GM challenges Carvana with online used car marketplace CarBravo
General Motors Co has announced that it will launch an online used vehicle marketplace called CarBravo which will allow the automaker and its dealers to challenge Carvana Co, CarMax Inc and others profiting from the sale of used vehicles.
GM’s CarBravo site will bring together vehicles belonging to Chevrolet, Buick and GMC dealerships, as well as cars and trucks that GM Financial, the automaker’s consumer lending arm, selects after picking them up from car rental. or vehicle rental. GM officials said the company’s dealerships have about 400,000 used vehicles in stock.
GM said CarBravo will launch to consumers this spring.
About 40 million used vehicles are sold each year in the United States, more than double the number of new cars and trucks. Automakers are largely shielded from the profits from these sales, as well as customer information and the ability to sell recurring revenue services such as satellite radio subscriptions.
Used car prices have soared during the pandemic due to a lack of new inventory following supply chain constraints.
The $34 billion online used-car marketplace Carvana has filled the e-commerce space left open by automakers and most brick-and-mortar dealerships, giving consumers a way to buy a wide range of used vehicles from several brands and have their purchase delivered to your home. Door step. Now GM is joining auto retail chains such as AutoNation in creating online used-vehicle marketplaces to counter Carvana, whose shares have fallen nearly 50% from their peak in 52 weeks.
Steve Carlisle, head of GM’s North American operations, said Tuesday that CarBravo could outperform Carvana because of the vehicle supply controlled by GM and its dealerships.
“We think we compare pretty well to anybody else out there,” Carlisle said.
Carvana, in a statement on Tuesday, did not directly address GM’s decision, but noted that it “pioneered online car buying” and has bought and sold more than one million vehicles.
CarMax Chief Marketing Officer Jim Lyski said in a statement, “While we are still hearing about GM’s recently announced service, what they have planned is challenging.”
For the latest car news and reviews, follow TBEN.com on Twitter, Facebook and subscribe to our YouTube channel.