CarOffer’s Dealer Enrollments Soar as its Instant Used Vehicle Trading Platform Provides Much Needed Inventory Supply

Rhea-AI Summary

CarOffer achieved a record of over 1,400 new dealer enrollments on its platform in March and April 2021, reflecting the growing demand for pre-owned vehicles. This automated wholesale vehicle trading platform saw a transaction volume increase of more than 50% in the same period. Additionally, Scott Johnston was appointed as Chief Operating Officer to oversee operations and strategic initiatives as the company continues to grow. The platform enhances operational efficiency for dealers by facilitating nationwide trading and inventory management.

Positive

• Achieved record dealer enrollments over 1,400 in March and April 2021.
• Transaction volume increased by more than 50% over the last two months.
• Appointment of Scott Johnston as COO to drive growth and operational strategy.

Negative

• None.

More than 1,400 New Dealer Enrollments in March and April; Scott Johnston Named Chief Operating Officer

ADDISON, Texas, May 21, 2021 (GLOBE NEWSWIRE) -- CarOffer, the fast-growing inventory acquisition innovator and part of the CarGurus network (Nasdaq: CARG), today shared it reached record-breaking levels of dealer enrollment on its automated instant wholesale vehicle trade platform. The CarOffer platform launched in August 2019 and has emerged to become a much-needed, simplified and efficient solution for dealers to acquire pre-owned inventory, especially in the face of a pandemic-fueled rise in pre-owned demand and new car chip shortages. Dealer enrollment in the platform, which enables dealers to buy and sell vehicles using real-time instant offers, totaled more than 1,400 new dealer rooftops¹ in March and April, the highest level of enrollment over any two-month period to date.

“The unprecedented demand for used vehicles is a constant source of stress for every dealer today. Dealers struggle with how to source used vehicles beyond their local market and with operational efficiency to maximize profitability,” says Bruce Thompson, founder and CEO of CarOffer. “The CarOffer platform gives dealers access to used vehicles not just in their vicinity, which is often limited, but regionally and even nationally. Beyond the number of dealers jumping onto our platform, our transaction volume² has increased an average of more than 50% over the last two months, and May is off to an even better start. The more dealers on the platform that are buying and selling, the more options there are to acquire used inventory and offload aged vehicles. We are thrilled to offer shelter in the ongoing used inventory struggle.”

The CarOffer platform works much like an online stock trading application, mimicking the 24/7 ability to set buy or sell preferences and let the automated system source vehicles or buyers.

• To buy vehicles, dealers can place limit orders and quotas for units they wish to acquire through a user-friendly interface that allows them to set desired pricing, equipment, mileage and condition of the vehicles they want to purchase; the automated technology fulfills the orders seamlessly.
• To sell vehicles, dealers simply login to see pending live offers on their inventory units and accept offers they want and check out via a familiar shopping cart checkout process. The system automatically places binding offers on hundreds of thousands of vehicles each day, creating the first instant liquidity trading platform for vehicles.

All CarOffer dealer customers benefit from a streamlined logistical support process that includes the handling of transportation, titling, and inspections all delivered on one bill of sale. This facilitates nationwide trading to maximize inventory selection and efficiency.

Scott Johnston Appointed as Chief Operating Officer

As CarOffer continues to grow its business and deepen its collaboration with CarGurus, which acquired a 51% stake in the company this past January, the company also announced the appointment of Scott Johnston as Chief Operating Officer (COO), effective immediately.

In his new role, Johnston will oversee all CarOffer operations, customer service and support. Additionally, he’ll continue to oversee and execute strategic initiatives of the company, ensuring resources are matched to product and operational growth goals.

“I’ve had the pleasure of working with Scott for several years and his expertise and insights have helped fuel our successful growth trajectory,” says Thompson. “In the more than 25 years of starting and running companies, I’ve never been around a better operator. He deserves a tremendous amount of credit for what CarOffer has become and will be in the future.”

