General Motors Co has announced the launch of CarBravo, an online used vehicle marketplace, aiming to compete with industry leaders such as Carvana Co and CarMax Inc. This platform will enable GM and its dealers to enter the lucrative market of selling pre-owned vehicles. CarBravo will aggregate vehicles from Chevrolet, Buick, and GMC dealers, as well as those controlled by GM Financial, the company’s consumer finance arm, which includes cars taken back from rental agencies or leases. With around 400,000 used vehicles in stock, GM’s CarBravo is set to go live for consumers in the spring.
In the U.S., where approximately 40 million used vehicles are sold annually—more than twice the number of new cars and trucks—automakers have traditionally been distant from the profits and customer data generated by these transactions. The surge in used car prices during the pandemic, driven by supply-chain challenges, has further intensified the market’s appeal.
Carvana, valued at $34 billion, has emerged as a dominant player in the online used-car marketplace, offering consumers a comprehensive selection of used vehicles from various brands with the convenience of home delivery. GM, recognizing this trend, follows the footsteps of auto retail chains like AutoNation in establishing its online used vehicle marketplace to directly compete with Carvana.
Steve Carlisle, head of GM’s North American operations, expressed confidence that CarBravo could surpass Carvana, emphasizing the ample supply of vehicles under GM’s and its dealers’ control. He stated, “We think we stack up pretty well against anyone else out there.”
Carvana responded to GM’s announcement by underscoring its pioneering role in online car buying, having bought and sold over 1 million vehicles. Meanwhile, CarMax’s Chief Marketing Officer, Jim Lyski, acknowledged the challenge posed by GM’s move, stating, “What they have set out to do is difficult.” The competition in the online used car market is heating up, with traditional players recognizing the need to adapt to changing consumer preferences.
