Benzinga | Oct 21, 2020 06:51PM EDT

Jim Cramer And Lithia Motors CEO Talk Plans, Competition

On CNBC's "Mad Money" Wednesday evening, Jim Cramer interviewed Lithia Motors, Inc. (NYSE:LAD) CEO Bryan Deboer about the company's competitive strategy approach against Carvana Co. (NYSE:CVNA).

Deboer says the company plans on competing with Carvana by first launching its Driveway.com strategy, which is an e-commerce solution. Drivway.com lets customers purchase or sell vehicles online and schedule at-home services.

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There are 20,000 cars on online now and the company also has a seven-day, no questions asked return policy, according to Deboer. He expects the first quarter of the year to have an additional 20,000-30,000 vehicles online and will be able to be the first to offer a seven-day, no questions asked return policy on new cars.

Lastly, Deborn notes the company made approximately a quarter billion dollars in net profit in the third quarter from dealership acquisitions, which sets up the company well to purchase more in the future.