Carchex.com hits the road with expansion plans

Carchex.com has received a new infusion of investment money and is adding executives to its senior management.

Carchex.com, which uses the Internet to sell car inspection information and extended vehicle warranties to customers shopping online for a pre-owned vehicle, has received an undisclosed amount of new working capital from Baltimore-based private equity firm Atlantic Capital Group LLC, which now holds a minority interest in the company.

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With part of the funding, Carchex.com has hired John Scanlon, a former senior vice president of Capital One`s direct banking business, as president and chief operating officer. Carchex.com also has named Gar Richlin, former president and COO of Advertising.com and former COO and chief financial officer of SITEL Corp., as chairman.

“Adding veteran and talented executives like John and Gar to our management team is critical to building and managing the infrastructure needed to support our plans for continued rapid growth,” says Carchex.com CEO and founder Jason Goldsmith. “Our ability to attract top executives to the company at such an early stage in our growth is a clear indicator to us that we are on the right track. We are in a prime position to continue as the brand leader for consumer-based vehicle inspections and extended auto warranties.”

With the new funding and executive management, Carchex.com plans to grow to 1,500 inspectors and 120 office employees in the next two years. The company recently relocated its corporate headquarters to a 13,500-square-foot facility in Hunt Valley, Md., from its previous location in Baltimore. The company currently has about 900 inspectors.

Carchex.com uses a national network of inspectors to sell online reports to consumers interested in buying a used vehicle on third-party sites such as eBay Motors, AutoBytel, CarDirect.com and others. Inspection reports, which include 155 different items, can be purchased online for $99.95. CARCHEX expanded its offerings in 2004 by selling extended warranties for pre-owned vehicles.