New online players are threatening to upend the used-vehicle market, competing for and winning business when traditional bricks-and-mortar dealers can ill afford to lose it.
As the global microchip shortage and supply-chain issues have relentlessly slashed new-vehicle inventory, franchised dealers have grown increasingly dependent on used vehicles — using highly creative ways to get them — to keep sales rolling.
That task likely isn’t about to get any easier as two upstart companies — Canada Drives and Clutch — have set their sights on expansion to become nationwide sellers.
“We hope to disrupt a lot of what’s being done in Canada,” said Dan Park, CEO of Clutch, now operating in Nova Scotia, Ontario, Saskatchewan, Alberta and British Columbia.
“We’re seeing growth quarter over quarter,” said Cody Green, co-CEO of Canada Drives. “The only thing tempering our growth is the ability to find inventory.”