VRM - CarGurus ACV Auctions expanding market share in online auto sales - Oppenheimer

In a competitive market for online auto sales, Oppenheimer notes CarGurus (NASDAQ:CARG) and ACV Auctions (NASDAQ:ACVA) are accelerating faster than their peers. After expert checks performed on Tuesday, a team of analysts led by Jed Kelly reported that digital car sales continue to gain momentum. A major wholesaler consulted by the bank’s analysts indicated that digital sales made up about 50% of wholesaling volume, up from 30% in the early months of the year. The individual interviewed expected this momentum to continue moving forward and make up a majority of sales for the foreseeable future. While Carvana (CVNA), CarMax(KMX), and Vroom (VRM) often attract attention for internet-based auto sales, the bank noted ACV Auctions and CarGurus’ CarOffer platforms are gaining traction with wholesalers. “[The wholesaler] primarily utilizes ACV for buying, and CarOffer for selling. He prefers buying on ACV based on its more capital-intensive inspection process enabling it to service

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CarGurus, ACV Auctions expanding market share in online auto sales - Oppenheimer