Vehicle history report provider ClearVin announced on Monday that it has collaborated with J.D. Power Valuation Services — formerly known as NADA Used Car Guide — to now deliver NADA Values data to its client base of dealers and wholesalers who buy and sell used vehicles using its product.
"With NADA Values, our customers can now view the most accurate information on a vehicle's value," ClearVin president and chief executive officer Yury Strachuk said in a news release. "This information goes beyond what a person can learn from just a visual inspection and test drive."
In addition to vehicle history, the integration of NADA Values with ClearVin's vehicle history reports gives buyers and sellers the most up-to-date value of vehicles, according to ClearVin.
ClearVin’s reports now include retail, trade-in, auction and loan values from NADA Values, which helps buyers, bid on a vehicle at auction, sell, or apply for a loan, the vehicle history report provider said.
"By adding our trusted values to the ClearVin product, customers will benefit from our market intelligence and can rest easy on their transaction decisions," James Gibson, director of business development at J.D. Power Valuation Services, said in the release.
Along with sharing some of its first-quarter sales and loss projections, online used-vehicle retailer Carvana late on Thursday announced the pricing of its initial public offering of 15 million shares of its Class A common stock at a price to the public of $15 per share.
The company said in its latest filing with the Securities and Exchange Commission that the action should yield proceeds of approximately $210.7 million or $242.0 million if the underwriters exercise their option in full to purchase additional shares of Class A common stock.
The shares began trading on the New York Stock Exchange on Friday under the symbol CVNA. The offering is expected to close on May 3, subject to customary closing conditions.
"We are honored to celebrate this milestone with our employees who have worked so hard to help us build a great car buying experience for consumers," Carvana chief executive officer and co-founder Ernie Garcia said in a news release.
"We're excited for our future, and what it holds for our company and millions of car buyers across the country," Garcia added.
Carvana has granted the underwriters a 30-day option to purchase up to 2,250,000 additional shares of Class A common stock.
Wells Fargo Securities, LLC, BofA Merrill Lynch, Citigroup Global Markets Inc. and Deutsche Bank Securities are acting as joint book-running managers for the offering. Robert W. Baird & Co., William Blair & Co., BMO Capital Markets Corp. and JMP Securities are acting as co-managers.
“We estimate, based upon an assumed initial public offering price of $15 per share (which is the midpoint of the estimated public offering price range set forth on the cover page of this prospectus), we will receive net proceeds from this offering … after deducting estimated underwriting discounts and commissions but before deducting estimated offering expenses payable by us,” the company said in the SEC filing.
“We intend to contribute the net proceeds to our wholly owned subsidiary, Carvana Sub, that will in turn acquire 18,750,000 newly-issued LLC Units (or 21,562,500 LLC Units if the underwriters exercise their option in full to purchase additional shares of Class A common stock) in Carvana Group,” the company continued.
“In turn, Carvana Group intends to apply the net proceeds it receives from us to repay all outstanding borrowings under the Verde Credit Facility, to pay expenses incurred in connection with the organizational transactions and for general corporate purposes,” the company went on to say.
“Carvana Sub will also transfer approximately 170,000 LLC Units to Ernest Garcia, II (assuming an initial public offering price of $15 per share, which is the midpoint of the estimated public offering price range set forth on the cover page of this prospectus) in exchange for his 0.1 percent ownership interest in Carvana,” the company added.
Carvana’s filing also touched on its current dividend policy
“We currently intend to retain any future earnings for investment in our business and do not expect to pay any dividends in the foreseeable future,” the company said. “The declaration and payment of all future dividends, if any, will be at the discretion of our board of directors and will depend upon our financial condition, earnings, contractual restrictions, or applicable laws and other factors that our board of directors may deem relevant.”
Expected Q1 performance
As previously mentioned, Carvana revealed some of its expected performance metrics from the first quarter.
During the three-month span that concluded on March 31, the online retailer said in the SEC filing that its projected retail sales would fall between 8,250 and 8,350 units. In the year-ago quarter, Carvana indicated its retail sales totaled 3,783 units.
Carvana attributed the sales growth in part to its market growth. The company operated in 11 markets during the first quarter of last year and in 23 markets in the opening quarter of this year.
