Carvana introduces online tool for consumers to track used-car values

Online used-vehicle retailer Carvana Co. said on Tuesday it rolled out its own digital tool that allows vehicle owners to receive up-to-date valuations on their cars and monitor those values.

The Tempe, Ariz., company also said its new Carvana Value Tracker is designed to keep tabs on a used vehicle's value against volatility in market conditions. The company said in a news release that it calculates a vehicle's value by reviewing details such as "vehicle features, accident history, mileage, service records, trusted pricing guides, Carvana market conditions and general market analysis."

No vehicle purchase or trade-in is required to use the tool, which is free of charge and available on Carvana's website and mobile app, the company said.

The tool is meant to make determining a vehicle's value in the lead-up to selling or trading it in less daunting for consumers, said Andrew Dickerson, director of engineering, special projects at Carvana.

"The car in a customer's driveway is likely one of the largest assets in their portfolio, and yet most have no idea at any given moment what that asset is worth," Dickerson said in a statement. "With Carvana Value Tracker, we are demystifying car selling by offering insight into a customer's car's value at any point in time, in a way that is actionable should they choose to sell."

To use it, vehicle owners enter certain vehicle details, including their license plate number, postal code and vehicle mileage. They then receive a customized value for the vehicle, which can be saved and checked later to see how it changes over time, Carvana said.

Carvana will keep owners who have entered vehicle data "periodically informed of the vehicle's competitive value as market conditions fluctuate" via email, according to the news release.

Separately, Carvana said it expects its third-quarter adjusted core profit to be above $75 million from its prior forecast of "positive adjusted EBITDA."

Carvana, in an attempt to strengthen its balance sheet and attain positive cash flow, has been trimming inventory and slashing advertising expenses.

Reuters contributed to this report.