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GM’s Carobravo Pre-Owned Vehicle Platform Provides Inventory Scale and Options

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“This is a very good coverage if you compare it to Carvana or Carmax or something like that,” Carlisle said. Car News.

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Cox Automotive estimates that half of used retail sales — or about 10.6 million vehicles — were sold by licensed dealers last year. Spokesman Sabine Blake said GM aims to list up to 80,000 vehicles in Carbravo this year.

during CarmaxIn the fiscal year ending in February, the largest used car retailer sold 924,338 vehicles on a retail basis. Carvana It sold 425,237 cars in 2021, and from It sold 74,698 last year.

“If you think about some of the competition, one of the biggest challenges they face is getting good used cars,” Carlisle said in an April 29 interview. “In today’s world, there is a large part of that seeping out of our system between us and our agents.”

General Motors’ business is much broader than used car sales. The automaker is likely to absorb a portion of the market without hurting much existing retailers, said David Weston, US auto equity strategist at Morningstar.

“There’s room for a lot of players,” Weston said. “If you want to invest in IT, it can definitely be successful.”

Customers will shop through GM’s digital retail platform, which allows them to complete many purchases online but also connects them with a merchant.

“If you’re shopping through a used car OEM, it’s a bit of a piecemeal experience,” Carlisle said. “You’re going dealer by dealer.” “What we can do is bring it all together in one experience from a consumer perspective and do it in a way that not only benefits consumers, but merchants as well, because they have access to more inventory and better tools than they would have had if they did it themselves.”

Over time, GM plans to sell software and subscriptions to used-car buyers, aiming to double revenue to $280 billion by 2030 from its five-year average of $140 billion. It expects software and other new business to grow approximately 50 percent annually through the end of the decade.

“CarBravo gives us another point of contact from a consumer point of view,” Carlisle said.

The automaker can market OnStar and OnStar Insurance, for example, to GM and non-GM used car buyers through CarBravo. Ultimately, when vehicles in the fleet in use have the technology to enable GM’s Super Cruise driver assistance system, GM will be able to offer this feature to customers, along with the over-the-air updates that come with it.

“It’s increasingly positive because this is an asset-light revenue in the sense that the vehicles have already been built,” Whiston said.

“It’s likely to be a much higher margin source of income than just selling the car.”

Retailers of new and used vehicles are facing inventory pressures due to a global shortage of microchips and other supply constraints. That, in the short term at least, could affect CarBravo’s success, said Daniel Embru, a retail analyst at Stevens.

“It will depend on how many merchants they choose,” he said. “Critical mass will be required because liquidity is the most important thing that will drive volume in the long run.”

Carlisle acknowledged the challenge of launching CarBravo amid a shortage of used cars, but said GM would look at inventory levels as it builds regional distribution centers “so there is added value to the merchant and then to the consumer.”

As a manufacturer of new vehicles, GM is in a good position to gather the most qualified used inventory that becomes available, he said.

“We have priority access to the cream of the crop,” Carlisle said. “It all adds up to a really compelling opportunity.”

C.J. Moore contributed to this report.

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