Richmond, Virginia-based CarLotz, a used vehicle consignment business, has raised $30 million in funding. The investor was TRP Capital Partners.
Richmond, VA – September 19, 2017 – CarLotz, a Richmond, Virginia based used vehicle consignment business serving the sale-by-owner and corporate fleet vehicle market, announced the closing of a $30 million round of equity capital that will support the company’s continued nationwide expansion.
CarLotz’ retail consignment model enables corporate sellers (leasing and fleet management companies) and consumers to capture a retail profit for their vehicles. This typically provides over $1,000 more in cash to the seller vs. the traditional trade-in models such as auctions or dealers. “Over the last few years, CarLotz has grown significantly, including the opening of new store locations in both Charlotte and Greensboro, North Carolina, expanding our geographic presence outside of Virginia,” said CarLotz CEO Michael Bor. “The investment from TRP will allow CarLotz to quickly open new locations in key geographic areas and become a true nationwide service provider to our commercial remarketing clients. We are thrilled for this next step in our Company’s growth.”
CarLotz was founded in 2011 by Bor, Aaron Montgomery, and Will Boland and the Company has grown to 70 employees. Bor continued, “Thanks to the hard work of our team, we’ve built a platform that enables our commercial, fleet, and consumer customers to sell their vehicles for a retail price that is often thousands more than wholesale auction or trade-in. Our flat-fee, non-commissioned sales model creates a comfortable shopping experience for our buyers, who typically pay well below retail prices, so it’s a win-win business model. It’s now time to take the concept nationwide.”
Steve Carrel, Managing Director at TRP Capital Partners said, “We’ve been following the CarLotz team for several years and are impressed with the value their unique business model is creating for both their consignment sellers and their retail buyers. CarLotz has proven to be a successful disruptor to traditional wholesale channels, and we believe they are well positioned for growth as they expand geographically. We are excited to be partnering with the CarLotz team to support their continued growth.”
With this capital, CarLotz is now actively seeking new retail locations in Florida, Texas, California, the Midwest, New England, and the Mid Atlantic. “We’ve learned that our model not only enables sellers to get the most money possible for their vehicles but also creates a comfortable, transparent shopping experience for buyers,” said Bor.
About CarLotz, Inc.
CarLotz (www.CarLotz.com) is a used vehicle consignment and retail remarketing business that enables consumers and corporations to make the most money possible when selling their vehicles. For a flat-fee, CarLotz will prepare the vehicle for sale, market it nationwide, manage buyer questions and conduct test drives from its retail stores, negotiate a deal on the seller’s behalf, and ultimately cut them a check when the vehicle sells. The company’s unique consignment model typically generates sellers thousands more than trade-in and wholesale auction channels, while buyers shop attractive, competitively priced inventory online and through CarLotz retail locations. CarLotz was founded in 2011 and currently operates five retail locations and two reconditioning centers in Virginia and North Carolina.
About TRP Capital Partners
Since 1997, TRP Capital Partners (“TRP”) (www.trpfund.com) has invested nearly $800 million of equity in 25 platform transactions, primarily through Penske Capital Partners, Transportation Resource Partners, LP, Transportation Resource Partners III, LP, and TRP Capital Partners, LP. TRP seeks to make investments in growth-oriented businesses in the transportation sector. The Firm capitalizes on strategic relationships, commercial synergies, and the transportation expertise of all of its partners. TRP’s philosophy is to support existing management teams while giving them autonomy to run the business. TRP’s principals have 100+ years of experience in the areas of finance and transportation-related investing. Certain historical transactions include Universal Technical Institute (NYSE: UTI), Penske Automotive Group (NYSE: PAG), United Road Services, National Powersport Auctions, Around The Clock Freightliner Group, Nacarato Volvo Trucks, 4Refuel, Commonwealth Laminating & Coating, Endurance Vehicle Services and Tire Group International.