DALLAS — lanelogic plans to expand its proprietary dealer-to-dealer trading network to an additional 21 states over the next 90 days.
According to the company, this expansion represents the addition of more than 300 pre-signed dealerships to its dealer network.
This development follows on the heels of lanelogic and Copart announcing earlier this month that they recently closed a $10 million equity investment with the Dallas-based hedge funds HBK Investments and Cain Capital. Executives also confirmed that Bruce Thompson, lanelogic's founder and chief executive officer, made an investment in the company.
Lanelogic launched its pilot program in the Southwest and Midwest regions in April 2006, officials said. Executives noted that the pilot proved successful, with more than $14 million placed in buy bids the first week alone.
Since then, lanelogic said the company has enjoyed "aggressive growth," laying the groundwork for this new round of expansion.
According to lanelogic, the multi-bid program offers dealers four bid options: dealers may sell a vehicle to lanelogic with the "sell bid" option, or they can choose to keep the vehicle with three guaranteed "put bid" options. Officials said lanelogic's put bid offers a guaranteed buyback if the vehicle doesn't sell in 45 days.
"Introducing a new product and concept to the auto industry is very exciting, but hasn't always been easy. Our dealers have been very patient and allowed us to gain the experience needed to perfect our model," Thompson noted. "We have made great strides with our product, technology and service over the last few months. We're really looking forward to this year's National Automobile Dealers Association convention, where we will introduce our new tools and upgraded service."
Lanelogic's president, Jim O'Brien, added, "We are continually perfecting our model, which is designed to specifically meet the unique needs of each of our dealerships. We think our customers will love the enhancements. Our pilot proved lanelogic works. We are very excited about 2007 and look forward to adding our expansion regions to our network of dealers."