RumbleOn to Acquire Wholesale, Inc. & Wholesale Express (AutoRemarketing)
RumbleOn, which has initially focused on motorcycles and other powersports vehicles, has had its eye on “adjacent markets.”
Friday, it expanded into one of those: the automobile market.
The company — which provides an ecommerce platform for dealers and consumers to buy, sell, trade and finance pre-owned vehicles — announced definitive agreements to purchase Wholesale, Inc. and Wholesale Express, LLC.
Total consideration for the deal is $23 million. That includes $16 million cash and the remaining balance of Class B shares of RumbleOn. The total amount, RumbleOn said, is “subject to adjustment based on the stock price of the RumbleOn Class B Common Stock at closing.”
Read the full story here.
DealShield Opens to More Independent Auctions (Manheim)
The gold standard in wholesale purchase protection solutions, DealShield’s DS360 Guarantee, is available to a new group of independent auctions, thanks to an integration with the EDGE AuctionOS platform. Over 100 Auction Edge partner locations can now sign up to offer their buyers the peace of mind that only DealShield provides. Central Auto Auction in Hamden, CT is the first independent auction on the EDGE AuctionOS platform to leverage the new integration.
“We’re excited to be the first AOS auction to offer the DS360 guarantee, and as always the EDGE folks stepped up to make it happen,” said Peter Saldamarco, President at Central Auto Auction. “DealShield brings substantial value to our Simulcast and OVE buyers and will no doubt help generate additional business for us.”
DS360 helps dealers across the industry reduce recon costs, eliminate costly mistakes, redeploy capital faster and gain greater peace of mind in their wholesale purchases by offering a truly hassle-free return guarantee.
Read the Official Press Release here
Will Anyone Go to Used-Car Dealerships in the Future (Bloomberg)
Amazon.com Inc. has been making inroads, launching a car research and review website in 2016 and working with Hyundai Motor Co. and tire-installer Monro Inc. this summer. Tesla Inc., by far the biggest all-electric manufacturer, doesn’t work with dealers at all, preferring a business model built around showrooms and online ordering.
It’s against that backdrop that Lithia Motors Inc., a 72-year-old brick-and-mortar dealership chain with $10 billion in sales last year, came to partner with Shift, a five-year-old car-shopping startup out of San Francisco. Shift is talking up plans to go public as soon as 2020 after raising $140 million in venture funding last month, including a strategic investment from Lithia.
The alliance speaks to the pressure on dealers to adapt to the technological changes afoot in auto retail. While most national chains let shoppers browse inventory and calculate financing online, they’re reluctant to let buyers complete a purchase without luring them into the dealership.
Read the full story here
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