GM challenges Carvana with CarBravo Used car market online | Invest News

DETROIT (Reuters) -General Motors Co has announced the launch of a new online used vehicle marketplace called CarBravo that will allow the automaker and its dealers to challenge Carvana Co, Carmax Inc and others who are profiting from the sale of used vehicles.

GM’s CarBravo site to bring together vehicles owned by Chevrolet, Buick and GMC dealerships, as well as cars and trucks that GM Financial, the automaker’s consumer finance arm, controls after taking them over from car rental companies or vehicle rental contracts. GM officials said the company’s dealers have about 400,000 used vehicles in inventory.

GM said CarBravo will launch to consumers this spring.

About 40 million used vehicles are sold in the United States each year, more than double the number of new cars and trucks. Automakers are largely shielded from the profits from these sales, along with customer information and the ability to sell recurring revenue services such as satellite radio subscriptions.

The $ 34 billion Carvana online used car marketplace has filled the e-commerce space left open by automakers and most traditional dealerships, providing consumers with a way to buy a wide range of used vehicles from several brands and have their purchase delivered to your doorstep. Now GM is joining auto retail chains like AutoNation to set up online used-vehicle markets to counter Carvana, whose shares have fallen nearly 50% from their 52 week high.

Steve Carlisle, GM’s North American operations manager, said Tuesday that CarBravo could outperform Carvana because of the supply of vehicles that GM and its dealers control.

“We think we rank pretty well against anyone else,” Carlisle said.

The sale of used vehicles through CarBravo should allow GM to better control the resale prices of the rental and formerly leased vehicles it resells, and to generate revenue from subscriptions to its Onstar concierge service, on the radio. via satellite and other services, Carlisle said.

(Reporting by Joe White; editing by Jonathan Oatis)

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