Dealers may have a solution to their inventory woes with CarLotz as the company focuses on expansion while also securing plans to go public this quarter. CarLotz has attracted investment backing from a couple of well-known retail automotive giants you may know, McLarty Diversified Holdings, founded by Franklin McLarty, former CEO of one of the largest U.S. automotive dealership groups, and Rick Wagoner, former CEO of General Motors.
CarLotz is a consignment and remarketing service for vehicles with an online platform and eight brick and mortar locations. On today’s show, we’re pleased to welcome the Chief Operating Officer of CarLotz, John Foley to discuss the company’s operations and potential solutions for dealers.
Foley opens the conversation by sharing details about what CarLotz does. Traditionally, dealers have to source their inventory in a competitive market, assuming all the risk that comes with it. However, CarLotz is sourcing inventory in a noncompetitive market by taking it on consignment. Foley says that CarLotz sellers are fleet management companies, banks, credit unions, rental companies, and OEMs. They bring their vehicles, and they receive retail proceeds.
Carlotz currently has eight locations in Florida, Illinois, North Carolina, Virginia, and Texas. Foley says the company wants to continue growing by three to five new hubs per quarter for the next five years. CarLotz will look to expand into regions such as the Northeast and the Pacific Northwest where its presence has yet to be felt.
CarLotz is currently the only consignment-to-retail platform. Foley says the company is very proud of what they’ve been able to build. He says the company has received great feedback from clients who have used their service to sell vehicles. Foley also says he doesn’t foresee any dealers taking on the same business model as Carlotz simply because the business shift would be monumental.
Foley concludes the conversation acknowledging that digital retailing is the future. He says that the company has worked hard to make the online experience as user-friendly as possible. Foley says CarLotz has room to grow in this area and it’s always looking for ways to improve the buying and selling experience.
Did you enjoy this interview with John Foley? Please share your thoughts, comments, or questions regarding this topic with host Jim Fitzpatrick at jfitzpatrick@cbtnews.com.
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