tasks are uniformly performed pursuant
to processes, methodologies and timetables established and audited by teams at
the Company&#146;s headquarters. All yards provide these services, regardless of
location.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

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<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">b. The nature of the production processes</font></u>.&#160; As
described further above, the tasks of each yard, whether in North America or in
the UK, are uniformly performed pursuant to processes, methodologies and
timetables established at the Company&#146;s headquarters.</p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">c. The type of customer for the products and services</font></u>.&#160; The
Company provides vehicle sellers with a full range of remarketing services to
process and sell vehicles over the Internet through the Company&#146;s VB<font size="1" style="font-size:7.0pt;position:relative;top:-3.0pt;">2</font>&nbsp;Internet auction-style sales technology. Sellers are primarily
insurance companies but also include banks and financial institutions,
charities, car dealerships, fleet operators, vehicle rental companies and the
general public.&#160; The Company sells
principally to licensed vehicle dismantlers, rebuilders, repair licensees, used
vehicle dealers and exporters.&#160; This is
consistent for both our North America and UK operations.</p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">d. The methods used to distribute the products or provide the services</font></u>.&#160; As
described further above, all vehicles are sold on our VB<font size="1" style="font-size:7.0pt;position:relative;top:-3.0pt;">2</font>&#160;internet selling platform.&#160; This platform was developed and is managed at
the Company&#146;s corporate headquarters.&#160;
All buyers are required to pick up the purchased vehicles from the yard
where they are located.&#160; Each yard will
load the purchased vehicles onto the buyer&#146;s transport.</p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">e. If applicable, the nature of the regulatory environment, for
example, banking, insurance, or public utilities</font></u>.&#160; This
criterion is not applicable because Copart does not operate in a regulated
industry.</p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
do note that current gross margins of the North America operations compared to
UK operations do not appear to be similar.&#160;
The Company believes this is not an indication that the North America
and UK operations lack similar economic characteristics or expected long-term
average gross margins.&#160; In particular, it
should be noted that the UK operations were recently acquired and operate primarily
on the &#147;purchase model&#148;, as described further in the response to comment 4,
which reduces the historical gross margin percentage.&#160; The Company entered the UK market through a
series of acquisitions.&#160; It made its
first UK acquisition in our fourth quarter of fiscal 2007, its second UK acquisition
in our first quarter of fiscal 2008, and its third and fourth UK acquisitions
in our third quarter of fiscal 2008.&#160;&#160;
Accordingly, the Company has only two quarters that include the
operations of all of its UK acquisitions.&#160;
As part of the integration process to bring the UK yards into conformity
with Copart&#146;s standardized processes, the Company has incurred additional
expenses associated with closing down certain yards based on capacity
expectations, terminating certain leases and rationalizing the workforce.&#160;&#160; These integration costs further reduce the
historical comparability of the North America and UK operating results.&#160; As also discussed in our response to comment
4, the Company inherited the contracts that called for the purchase and resale
of the vehicles from its recent UK acquisitions.&#160; The Company&#146;s intention is to migrate the
inherited contracts from the purchase model to the &#147;agency model&#148;, as described
further in the response to comment 4.&#160; In
fact, during our fourth quarter of last fiscal year and in our current fiscal
quarter, the Company migrated two significant purchase model contracts to the
agency model.&#160; The Company expects that
over the long-term, these contract conversions and the effects of full
integration will lead to similar operating margins.&#160; Therefore, the Company believes that the
North America and UK operations would satisfy the criteria in paragraph 17 to
be considered economically similar.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company will deliver to the Staff, pursuant to its request, the
following supplemental information (the &#147;Materials&#148;) which will arrive under
separate cover scheduled for delivery on Tuesday, February&nbsp;24, 2009:</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>financial
data provided to the audit committee and board of directors for the three and
twelve month periods ended July&nbsp;31, 2008 and the three and six month
periods ended January&nbsp;31, 2009 (Binder #5);</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