Johnston previously served two years as CarOffer’s Chief Strategy and Partnerships Officer, where he played a critical role in managing operational activities and overseeing third party partnerships, as well as the company’s most recent partnership with CarGurus. Before the launch of CarOffer, Johnston served as Vice President of Operations for Pearl Technology Holdings, also led by Thompson, and oversaw the rollout of the Pearl products VehicleXchange, Pearl Proximity, ShowroomXpress and Pearl360. Prior to that, he was with CDK Global for 22 years where he held multiple leadership roles in Implementation and Business Operations.

“I am very excited for this opportunity. I believe CarOffer truly differentiates how dealers buy and sell vehicles,” states Johnston. “It’s a privilege to work with such a talented team of associates who are dedicated to helping our dealer customers become even more successful.”

About CarOffer
CarOffer is the automotive industry’s leading inventory management platform for modern day wholesaling that allows dealers and dealer groups to buy, sell, and trade with automation and ease. Leveraging the power of data, national scale, and the company’s proprietary Buying Matrix™ technology, the platform helps dealers acquire and exchange used inventory more efficiently. CarOffer is part of the CarGurus network (Nasdaq: CARG). For more information, visit www.caroffer.com.

About CarGurus
CarGurus (Nasdaq: CARG) is a leading global, online automotive marketplace connecting buyers and sellers of new and used cars. The company uses proprietary technology, search algorithms and data analytics to bring trust and transparency to the automotive search experience and help users find great deals from top-rated dealers. CarGurus is the most visited automotive shopping site in the U.S. (source: Comscore Media Metrix® Multi-Platform, Automotive – Information/Resources, Total Audience, Q1 2021, U.S. (Competitive set includes: CarGurus.com, Autotrader.com, Cars.com, TrueCar.com)). In addition to the United States, CarGurus operates online marketplaces under the CarGurus brand in Canada and the United Kingdom. In the United States and the United Kingdom, CarGurus also operates the Autolist and PistonHeads online marketplaces, respectively, as independent brands. CarGurus also holds a majority stake in CarOffer, a digital wholesale marketplace based in Addison, Texas. To learn more about CarGurus, visit www.cargurus.com.

CarGurus® is a registered trademark of CarGurus, Inc., and CarOffer® is a registered trademark of CarOffer, LLC. All other product names, trademarks and registered trademarks are property of their respective owners.

© 2021 CarGurus, Inc., All Rights Reserved.

Cautionary Language Concerning Forward-Looking Statements
This press release includes forward-looking statements about CarGurus, Inc. and its consolidated affiliates (collectively, the “Company”). All statements contained in this press release other than statements of historical facts, including, without limitation, statements regarding Mr. Johnston’s appointment as Chief Operating Officer and the Company’s business and strategy are forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties, which could cause them to differ materially from actual results. Information concerning those risks is available in the “Risk Factors” section of the CarGurus, Inc. Quarterly Report on Form 10-Q, filed on May 7, 2021 with the Securities and Exchange Commission. The Company is under no duty to update any of these forward-looking statements after the date of this press release to conform these statements to actual results or revised expectations, except as required by law. You should, therefore, not rely on these forward-looking statements as representing the Company’s views as of any date subsequent to the date of this press release.

Media Contact:
Alison Miley
alison@avprvt.com
Phone: 804.258.3088

¹ Reflects CarOffer enrolled dealer rooftops. CarOffer enrolled rooftops are those for which CarOffer and the applicable dealer have signed an enrollment agreement to participate on the CarOffer platform and CarOffer has entered such dealer’s rooftops in its sales management system.
² Transaction volume includes dealer-to-dealer transactions, OfferGuard, and 45-Day Guarantees.

FAQ

What were the dealer enrollment numbers for CarOffer in March and April 2021?

CarOffer registered over 1,400 new dealer enrollments in March and April 2021.

Who was appointed as Chief Operating Officer of CarOffer?

Scott Johnston was appointed as Chief Operating Officer of CarOffer.

How much did CarOffer's transaction volume increase recently?

CarOffer's transaction volume increased by more than 50% over the last two months.

What is the significance of CarOffer's platform for dealers?

The CarOffer platform allows dealers to source used vehicles more efficiently through a national trading network.