CAR group isn’t a complicated business per se, it makes money by operating leading online automotive marketplaces where dealers and private sellers pay to list vehicles and related services. The stock rallied ~10% earlier in the month after delivering a solid result and exciting investors by saying its AI spend is being absorbed within existing development budgets, leveraging CAR’s proprietary data – read Here.
The company handles related metadata and some sensitive personal information, but this is typically collected in transactional contexts rather than through ongoing, system-wide data management, placing it in a different category to TNE from a security and data sensitivity perspective. Customer feedback suggests many users value CAR Group’s marketplaces for their reach and effectiveness, although a vocal minority cite frustrations around pricing and support. Overall sentiment appears broadly positive, but not without areas for improvement, something AI in theory could address quickly and cheaply.
- Fears of AI disruption have seen the stock fall over 40% from its 2025 high, taking its valuation ~30% below its 5-year average.
We ultimately believe CAR and other classified type business are more susceptible to disruption relative to a WiseTech or Technology One for instance, with higher risk around competitive pressures.
- We exited CAR from the Growth Portfolio, and believe there are better options in the technology/software space into weakness, with fewer risks than CAR.
MM is neutral towards CAR Group ~$24
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