What Caramel does

Caramel is a digital transaction platform that simplifies the buying and selling of used vehicles between private parties, with operations based in Encino, California. The company provides a self-serve web and mobile experience (iOS and Android) through which buyers and sellers can complete end-to-end private party vehicle transactions — including identity verification via biometric and government ID checks, secure escrow-based payment, automated DMV paperwork and title/registration processing, financing facilitation through national bank partners, insurance quoting across 100+ carriers, optional extended warranty (Caramel Care), notarization, and vehicle transport. To legally execute title transfers, Caramel operates licensed dealer entities (Caramel Dealer Services, LLC dba CDS Auto Sales) in Arizona, California, Florida, Texas, and Washington, alongside a California-licensed insurance producer subsidiary.

Caramel is not a marketplace; instead, it functions as a checkout and transaction layer that works with any vehicle listing and is embedded directly into partner platforms such as Bring a Trailer (where it powers Verified Checkout), eBay Motors, cars.com, AutoTrader, Facebook Marketplace, Craigslist, and AutoTempest. The platform exposes a guided 9-step buyer flow and 7-step seller flow designed to complete in minutes, replacing the traditional multi-day private sale ordeal of DMV visits, paper title handling, and unsecured payment.

The business model is transaction-based. Buyers pay a $95 checkout fee (rising to $295 for complex cases such as lender requirements, complex DMV transfers, or EV tax credit processing), with a $149 fee for full title and registration services, a $25 notarization fee passed through at cost, and a 0.5% fee on instant payments up to $25,000. Sellers pay no fee on standard transactions but $95 if the vehicle has a lien, the title is not in their name, or the sale price is under $1,000, plus a $250 cancellation fee after the buyer signs. Additional revenue is generated from referral fees on financing, insurance, and Caramel Care warranty products. As of January 13, 2025, eBay announced a definitive agreement to acquire Caramel, with closing expected in Q1 2025.

Name

Caramel

Legal name

Caramel, Inc.

Website

https://drivecaramel.com

Company type

Private

Founded year

2024

Operating status

Acquired

Headcount range

11–50 employees

Short description

Caramel is a digital transaction platform that enables private party used car buyers and sellers to complete end-to-end vehicle transfers — including identity verification, escrow, financing, insurance, and DMV paperwork — and is being acquired by eBay.

Ownership category

akta.pro rank

Headquarters

HQ city

Encino

HQ country

United States

HQ region

North America

Offices7 records

Markets served

GTM type

B2C

Offering type

Software

Cost components

Personnel, Technology or R&D, Marketing or Sales, Operations, Infrastructure

Revenue model

1. Buyer Transaction Fee: Buyers pay a $95 fee for checkout services. This fee can be netted out of seller's payment if seller agrees. Fee can increase up to $295 in certain cases (lender requirements, complex DMV transfers, EV tax credit processing).
2. Seller Transaction Fee: Sellers pay no service fee for standard transactions. A $95 fee applies if there is a lien on the vehicle, title is not in seller's name, or sale price is under $1,000. $250 cancellation fee if seller cancels after buyer has signed.
3. Title and Registration Services: $149 fee to complete full title and registration process on behalf of buyer. DMV fees passed through at cost.
4. Financing Facilitation: Partners with national banks to provide financing. Revenue likely comes from referral fees or transaction processing from lending partners.
5. Vehicle Protection (Caramel Care): Optional extended warranty product, similar to extended warranty covering mechanical repairs. Revenue from insurance/warranty partners.
6. Insurance Referral: Connects buyers with over 100 insurance carriers. Referral fees from insurance partners.
7. Instant Payment Processing: 0.5% fee on instant payment method for same-day 24/7 payment clearing.
8. Notarization Services: $25 fee for online notarization via Notarize.com, passed through at no markup.

Pricing tiers

Go-to-market motion2 records

Distribution channels4 records

Marketing channels6 records

Core offering

Caramel is a digital transaction platform that powers the checkout, payment, paperwork, and ownership-transfer steps of private party used vehicle sales. The service combines biometric buyer and seller identity verification, secure escrow payments via Plaid, automated DMV title and registration processing, and an embedded marketplace of financing, insurance, extended warranty (Caramel Care), and vehicle transport options. It is consumed both directly via a web and mobile app and indirectly as the checkout layer embedded in partner marketplaces such as Bring a Trailer.

Product overview

Caramel operates as a unified online automotive transaction platform designed to simplify private party car sales. The core product consists of the Caramel Platform (web and mobile app) which provides end-to-end transaction management including identity verification, financing facilitation through partner lenders, optional vehicle protection (Caramel Care), insurance coordination, and title/registration handling. The platform offers separate but integrated buyer and seller checkout workflows, along with a digital self-inspection module. Caramel also powers a white-label solution called Bring a Trailer Verified Checkout for the Bring a Trailer auction platform. The company operates as a licensed dealer in multiple states to facilitate title transfer and registration.