“This increase in unit sales was also driven by growth in existing markets due to expanded inventory selection, enhanced marketing efforts, increased brand awareness and customer referrals,” Carvana said in the SEC filing.
The growth in vehicle turns pushed Carvana’s expectation for total net sales and operating revenues to be between $157.3 and $159.3 million, as compared to total net sales and operating revenues of $73.0 million in Q1 of last year.
“The increase in total net sales and operating revenues was primarily the result of the increase in unit sales,” the company said.
And perhaps the metric that might pique the interest of much of the used-vehicle industry, Carvana said it expects Q1 total gross profit to be between $9.3 million and $9.8 million, as compared to total gross profit of $4.0 million in the year-ago period.
“The expected increase in gross profit is primarily due to increased unit sales and increased used vehicle gross profit per unit, which was primarily driven by enhancements in our proprietary vehicle purchasing, pricing and logistics technology,” the company said in the SEC filing.
Despite that gross profit jump, Carvana acknowledged that total net losses are projected to rise year-over-year.
For the first quarter, the online retailer said in the SEC filing that its total net loss should be between $39.3 million and $38.3 million, as compared to total net loss of $17.3 million for the three months of 2016.
“The expected increase in net loss is primarily due to an increase in selling, general and administrative expenses associated with expansion to additional markets and investment in infrastructure and headcount to support our growth,” Carvana said.
Jumpstart Automotive Media announced an exclusive ad sales representation agreement with CarStory’s website and app, which matches car shoppers with vehicles using patented technology and datasets.
“CarStory is a rapidly growing, mobile-first experience that is focused on streamlining the car shopping process, which aligns with our strategy. They deliver the ‘whole story’ about a car and digital advertising supplements this story and helps continue the narrative to make the consumer’s discovery process more efficient," Jumpstart chief executive officer Nick Matarazzo said in a news release.
The CarStory website and app leverages data and analytics to provide customers with the information they need to make educated car-buying decisions.
CarStory uses patented technology and industry-leading analytics to facilitate a search process that results in a confident purchase decision. It said it currently has a network of more than 6,500 participating dealerships across the U.S.
“We feel it’s important to help match consumers with the right car and we do this by facilitating a faster, more efficient discovery process,” CarStory CEO John Price said. “Our partnership with Jumpstart strengthens our strategy of delivering the best data to an in-market shopper at the right moment and gives brands the opportunity to better demonstrate value, increase engagement, and sell more cars.”
Black Book announced on Tuesday that it now powers the online trade appraisal resource for NsightLive, a content engagement company that works to deliver leads to dealers through its Live content platform that creates content experiences to increase customer engagement levels.
“With Black Book’s trade appraisal engine, NsightLive is filling the void for independent auto dealers who currently do not have a trusted trade appraisal tool that can be used online,” Black Book said in a news release. “Independent dealers can level the playing field leading to more successful sales transactions, especially since a more transparent valuation of a vehicle trade reduces friction between customer and dealer.”
At one independent auto dealership, Black Book said a recently completed Beta test showed online lead conversions jump by 50 percent.
"In today's world of online-first research when shopping for a vehicle, it's critical for dealers to provide the most accurate trade appraisal possible in order to build a stronger, more trusting relationship with the customer," Black Book senior vice president of sales Jared Kalfus said. "We're excited to partner with NsightLive and we believe their pioneering online content engagement platform will be a game changer for both independent and franchised dealers."
Aside from trade appraisals powered by Black Book, the platform showcases complete dealer inventory, available credit options and dealer reviews accessible to shoppers.
NsightLive also offers dealers a Hispanic certification program, whose offerings include credit, trade, dealer reviews, community events and dealer involvement within the local Hispanic community.
"We are excited to be a marketing partner with NsightLive and its content engagement platform because it helps level the playing field for independent dealers looking to attract more customers, build stronger relationships and sell more cars and trucks," said Paul John, executive director of the Georgia Independent Auto Dealer Association. "With Black Book powering NsightLive's online trade appraisal resource, customers will receive an accurate appraisal value on their trade in, which will increase efficiency of the transaction, give the buyer more control of the process, as well as give used car buyers the confidence to complete more purchase transactions with their local independent auto dealership."
