CarLotz, Richmond’s hometown favorite used vehicle consignment and remarketing business, is expanding – again. The company today announced that it will open its first store in Illinois, located at 2150 Ogden Avenue in Downer’s Grove, a suburb of Chicago. At roughly 30,000 square feet, the new CarLotz location mark’s the fast growing company’s seventh and largest retail location since it launched in 2011.
The locally headquartered company has garnered national headlines in recent years for its unique approach to serving the sale-by-owner and corporate fleet vehicle markets in locations throughout Virginia and North Carolina. In 2017, CarLotz closed a $30 million round of equity capital to support its nationwide expansion. Earlier this year, Carlotz opened a 10,000-square-foot store, housing 300 vehicles, in Tampa.
The CarLotz retail consignment model enables corporate sellers (leasing and fleet management companies) and consumers to capture a retail profit for their vehicles. CarLotz says that their model typically provides over $1,000 more in cash to the seller vs. the traditional trade-in models such as auctions or dealers. This successful approach to buying and selling used vehicles has allowed CarLotz to open new locations in key geographic areas and to emerge as a nationwide service provider to commercial remarketing clients. The most recent step in the company’s growth in Chicago will place the CarLotz brand in a diverse car market where it was already working with several commercial sellers in the area.
“We’re excited to extend our services to local businesses and consumers in Chicago who want more money for their cars as well as buyers who want more car for their money,” said Michael Bor, CarLotz CEO. “As we looked all over the country to further expand our business, Chicago emerged as the perfect community to grow our consumer consignment and fleet vehicle remarketing model.”
Bor says that the new Chicago store will have room for more than 500 vehicles. The facility will also support reconditioning efforts to ensure vehicles are in exceptional shape. CarLotz plans to initially hire 20 full-time team members to work in sales, administration, and reconditioning in their Chicago store.
“We have a unique business model that is ideally suited for customers in the Chicago metropolitan area who are looking for a smarter way to buy or sell a used vehicle,” said John Foley, Director of Sales Operations.
Following the completion of its retail center upgrades, CarLotz will host a formal grand opening in Chicago this summer. Here locally, CarLotz offers locations at 8406 West Broad Street and 11944 Midlothian Turnpike. CarLotz is headquaetered in City View Landing at 611 Bainbridge St. in the Manchester area of South Richmond.