Advertisement

Clutch expands physical retail presence across Canada as online car sales accelerate

Date:

Share post:

Toronto-based online car retailer Clutch is accelerating its expansion across Canada, combining its innovative digital platform with physical retail locations to make car buying as seamless as ordering a pizza.

Canada’s largest online car marketplace recently opened a brick-and-mortar retail space and flagship facility in Mississauga, creating a physical touchpoint that brings its transparent, digital-first experience offline. 

At 111,000 square feet, the facility is the largest vehicle inspection and reconditioning centre in Canada, bringing 400+ new jobs to Ontario. It will power end-to-end operations, ensuring every vehicle meets Clutch’s standards on quality, consistency, and transparency.

Source: Clutch
Source: Clutch

Designed to be both practical and welcoming, the new space is outfitted with Canadian-sourced furniture, customer wood details, and even a kid-friendly area for all customers, whether they’re there to pick up, drop off or just learn more about how Clutch works.

Founded in 2017, the company initially launched in Halifax due to what CEO Dan Park described as “ambiguous regulations on online car retail” in Ontario. After working closely with regulators, Clutch launched operations in Ontario in 2020.

Dan Park
Dan Park

“We’re a Canadian company, founded by Canadians, serving Canadians,” said Park. “So I think that’s an important fact.”

Clutch allows consumers to sell their vehicles directly to the company and buy fully inspected and reconditioned cars online. The platform currently purchases about $2 million worth of vehicles daily.

“We have a very rigorous inspection and reconditioning process,” said Park. “We have several facilities in the country. Our largest is in Mississauga. It’s a 20-acre facility with 100,000 square feet of warehouse space where we bring in the cars. We have Clutch inspectors, Clutch mechanics that certify and recondition those vehicles, and then we put them on a website.”

That site offers what Park calls “an Amazon-like experience where people can really buy a car almost as easy as buying a pizza.”

Clutch’s model also includes a self-built logistics network for vehicle delivery, using branded flatbed trucks to deliver and pick up cars directly from consumers’ homes. But in a move to support education and in-person interaction, the company is expanding its physical retail presence.

“We have a retail concept where people can pick up or drop off cars physically as well,” said Park. “Our main location is in Mississauga. We have one in Etobicoke, and we’re opening one in Markham, in the CF Markville Mall, next month.”

“These are locations where customers can either pick up or drop off vehicles and also receive any information about the company, about our process. Because, truth be told, buying a car online is not exactly familiar to everyone.”

Park said the physical retail locations help bridge that familiarity gap and reflect Clutch’s broader mission to revolutionize how Canadians buy used vehicles.

“It seemed crazy that, in more recent history, there’s no retail brand for used cars in Canada,” he said. “If you think about the U.S., there’s folks like CarMax, there’s large auto groups, there’s Carvana. There was a company called Vroom at the time. There was a bunch of different retail concepts. In Canada, your two options were to go to your local dealership or to meet some stranger in a Walmart or mall parking lot.”

Source: Clutch
Source: Clutch

Clutch now operates locations in Halifax, Vancouver, and across the Greater Toronto Area, with plans to expand further nationwide.

“We’re looking to expand a network across the country,” said Park.

Currently, Clutch is selling 1,200 to 1,300 vehicles per month.

“That gives consumers a very seamless and easy and transparent way to buy a car,” said Park. “The traditional car buying process can take hours and hours. You generally have to spend an entire Saturday or Sunday in a dealership, negotiating with some guy and trying to haggle on the price. Our model is entirely different. Everything is super transparent on our website. The price is the price.”

Financing options are built in, and customers can choose to pay upfront or in monthly installments.

“Behind all of this is a layer of technology, and at its core we are a technology company, building out a retail concept,” said Park.

Related Retail Insider stories:

Source: Clutch
Source: Clutch
Source: Clutch
Source: Clutch
Mario Toneguzzi
Mario Toneguzzi
Mario Toneguzzi, based in Calgary, has more than 40 years experience as a daily newspaper writer, columnist, and editor. He worked for 35 years at the Calgary Herald covering sports, crime, politics, health, faith, city and breaking news, and business. He is the Co-Editor-in-Chief with Retail Insider in addition to working as a freelance writer and consultant in communications and media relations/training. Mario was named as a RETHINK Retail Top Retail Expert in 2024.

1 COMMENT

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More From The Author

RECENT RETAIL INSIDER VIDEOS

Advertisment

Subscribe to the Newsletter

Subscribe

* indicates required

Related articles