DALLAS -

RedBumper founder Bruce Thompson has launched a new company called CarOffer that allows dealers to buy vehicles directly from consumers online.

Through the CarOffer mobile app — which is being rolled out by the RedBumper team at this month’s NADA Convention and Expo — consumers can scan, photograph and submit vehicles for sale; then, dealers using the CarOffer tool can bid and buy these cars within certain exclusive market areas.

The company says dealers will be able to exclusively “own” certain territories thanks to CarOffer. The tool, through its proprietary algorithms, can also provide dealers with hundreds of bid requests each month.

Dealers using the tool can imbed the CarOffer widget on their own websites and advertise the brand in their respective markets.

Additionally, subscribers will also own the license of the CarOffer brand and name within their respective markets, as well.

To obtain the app, a dealer can download it from the Apple or Android Marketplace.  Then here’s how it works: based on where the customer is located, his or her bid is routed to the specific dealer who owns that territory.

Dealers can submit bids through a desktop portal or receive bid notifications in real time on their smartphones. They can also use their smartphones to submit bids.

“We’ve been testing iterations of the app under various private label partnerships”, said Ziad Chartouni, the company’s chief technology officer.  “Our partners are processing thousands of monthly transactions.  This is the real deal and it is the answer to acquiring needed inventory directly from the consumer.”

Among customers trying to sell their rides, 60 percent are thinking about getting a replacement, the company said, citing tests.

The technology from CarOffer is designed such incremental business and traffic to dealerships.

The tool will use performance-based pricing; dealers will also be charged monthly to reserve a market. Then, CarOffer will charge based on the number of bids processed.

RedBumper is launching the product at its NADA Convention booth (No. 2461). Territories will be distributed on a first-come, first-serve basis.