A consignment-based used car retailer that went public earlier this year is adding a lot in Denver.
CarLotz will open at 8120 W. Tufts Ave. later this summer, CEO Michael Bor said. The company helps people sell used cars both online and at its various hubs across the country.
It was founded in Richmond, Virginia in 2011 and now has 12 locations in the U.S.
When CarLotz went public in January, it raised $300 million in funding and wanted to use that money to expand to “the largest, most attractive markets in the country,” Bor said. “Denver was one of the first markets we looked at. It was the first new hub we signed a lease with.”
Unlike most used car retailers, CarLotz doesn’t buy the vehicles it sells. Instead, it charges vehicle owners a $299 listing fee, then takes $799 when the vehicle sells.
For people who would otherwise go through a dealership, Bor said CarLotz helps get the seller more value for their car. For those who would otherwise sell the car themselves, it makes selling the car more convenient.
“It’s a full service offering for both the buyer and the seller, but it still gives you the value of the private market,” Bor said.
In addition to displaying vehicles at its lots, CarLotz lists them on websites such as AutoTrader and Cars.com. The average sale price for a car sold by CarLotz is $18,000, according to the company.
In Denver, CarLotz is leasing an approximately 4.6-acre property, previously home to another used car seller that Denver-based Drake Real Estate Services purchased last month for $5.71 million, according to public records. Seller Drawe Holdings LLC purchased the property in 2018 for $3.05 million.
JLL brokers Sam Zaitz, Jeff Feldman and Lorenzo Harris represented the seller in the deal, and also represented CarLotz in the lease.
CarLotz recently opened locations in Charlottesville, Virginia and Fairview Heights, Illinois, right outside of the St. Louis metro area.
Since CarLotz began trading on the Nasdaq in January, its stock price has fallen from $12.30 to Friday’s $5.55.