BacklotCars and TradeRev Combine To Form Streamlined Dealer-to-Dealer Marketplace

Rhea-AI Summary

KAR Global (NYSE: KAR) has merged its TradeRev and BacklotCars platforms into one digital marketplace to enhance dealer-to-dealer sales. U.S. dealers will transition to BacklotCars, which has shown strong growth, offering sellers enhanced conversion rates and lower fees. The combined platform aims to provide a larger inventory and buyer base, facilitating easier wholesale transactions. Ongoing integration will enhance BacklotCars with features from TradeRev, leveraging KAR's extensive physical and digital assets.

Positive

• The consolidation aims to create the largest dealer-to-dealer marketplace in the U.S.
• BacklotCars has demonstrated accelerated growth, offering higher conversion and proceeds for sellers.
• Integrated features will enhance user experience and streamline transactions across the platforms.

Negative

• None.

CARMEL, Ind., Feb. 17, 2021 /PRNewswire/ -- KAR Auction Services, Inc. d/b/a KAR Global (NYSE: KAR), a global vehicle remarketing and technology solutions provider, is combining the company's TradeRev and BacklotCars platforms into a single digital marketplace. U.S.-based dealers will migrate to BacklotCars, while Canadian dealers will continue operating exclusively on TradeRev. The company is combining the two fast-growing dealer-to-dealer marketplaces in the U.S. to provide sellers access to the largest buyer base possible and give buyers access to greater, more diversified dealer inventory. The company selected BacklotCars based on its accelerated growth and high performance in terms of conversion, price retention and customer satisfaction.

"We're excited to give U.S. dealers the best of both worlds by combining these platforms into a single, consolidated marketplace," said Peter Kelly, president of KAR. "Since the acquisition of BacklotCars, we've surveyed our dealers and performed extensive analysis to develop the very best solution for our dealers. BacklotCars delivers sellers higher conversion and consistently higher proceeds than a wholesaler, physical auction or other dealer-to-dealer platform. And for buyers, BacklotCars offers fees as low as $100, a fully transparent bidding environment, condition reports based on independent mechanical inspections and a 5-day guarantee on major items."

The company began simultaneously migrating buyers and sellers onto BacklotCars several weeks ago to ensure the smooth, seamless transition of supply and demand. The combined marketplace now features inventory from thousands of franchise and independent dealers nationwide, and nearly 80% of the inventory is sold to dealers outside of the seller's local market. Buying dealers also have access to BacklotCars' integrated "Float" floorplan financing and one-click vehicle logistics and delivery options. And the company has combined sales and operations teams to rapidly onboard and activate new and existing customers and ensure "first week" success for every buyer and seller.

"BacklotCars is all about making wholesale easy so our dealers can be more successful," said Justin Davis, co-founder and president of BacklotCars. "We'll inspect and launch your cars from your lot whenever it works for you—no fees, no risk and no hassles, guaranteed. And for buyers, say goodbye to logging in and out of an app all day to keep up with multiple timed auctions. BacklotCars' bid-ask marketplace lets you browse and buy on your schedule and still closes most deals in under one day."

Over the next several months, the company will continue to enhance BacklotCars by integrating select features and functionality from TradeRev and leveraging the broad digital marketplace expertise from across KAR. This will include options for utilizing the company's network of 59 ADESA physical locations for reconditioning, storage, logistics and auction sales.

"Our combination of digital and physical assets is unmatched in the industry and provides dealers with options you can't get from a digital platform alone," said Kelly. "We're excited to introduce these capabilities to BacklotCars' dealers and continue leveraging our footprint for the benefit of our entire dealer network."

KAR Contacts
Media Inquiries:	Analyst Inquiries:
Tobin Richer	Mike Eliason
(317) 249-4521	(317) 249-4559
tobin.richer@karglobal.com	mike.eliason@karglobal.com

About KAR
KAR Auction Services, Inc. d/b/a KAR Global (NYSE: KAR), provides sellers and buyers across the global wholesale used vehicle industry with innovative, technology-driven remarketing solutions. KAR Global's unique end-to-end platform supports whole car, financing, logistics and other ancillary and related services, including the sale of nearly 3.1 million units valued at approximately $30 billion through our auctions in 2020. Our integrated physical, online and mobile marketplaces reduce risk, improve transparency and streamline transactions for customers in about 75 countries. Headquartered in Carmel, Indiana, KAR Global has employees across the United States, Canada, Mexico, Uruguay, U.K. and Europe. For more information and the latest KAR Global news, go to www.karglobal.com and follow us on Twitter @KARspeaks.

 

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SOURCE KAR Global

FAQ

What is the recent development involving KAR (NYSE: KAR)?

KAR Global has combined its TradeRev and BacklotCars platforms into a single digital marketplace.

How will the merger of TradeRev and BacklotCars affect U.S. dealers?

U.S. dealers will migrate to the BacklotCars platform to benefit from enhanced sales opportunities.

What are the benefits of the new combined marketplace for sellers?

Sellers will enjoy higher conversion rates and access to a larger buyer base.

What changes will Canadian dealers experience due to this merger?

Canadian dealers will continue to operate exclusively on the TradeRev platform.

How will KAR Global enhance the BacklotCars platform post-merger?

KAR plans to integrate select features from TradeRev and leverage its digital marketplace expertise.