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EXCLUSIVE: CarLotz CEO Discusses Company's Growth, Advantages On 'SPACs Attack'

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EXCLUSIVE: CarLotz CEO Discusses Company's Growth, Advantages On 'SPACs Attack'

Michael Bor, CEO of CarLotz Inc (NASDAQ: LOTZ), appeared on Benzinga's YouTube show "SPACs Attack" for an exclusive interview Wednesday. 

CarLotz is a consignment business for cars in that the company professionally markets and sells cars for its customers, the CEO said. 

The company offers financing, warranties and trade-in options for buyers while providing convenience and greater proceeds to sellers than they would otherwise receive via the traditional trade-in process, he said. 

CarLotz's business model of offering car sales as a service allows it to capture the value of selling cars without taking on the risks involved with owning the inventory, Bor told Benzinga.

See also: How to Invest in SPACs 

The CarLotz CEO On Growth: CarLotz reported 123% revenue growth in the first quarter, and Bor told Benzinga he expects growth to increase as the company continues to open more hubs. CarLotz opened three new hubs toward the end of the first quarter and plans to open 14 to 16 total in 2021. 

Bor attributes the company's growth to high demand in the used car market. The total addressable market is nearly $1 trillion, Bor said, adding that the used car industry is "ripe for disruption."

CarLotz And Ally Financial: CarLotz has been working with

Ally Financial Inc (NYSE: ALLY) for years, but the company decided to "double down" on its relationship with Ally in March, Bor said. 

CarLotz decided to work with Ally to provide better lending opportunities and aftermarket products and services for buyers, he said, adding that the partnership creates other future opportunities for the company.

SPAC Deal Notes: The SPAC route made a lot of sense for the company, as it allowed CarLotz to secure the capital it needed to achieve its long-term growth plans and enabled the company to partner with a team of investment professionals familiar with retail and consumer brands, Bor said.

CarLotz went public via the special purpose acquisition company, Acamar Partners Acquisition Corp. The company began trading on the Nasdaq on Jan. 22. 

LOTZ Price Action: At last check Wednesday, the stock was down 7.54% at $5.15.

 

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