This is the first week of carwave auctions being run on backlot car's website. KAR purchased carwave last year for $450M. They had previously purchased and shut down traderev, moving traderev dealers over to backlot in the process.
I was surprised that KAR shut down carwave and keeps pushing Backlot. Carwave was very successful and a good platform for buyers and sellers. I have bought a lot of cars on backlot, but the main issue is basically there is almost no coverage for frame/structural damage. I opened an arbitration case for structural damage on a recent purchase and I was told that the frame has to be rotted out or the car is unsafe to drive for the arb case to be honored. They do not follow NAAA standards. The inspection forms give the appearance of frame/structural coverage but buyer beware!
It seems that KAR wants to make Backlot the place to send all your units that wont pass NAAA standards. I would like to hear other dealers' thoughts on the merger and backlot in general.
I was surprised that KAR shut down carwave and keeps pushing Backlot. Carwave was very successful and a good platform for buyers and sellers. I have bought a lot of cars on backlot, but the main issue is basically there is almost no coverage for frame/structural damage. I opened an arbitration case for structural damage on a recent purchase and I was told that the frame has to be rotted out or the car is unsafe to drive for the arb case to be honored. They do not follow NAAA standards. The inspection forms give the appearance of frame/structural coverage but buyer beware!
It seems that KAR wants to make Backlot the place to send all your units that wont pass NAAA standards. I would like to hear other dealers' thoughts on the merger and backlot in general.
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