Additionally, NsightLive offers social content integration for franchised dealers seeking to increase social engagement directly on their websites.
For more information on NsightLive's "Live" digital platform, visit www.NsightLive.com.
Dominion Dealer Solutions announced on Thursday that Dominion Dealer Specialties has introduced LiveLot, a fully responsive video marketing platform that supplies auto dealers with full-service video marketing strategies and tools.
On the LiveLot mobile app, dealers can make and publish vehicle inventory videos with custom voiceovers, vehicle walkarounds and customer testimonials.
“In the past several years, the car buying process has transitioned from the brick and mortar showroom to the virtual showroom. In this more competitive environment, it is imperative that automobile dealers take full advantage of any opportunity to differentiate themselves from the competition and drive prospects to their physical locations,” Dominion inventory solutions general manager Shane Marcum said.
The new platform's dealer portal allows them to manage all of their video content in one location via a live dashboard that includes in-depth analytics for both consumer engagement and individual vehicles. Dealers can also build customizable landing pages for each of their videos.
“Our new feature-rich video offering, LiveLot, virtualizes the traditional selection and presentation steps of the 'road to the sale' and acts as an integrated part of the customer’s virtual showroom,” Dominion inventory solutions associate product manager Shelley Hoffman said. “By helping auto dealers with the shopping process, our video offerings drive prospects to the dealership lot who are engaged with the dealer’s sales team and ready to negotiate and close.”
Additionally, Dominion said each video is personally designed to maximize reach and enhance customer engagement.
For more information regarding LiveLot's offerings, visit www.drivedominion.com/livelot.
ADESA Remarketing Limited, the UK affiliate of ADESA, announced recently that by way of its successful partnership with Arval, both companies have newly collaborated with Motability Operations to lead the transition to upstream defleet remarketing in the UK.
This move allows ADESA to offer an increased volume of used vehicles on its upstream mobile technology platform built on the TradeRev mobile app, which allows dealers to participate in daily e-auctions with live bidding on a wide range of vehicles.
“ADESA’s ability to offer these much sought-after used cars gives dealers a first opportunity to access a rich mix of quality stock to meet customer demand,” Jonathan Holland, managing director of ADESA UK, said in a news release. “Our model is a proven and credible alternative to more traditional remarketing channels and provides buyers with a cost-effective, convenient and efficient solution.”
Three unique selling propositions the vehicle auction and remarketing services provider now offers in the UK include the following:
- Upstream remarketing provides the earliest possible access to vehicles as soon as a contract ends
- Appraisal services allows vendors to appraise a vehicle and bring it to market in less than 10 minutes
- White label manages rental vehicle buy-back and management car solutions for OEMs
Additionally, in less than 10 minutes, the upstream remarketing platform can both appraise and bring vehicles to market as well as personalize preferences related to the vehicles they view, according to ADESA Remarketing Limited.
Carvana has unveiled the Frisco Car Vending Machine in the Dallas area, the company’s fourth Car Vending Machine in Texas, joining the cities of Austin, Houston and San Antonio.
The Frisco Car Vending Machine, located at 5252 State Highway 121, is the fifth of its kind in the country. It stands eight stories tall, contains four delivery bays, and holds up to a total of 30 cars.
“Following the launch of our free, as-soon-as-next-day delivery service in Dallas in May 2015, we’re pleased to bring our automated Car Vending Machine to Frisco,” Carvana founder and chief executive officer Ernie Garcia said in a news release. “We hope Dallas metropolitan area residents will embrace this new and unique pick-up experience.”
After completing the eCommerce platform's purchase process online, customers living within 100 miles of the Dallas metropolitan area can pick up their vehicle from the Frisco location. Vehicle pickup at any of the company's Car Vending Machines is free for all Carvana customers.
Carvana said it will subsidize $200 in airfare and arrange white glove transportation from the airport for customers outside of the Dallas metropolitan delivery area who want to pick up their purchase in Dallas.
The Frisco Vending Machine’s hours of operation are Monday through Saturday, from 9 a.m. to 7 p.m.
NextGear Capital announced recently that it has enhanced its website by adding more tools and resources that help dealers manage their vehicle and business needs.
