The CarLotz chain of used-car consignment stores has made another expansion, this time setting up shop in Texas.
On Tuesday, the company announced a new location in San Antonio, continuing a 2018 growth pattern that has also included new stores in Florida and Illinois.
CarLotz launched in 2011 in Virginia, eventually adding other locations in the Old Dominion area and North Carolina before expanding further this year.
San Antonio is the company’s eighth location.
“In the past few years, we’ve seen increasing demand for our unique vehicle consignment business model, specifically from consumers and our commercial accounts in the great state of Texas and the surrounding regions,” CarLotz co-founder and chief executive officer Michael Bor said in a news release.
“We’re excited to bring CarLotz to San Antonio. The city’s dynamic growth, diverse car market and welcoming community make it a perfect fit to grow our consignment model,” he said.
In an interview earlier this year, Bor talked about how CarLotz selects expansion targets. He said the company talks with consignors and looks at the overlap of this Venn diagram, so to speak: Where do consignors have high volumes of cars? Where is there an opportunity to improve wholesale results?
At the time, CarLotz had just launched in Chicago and was also targeting California, New England and Texas for expansion.
“Our business model is ideally suited for customers in Texas,” CarLotz director of sales and operations John Foley said in Tuesday’s news release.
“Not only do sellers make thousands more than their trade-in value, buyers save money as well, and they love our non-commissioned, transparent pricing model that takes the pressure out of the traditional car-buying experience,” Foley said.
There are currently 10 employees at CarLotz San Antonio, with plans to grow that to 30. The company says the 22,000-square-foot store and lot will able to house 350 cars.
Bor added, “We’re working with several commercial sellers in the area and extending our services to local businesses and consumers who want more money for their car. Both commercial and consumer sellers leave money on the table when they trade in or sell through wholesale auctions, but that’s often their only viable alternative.
“With CarLotz, sellers have a new option with our consignment model, which enables them to get what their vehicle is actually worth without the hassle of selling it themselves,” said Bor.