PRESS RELEASE: CarOffer Launches PremiumXchange™, Creating the Largest Non-Affiliated Online Pre-Owned Vehicle Exchange Desk in the U.S.
Over 10,000 enrolled dealerships enabled to exchange vehicles at pre-determined prices
ADDISON, Texas, June 06, 2022 (GLOBE NEWSWIRE) -- CarOffer, the fast-growing pre-owned vehicle trading innovator and part of the CarGurus network (Nasdaq: CARG), today announced it has launched the first national non-affiliated online pre-owned vehicle exchange desk, PremiumXchange™ (PX). PX will allow dealers to exchange vehicles with one another across the country at prices set by the dealers themselves. Utilizing CarGurus’ proprietary Instant Market Value (IMV) technology, dealers can capitalize on market disparity across regions. Differing regional demand and market dynamics greatly affect inventory value from one dealership to another. Identifying these trade scenarios instantly from a pool of hundreds of thousands of vehicles will give dealers a powerful new tool to manage their inventories.
PremiumXchange digitizes and automates dealer-to-dealer vehicle exchange on a national scale. The platform will allow dealers to purchase retail-ready inventory which could help yield favorable profit margins with quick turn times in their markets. At the same time, these dealers will be selling or exchanging front line vehicles that haven't performed well for them because of unfavorable local market dynamics. Trading this market disparity enables both dealers involved in the exchange to benefit, as each receives a vehicle much more likely to perform well in their specific markets. PX will help eliminate aged inventory issues and mitigate substantial wholesale losses.
There is tremendous regional price disparity in today’s pre-owned vehicle industry – retail values, day supply, and demand can vary significantly from market to market. With PremiumXchange, dealers can trade on that market disparity, giving them instant inventory controls and trading power. This offering automates and enhances the manual and inefficient old-school way of facilitating dealer trades by leveraging the CarOffer dealer network. PX’s ability to instantly analyze hundreds of thousands of vehicles can produce thousands of exchange scenarios that are beneficial to both parties.
Large dealer groups in the U.S. who own multiple dealerships have utilized group trade strategies for years. Using market and historical sales intelligence and affiliated group trade or exchange allows these groups to move a vehicle to the location where it’s likely to sell for the most amount of money in the quickest period of time. Non-affiliated dealers are disadvantaged, forced to manage inventory turn by simply sending their underperforming aged units to auction, realizing significant wholesale losses as a result. PremiumXchange immediately changes this situation for thousands of dealers across the U.S.
“CarOffer is leveraging its unique platform with more than 10,000 enrolled dealer partners to create the largest non-affiliated online pre-owned vehicle exchange desk/platform in the U.S. The largest dealer groups in the country have less than 400 locations, so PremiumXchange’s 10,000+ will have no rival,” said Bruce Thompson, CarOffer CEO and Founder.
PremiumXchange is designed to allow dealers a soft landing in rapidly declining or depreciating markets; conversely, in a stable market, a dealer can optimize wholesale profits on aged units by capitalizing on market disparity. Either way, the size and scale of PremiumXchange will give dealers more options than they’ve ever had to manage pre-owned inventory.
“My team and I created the very first group trade tools in 2001 with the launch of American Auto Exchange (AAX),” said Thompson. “PremiumXchange represents a totally new level of capability. Our scale and national footprint of over 10,000 enrolled dealer locations, combined with CarGurus’ unique market pricing insight, IMV, are the key elements that make PX so powerful and virtually impossible to emulate. In my opinion, PremiumXchange has the potential to be transformative,” Thompson concluded.
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.
CarGurus (Nasdaq: CARG) is a multinational, online automotive platform for buying and selling vehicles that is building upon its industry-leading listings marketplace with both digital retail solutions and the CarOffer online wholesale platform. The CarGurus marketplace gives consumers the confidence to purchase or sell a vehicle either online or in-person, and it gives dealerships the power to accurately price, effectively market, instantly acquire and quickly sell vehicles, all with a nationwide reach. The company uses proprietary technology, search algorithms and data analytics to bring trust, transparency, and competitive pricing to the automotive shopping experience. CarGurus is the most visited automotive shopping site in the U.S. (source: Comscore Media Metrix® Multi-Platform, Automotive – Information/Resources, Total Visits, Q1 2022, U.S., as of May 9, 2022).
CarGurus also 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® 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.
© 2022 CarGurus, Inc., All Rights Reserved.
Cautionary Language Concerning Forward-Looking Statements
This press release includes forward-looking statements about CarGurus, Inc. and its subsidiaries, including CarOffer, LLC (collectively referred to as “we” or “our” in this paragraph). All statements contained in this press release other than statements of historical facts, including, without limitation, statements regarding PremiumXchange, including its value proposition for dealers and potential to be transformative, as well as CarOffer’s business and strategy, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “estimate,” “expect,” “guide,” “intend,” “likely,” “may,” “will” and similar expressions and their negatives are intended to identify forward-looking statements. We have based these forward-looking statements on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations, and objectives and financial needs. These forward-looking statements are subject to a number of risks and uncertainties, including, without limitation, risks related to our growth and ability to grow our revenue; our relationships with dealers; competition in the markets in which we operate; market growth; our ability to innovate; our ability to realize benefits from our acquisitions and successfully implement the integration strategies in connection therewith; natural disasters, epidemics or pandemics, like COVID-19 that has negatively impacted our business; global supply chain challenges, the semiconductor chip shortage and other macroeconomic issues; our ability to operate in compliance with applicable laws, as well as other risks and uncertainties as may be detailed from time to time in the CarGurus, Inc. Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q and other reports filed by CarGurus, Inc. with the Securities and Exchange Commission. Moreover, we operate in very competitive and rapidly changing environments. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, we cannot guarantee that future results, levels of activity, performance, achievements or events and circumstances reflected in the forward-looking statements will occur. We are 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 our views as of any date subsequent to the date of this press release.
Kirndeep Singh, Vice President of Investor Relations