Automotive industry disruptors Dealer Trade and CarRecord platforms up for sale
TWO AUSTRALIAN-BASED online platforms in the automotive industry, Dealer Trade Holdings Limited and CarRecord Limited and their subsidiaries, are being offered for sale. The founding shareholders said they were seeking to "leverage opportunities for continued expansion of the successful platforms in Australia and the key USA and UK markets".
Dealer Trade Holdings is an unlisted public company headquartered in Brisbane, completing a product expansion into the United Kingdom in 2017 and with the launch of CarRecord in the United States in July 2018.
“The opportunity for growth in these markets is substantial,” Dealer Trade Holdings chairman Jarrod Sierocki said. “We’ve enjoyed first mover advantages with our technology platforms in two auto markets which were ripe for disruption.
“We agree that now is the time to seek a suitable buyer who will have the capacity and reach to be able to achieve significant market penetration on a global scale.”
The sale process is being managed by the company’s corporate advisor, KPMG's Sydney office.
Dealer Trade is a virtual wholesale vehicle auctioning platform exclusively for motor dealers, manufacturers and fleets. Through the app, wholesalers can immediately auction traded cars to other connected wholesalers in the market.
Mr Sierocki said it has over 60 percent of all motor dealers connected in Australia and was the first mover to digitally disrupt the traditional operating wholesale market of used cars. Launched in 2016, Dealer Trade has expanded to the UK and with plans underway to expand to the USA, along with discussions with global major auto manufacturers for direct dealership transactions.
In August this year, Dealer Trade announced a partnership with ŠKODA UK to provide their dealer network with a cost-effective online remarketing solution. This followed an earlier deal with LDV UK, one of Europe’s most recognised commercial vehicle brands.
CarRecord is an online platform which sources and collaborates vehicle history and data. It produces an instant automated comprehensive report based on multiple data sources including vehicle valuation (including odometer comparison), stolen and insurance checks and manufacturer recalls. Almost half of used vehicle buyers in Australia perform a background check.
Launched in Australia in 2016 and the US in 2018, CarRecord has plans to roll out in the UK in 2020.
In the US, CarRecord is one of only 10 approved National Motor Vehicle Title Information System data providers, a US Justice Department program to collaborate vehicle data. In Australia, the company has a reseller agreement with ebay-owned Gumtree, which has around 7,000 new vehicle listings per day.