Carmel-based KAR Global (NYSE: KAR), a vehicle remarketing and technology provider, is combining its TradeRev and BacklotCars platforms into a single digital marketplace. The company says combining the two dealer-to-dealer marketplaces will increase the buyer base for sellers and diversify dealer inventory.
The company says it selected BacklotCars based on its accelerated growth and conversion, price retention and customer satisfaction performance. U.S.-based dealers will use BacklotCars, while Canadian dealers, however, will continue operating exclusively on TradeRev.
“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 says it began simultaneously migrating buyers and sellers onto BacklotCars several weeks ago to promote a “smooth, seamless transition of supply and demand.” The combined marketplace now features inventory from thousands of franchise and independent dealers around the country.
“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 says it will continue to improve BacklotCars by integrating select features and functionality from TradeRev and leveraging the digital marketplace expertise from across KAR.