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<p style="margin:0in 0in .0001pt 1.75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>internal
annual review packages provided to the CODM (Binders 1-2);</p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>internal
monthly review packages provided to the CODM (Binders 3-4);</p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>yard
capacity information reviewed by the CODM as of July&nbsp;31, 2008 and January&nbsp;31,
2009 (Binder #5); and</p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.75in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>supplemental
schedule of revenue and gross margin for North America and the UK for the last
five years (Binder #5).</p>

<p style="margin:0in 0in .0001pt 1.75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Mr.&nbsp;Johnson reviews only the sections of the Materials presenting
consolidated financial data when allocating resources. Of the more detailed
information provided in the Materials, Mr.&nbsp;Johnson reviews the yard
capacity information with respect to overall yard capacity and availability for
additional volume to service current and potential customers. Individual yard
operating results located in the internal monthly review packages contained in
the Materials are not reviewed by Mr.&nbsp;Johnson for resource
allocation.&#160; These reports are prepared
primarily for use by lower levels of management as a tool to evaluate a general
manager&#146;s ability to reduce cost per car and other controllable <font style="background:white;">variables at the yard level.&#160;&#160; </font>In addition, the Company notes that
the Materials contain separate financial packages for the UK operations.&#160; The sole reason for the separate set of UK
operation financial statements in the Materials is because the UK business is
conducted in a different currency.</font></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:0in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Definitive
Proxy Statement on Schedule 14A</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Executive
Compensation, page&nbsp;18</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Compensation
Discussion and Analysis, page&nbsp;18</font></u></i></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .75in;text-indent:-.25in;"><b><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;font-weight:bold;">7.</font></i></b><b><i><font size="1" style="font-size:3.0pt;font-style:italic;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font></i></b><b><i style="font-weight:bold;">We reviewed your response to
comment 17 from our letter dated December&nbsp;17, 2008. Please define the term
performance-based in this instance and the types of compensation which you
consider performance-based. Also, please indicate why the board believes that
performance-based compensation such as cash bonus or equity compensation should
represent a substantial portion of an executive officer&#146;s compensation package.</i></b></p>

<p style="margin:0in 0in .0001pt .75in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">We
consider &#147;performance-based&#148; compensation to be the portion of an executive&#146;s
total compensation that is determined based on (i)&nbsp;the executive&#146;s
individual contribution to the Company&#146;s strategic goals and operating results,
as in the case of discretionary cash bonuses and equity awarded in recognition
of individual performance, or (ii)&nbsp;the Company&#146;s degree of success in
meeting certain performance targets as established under the Executive Bonus
Plan.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
board of directors believes that performance-based compensation, such as cash
bonuses and equity awards, drives business performance and aligns the interests
of the executives with those of the Company&#146;s shareholders.&#160; For instance, equity awards in the form of
stock options align executive officer financial interests directly with
shareholders via stock price appreciation over the vesting period of the
options.&#160; In addition, the Company&#146;s cash
bonus program helps translate the Company&#146;s overall strategic initiatives
(which are geared toward improvement in the Company&#146;s financial strength) into
daily actions, with rewards provided to employees who accomplish their
goals.&#160; The Company will include similar
disclosures in future filings.</font></p>

<p style="margin:0in 0in .0001pt .75in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">*&#160;&#160;&#160;&#160; *&#160;&#160; &#160;&#160;*&#160;&#160;&#160;&#160;
*&#160;&#160;&#160;&#160; *</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Copart further acknowledges that:</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Copart is responsible for the adequacy and
accuracy of the disclosure in the filing;</p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Staff comments or changes to disclosure in
response to Staff comments do not foreclose the Commission from taking any
action with respect to the filing; and</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

</div>
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<div style="font-family:Times New Roman;">

<p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Symbol" style="font-size:10.0pt;">&#183;</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Copart may not assert Staff comments as a
defense in any proceeding initiated by the Commission or any person under the
federal securities laws of the United States.</p>

<p style="margin:0in 0in .0001pt .5in;text-indent:-.25in;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Please contact the undersigned at (707) 639-5000 with any questions
regarding the above.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sincerely,</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:49.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ William E. Franklin</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:49.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">William
  E. Franklin</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.58%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" valign="top" style="padding:0in 0in 0in 0in;width:49.42%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Senior
  Vice President and Chief Financial Officer</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

</div>
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