KAR Auction Services Inc. is boosting its investment in its TradeRev business as it seeks to spread the online appraisal and auction tool to as many as 100 markets across North America and eventually take it global.
Through a mobile app or a desktop tool, TradeRev lets dealerships sell wholesale vehicles to other dealerships in real time.
In the second quarter, 30,000 vehicles were sold through TradeRev, more than double the year-earlier period, KAR said this month. It's in just more than 30 markets in the U.S. and Canada. But those numbers are "a drop in the bucket" of what KAR executives think TradeRev can do.
To that end, the company is ramping up its spending on Trade-Rev in the second half of this year, adding staffers and expanding marketing and branding efforts. The number of dealers using the platform is growing, though KAR isn't disclosing how many are signed up.
"One of our biggest challenges is just hiring the people," KAR CEO Jim Hallett told Automotive News. That includes technical staff such as engineers and field reps who can train dealers. "You just can't hand the dealer the app and have them understand how to use it. You have to hold their hand for some period of time while you get them introduced. It's still very much in the early stages."