NextGear said its site now delivers more convenient access to information. The newly enhanced site connects dealers to increased educational resources, lending products and auction sites that accept NextGear lines of credit, according to the company.
“With dealers’ ‘need for speed’ in mind, and in response to requests for easier access to information, we revamped our website to better meet their needs,” Shane O’Dell, president of Cox Automotive Financial Solutions, said in a news release. “We are always looking for ways to help our dealer clients grow their business and retain cash flow.”
The updated site offers two key new features that make it an easy-to-use resource hub, NextGear said.
It’s new Auction Finder tool allows dealers to quickly find auto auctions that take NextGear lines of credit. Auctions can be found locally or anywhere in the country just by entering a name and state or location into the search mechanism.
A new Dealer Resources tab offers access to Cox Automotive data and research, shopper insights, best practices, research and market reports, and more.
“The new tools on NextGear Capital’s website and app help us make quicker, better decisions,” Keith Yamanaka of Chicago Cars Direct said. “We have peace of mind about our choices knowing what vehicles are moving in the marketplace and the going rates.”
Additionally, its website now offers greater visibility of the company’s product offerings along with a rotating banner that displays any of its latest updates.
SiriusXM announced on Tuesday that dealer group Rightway Automotive signed on to its Pre-Owned Program, which provides a three-month subscription to the radio company’s All Access package.
Any of the group’s customers who purchase a pre-owned vehicle with a factory-equipped satellite radio can use the service.
“Rightway is a welcome addition as we continue to grow the SiriusXM Pre-Owned Program, which now features the participation of more than 25,000 auto dealers across the country,” Gail Berger, SiriusXM vice president of auto aemarketing said in a news release.
“The SiriusXM All Access package is our most comprehensive programming offering. It adds value to Rightway’s large satellite radio equipped pre-owned vehicle inventory, and allows us to reach many potential new subscribers by giving them access to our world class content both in and out of the vehicle.”
The package includes talk programming, live professional and college sports coverage, commercial-free music, comedy and various exclusive online-only channels.
Programming is also accessible outside the vehicle on the SiriusXM app and online at siriusxm.com.
“Rightway is excited to work with SiriusXM to provide additional value for our customers,” Rightway operations director Chase Dicken said. “SiriusXM offers an unparalleled lineup of music, entertainment and sports programming, and Rightway customers can now drive off our lots with it all at their fingertips.”
Additionally, Rightway customers who purchase any vehicle equipped with SiriusXM’s Infotainment services will have three months of access to the in-vehicle information, which features traffic and weather data, fuel prices and more, according to SiriusXM.
Rightway currently operates more than two dozen dealerships located in Michigan, Illinois, Ohio and Georgia.
For additional information about the Pre-Owned Program, visit www.siriusxmdealerprograms.com.
EVOX Images has launched the 6.0 version of its free virtual reality app RelayCars, which features an expansive and high-quality VR automotive library that allows users to tour the interior and exterior of more than 700 vehicles with Samsung Gear VR.
Since its inception, the app has been downloaded more than 900,000 times, according to EVOX.
“We are excited to bring consumers the most comprehensive automotive VR application on the market and enhance the way people buy cars,” EVOX chief executive officer David Falstrup said in a news release. “Our goal is to make you feel like we just put you in the driver’s seat of your favorite car. RelayCars 6.0 features coverage for every model in our vast library, giving consumers access to an unprecedented number of vehicles, completely free on the app store.”
Through six different virtual showrooms, the app lets users explore more than 700 make and models that have been on the market since 2015.
EVOX utilizes its 360-degree imaging to power its new virtual reality technology.
Currently, it supplies automotive imaging to more than 20,000 dealer websites and the top automotive websites, according to the company.
“Within the past year, the EVOX VR team has extended technology offerings with the introduction of showrooms, virtual cinema, vehicle configurator capability, VR product clinics, and more,” EVOX said. “These new virtual shopping features will benefit dealers by building customer engagement and driving store traffic.”
RelayCars 6.0 is now available on the Oculus Samsung Gear VR Store.
To learn more, visit evoxvr.com on your smartphone, and view with Google Cardboard and similar VR mobile headsets.
