KAR Global finalizes sale of ADESA U.S. to Carvana

Carvana’s next steps

Carvana said fully utilizing the 56 sites will give it the ability to recondition up to 2 million vehicles per year.

At the end of the first quarter, the company reported it was capable of reconditioning 1 million vehicles through its own 17 inspection and reconditioning centers. Carvana expects its reconditioning capacity to stand at 1.4 million at the end of 2022.

The initial announcement that Carvana would acquire ADESA U.S. drew some concerns from automakers and dealers. Some reconsidered or cut their ties to the auction house.

KAR’s next steps

As part of its online-centric maneuver, KAR will keep operating Openlane, the platform Kelly founded in 2011 that supports programs representing about 80 percent of North America’s off-lease inventory.
The company also hopes the absence of the ADESA U.S physical auction space will allow it to focus on BacklotCars, Carwave and TradeRev, its burgeoning digital dealer-to-dealer platforms.

KAR keeps its ADESA Canada, ADESA U.K. and ADESA Europe units, plus all affiliated inspections, transportation and other services brands. It also retains AFC, its subsidiary that provides dealers with floorplan solutions.

KAR said it will provide more insight into its digital strategy during an analyst day update call that it may schedule for June.