CarOffer said Monday it has launched a national non-affiliated online used-car exchange desk called PremiumXchange (or PX), where dealers throughout the country can exchange cars with one another at prices determined by those dealers.
Through the Instant Market Value technology from CarOffer parent CarGurus, dealers can use PX to take advantage of price disparity from region to region.
In other words, a car one dealer has in stock could fetch more and be in greater demand in another market; PX helps the dealer maximize those opportunities and/or acquire the vehicles that would perform well in their market.
“Differing regional demand and market dynamics greatly affect inventory value from one dealership to another,” CarOffer said in a news release. “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.”
The platform is designed to digitize and automate dealer-to-dealer vehicle exchanges nationally. PX gives dealers a way to buy retail-ready units that would generate strong profit margins with quick turn times in their market.
“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,” the company explained. “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.”
As such, the platform aims to aid in cutting aged inventory issues and wholesale losses.
“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,” CarOffer founder and chief executive officer Bruce Thompson said in a news release.
Thompson added: “My team and I created the very first group trade tools in 2001 with the launch of American Auto Exchange (AAX). 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.”
CarGurus expands Instant Max Cash Offer to 5 more states
In related news, CarGurus announced in late May that its CarGurus Instant Max Cash Offer platform has launched in five more states: Nevada, Utah, New Mexico, Colorado, and Washington.
“With CarGurus Instant Max Cash Offer, both consumers and dealers have benefitted tremendously from its ease of use, and we’re building on this incredible momentum with this latest geographic expansion,” CarGurus president and chief executive officer Sam Zales said in a release. “By harnessing CarOffer’s Buying Matrix technology, we’ve been able to offer a hassle-free way for consumers to access top-dollar bids and for dealers to obtain new vehicles.”