General Motors is launching a new app for purchasing used cars, putting it in competition with other technology-heavy used car dealers such as Carvana.,
And with vehicle information aggregators like Cars.com.
GM (ticker: GM) is introduced CarBravo, an online platform that connects used car buyers with the company as well as GM dealers.
Steve Carlisle, GM’s executive vice president and president of GM North America, said in a company news release, “Carbravo customers have more options and access to shop a significantly expanded inventory of both the dealer and GM’s national central stock of used vehicles.” will provide.”
Importantly, used car buyers can also shop for non-GM makes and models on the platform. “Carbravo is designed to give customers the convenience to shop where they want, wherever they want – online, at dealerships or both.”
One risk of GM getting into the used cars business is competing with its own dealer network, but it looks like CarBravo will grow the automaker’s existing dealer business. “Used vehicles are an important part of our business,” said Todd Ingersoll, dealer principal of Ingersoll Auto in Danbury, Connecticut, in the news release. Their dealership participated in the CarBravo pilot program. “We are excited to join GM to continue to exceed our customers’ expectations and deliver a world-class experience.”
This means existing online dealers and car data providers such as Carvana (CVNA), Vroom (VRM) and Cars.com (CARS) could have the biggest impact.
CarBravo news is not affecting any of these stocks yet. All were essentially flat in premarket trading. The S&P 500 and Dow Jones Industrial Average futures were up 0.1% and 0.2%, respectively.
The news has the potential to affect traditional auto dealers as well. Those stocks, including AutoNation (AN) and CarMax (KMX), aren’t moving in premarket trading either.
GM stock, on the other hand, is gaining marginally. Shares rose about 1.1% to about $62.15 per share in premarket trading.
The stock’s short move may indicate that investors are thinking of CarBravo as an enhancement to the existing dealer network, versus something that will materially move the used car market share forward.
The CarBravo should be up and running in the spring.
Write to Al Root at [email protected]