Bob Ladick's questions to Openlane Inc (KAR) leadership • Q3 2024
Question
Will, on behalf of Bob Ladick, asked how the mix of off-lease auctions is changing amid the current environment of lower off-lease volumes.
Answer
CFO Brad Lakhia explained that increased go-to-market efforts have driven significantly more participation from franchise dealers as buyers in the open marketplace. This trend is shifting more off-lease vehicles into the open channel, which is OPENLANE's highest revenue-per-unit (ARPU) channel. As a result, the company is seeing a modest increase in the blended ARPU for the off-lease category, a trend he described as encouraging.