Fund Manager Summary on CAR Group Limited (ASX:CAR)
In January 2026, Wilson Asset Management commented that CAR Group is an attractive, scorched-earth buying opportunity and that stronger US economic growth should benefit Trader Interactive, the group's US RV business. CAR Group Limited (ASX:CAR) is viewed broadly by fund managers as a technology-led, internationally diversified online automotive marketplace with a durable moat from proprietary platforms and incumbency; recent commentary emphasizes operational strengths such as internal CEO succession continuity, rollout of products and AI-enabled tools (Merlin, Bello, Autogate, Wallet, AI lead nurturing, new ad and lead models) and clear FY26 guidance (12%–14% pro forma revenue, 10%–13% pro forma EBITDA, 9%–13% adjusted NPAT) that support medium-term growth, while highlighting actionable risks and considerations including macro-driven demand volatility (recession/interest-rate concerns), the potential for AI to disrupt classifieds (managers debate whether AI is net positive or a structural threat), losses in vehicle finance markets that affect sentiment despite limited direct exposure, elevated gross debt and a high payout ratio (~80%), and a maturing growth rate that tempers near-term upside; fund manager positions vary from core-buy and accumulation on pullbacks to exits over AI and valuation risk, so key items for investors to monitor are Trader Interactive demand and US macro trends, AI adoption versus competitive disruption, capital allocation and payout policy, debt metrics and succession execution against management’s FY26 targets.
Commentary From The Managers
There are 19 insights from 10 fund managers regarding their investment in CAR Group Limited (ASX:CAR) available on Thesis Tracker.
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Commentary From The Managers
The completeness, accuracy or current status of the investments referenced are not guaranteed.
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Frequently Asked Questions
Who is investing in CAR Group Limited (ASX:CAR)?
Fund managers including Milford Asset Management, Blackwattle Investment Partners, Wilson Asset Management, Yarra Capital Management, Ten Cap, Pendal Group, Antares Capital, Selector Funds Management, Firetrail Investments and Hyperion Asset Management have invested in CAR Group Limited (ASX:CAR).
Why do fund managers invest in CAR Group Limited?
Fund managers invest in CAR Group Limited due to its strong position as a leading online automotive marketplace across multiple countries, including Australia, the US, and Brazil. The company demonstrated solid growth potential, with significant revenue contributions from diverse geographical segments and continued investment in technology. Analysts view it as a core holding, citing its expansive margins, consistent profitability, and strategic moves to enhance customer engagement. Concerns about macroeconomic conditions seem overstated, presenting a favorable risk/reward profile for long-term growth.
What happened to CAR Group Limited (ASX:CAR)?
Fund managers are investing in CAR Group Limited due to its unique technological advancements and strong competitive position, particularly in the Australian market. Blackwattle Investment Partners highlighted CAR's ability to deploy its locally developed technology globally, driving profitability through international operations. Pendal Group noted CAR's deep moat regarding technology and incumbency, as well as its strategic international expansion approach. Antares Capital emphasized that AI developments may benefit CAR, despite market concerns. Overall, the consistent growth potential and strong management make CAR a core investment choice.
What is the short interest in CAR Group Limited (ASX:CAR)?
The short interest in CAR Group Limited (ASX:CAR) is 1.53% which makes it the 168th most shorted stock on the ASX. Of the 378.4M shares that CAR Group Limited has on issue, 5.8M have been sold short.
What does CAR Group Limited (ASX:CAR) do?
CAR Group Limited (CAR, formerly Carsales.com Limited) established in the 1990s, manages global marketplaces in Oceania, Asia, and The Americas. Its digital vehicle marketplace portfolio includes carsales (Australia), Encar (South Korea), Trader Interactive (U.S.), and chileautos (Chile). Additionally, CAR Group holds a majority stake in webmotors (Brazil).