Differentiator

Problem solved

Functional benefit

Brands

• Caramel Care: Vehicle protection product (extended warranty) that protects vehicles against costly mechanical repairs or unforeseen circumstances, offered as optional coverage during the checkout process.

Products and services

• Caramel Platform End-to-end digital checkout and ownership-transfer platform for private party used vehicle sales, combining identity verification, escrow payments, DMV paperwork, financing, insurance, warranty, and transport. Targeted at individual US consumers buying or selling a used car outside of a dealer relationship.
• Caramel Care Optional extended warranty / vehicle protection product covering mechanical repairs and unforeseen circumstances, offered to buyers during the Caramel checkout process and financeable as part of the vehicle purchase. Underwritten by partner warranty providers.
• Bring a Trailer Verified Checkout Co-branded white-label checkout solution powered by Caramel for the Bring a Trailer auction platform, providing identity verification, paperwork automation, title transfer and registration, secure fund transfer, and optional financing, protection, and insurance for Bring a Trailer vehicle sales.

Quantifiable outcome

• 9 steps in 9 minutes or less for buyers, 7 steps in 7 minutes or less for sellers
• +3 more outcomes

Named customers7 records

Segments3 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Integration5 records

Feature4 records

Partnerships

Three partnerships are on record, tiered core.

• Bring a TrailercoreStrategic or Co-development PartnerPartnership to power Bring a Trailer Verified Checkout service. Caramel handles identity verification, paperwork automation, title transfer and registration, secure fund transfer, and optional financing, delivery, protection and insurance for Bring a Trailer auction buyers and sellers.
• PlaidcoreTechnology or IntegrationPlaid enables secure bank account connections for payment processing. Plaid authenticates user bank accounts and allows Caramel to initiate ACH payments and deposits. User financial data is transmitted, stored, and processed by Plaid per their privacy policy.
• Insurance Carriers (100+)coreTechnology or IntegrationCaramel connects buyers with over 100 insurance carriers of varying sizes and specialties to provide competitive insurance quotes. Shows best quote across three common coverage levels.

Scale indicators4 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Shift: Digital platform that facilitates online used car buying and selling, with a similar focus on streamlining private-party and consumer vehicle transactions end-to-end. Highly comparable in mission and target user to Caramel's checkout experience.
• Bring a Trailer: Premium online auction platform for enthusiast and classic vehicles and Caramel's flagship embedded checkout partner. Both companies serve the same buyer-seller base and use Caramel's identity, escrow, and DMV services for transaction completion.
• Roadster: Online car-buying platform that offers end-to-end private party and dealer transactions, including financing, trade-in, and home delivery. Direct functional peer to Caramel's end-to-end transaction model before being acquired by Cox Automotive.

Broad incumbents

• Carvana: Large online used car retailer offering vehicle browsing, financing, and home delivery. Broader incumbent competing for the same end consumer outcome (online car buying) but with owned inventory rather than a pure checkout layer.
• Vroom: Online used car retailer with national delivery, financing, and trade-in services. Competes with Caramel for online car shoppers but operates with owned inventory and a direct-to-consumer sales model.
• CarGurus: Leading online car shopping and research marketplace connecting buyers and sellers, including dealer and private-party listings. Broad incumbent in the same buyer journey where Caramel operates as a checkout layer.
• Cars.com: Major automotive marketplace for new and used vehicles. Caramel integrates with Cars.com as a checkout partner; Cars.com competes for attention in the same online car shopping flow.
• eBay Motors: eBay's online vehicle marketplace and the acquirer of Caramel. Serves the same private-party and dealer vehicle seller/buyer audience and is expected to embed Caramel as its checkout infrastructure post-acquisition.
• AutoTrader: Established online automotive marketplace owned by Cox Automotive. Listed as a Caramel integration partner and serves the same private-party and dealer buyer/seller audience.

Emerging players

• ACV Auctions: Digital auction platform for dealer-to-dealer used vehicle sales with inspection, financing, and transportation services. Adjacent transaction-layer play for the wholesale side of the same market Caramel addresses on the consumer side.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• Facebookfacebook.com/drivecaramel
• LinkedInlinkedin.com/company/drivecaramel
• Instagraminstagram.com/drivecaramel
• TikToktiktok.com/@drivecaramel

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Subsidiaries2 records

Funding overview

Funding rounds4 records

Investors6 records

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Caramel