The used car market has to innovate!
Anyone who’s ever bought or sold a used car has experienced both the pleasure and pain of the process. It’s a painstaking one and that’s a real surprise too, given that the used car industry is huge (120 million cars were sold globally in 2017) and there’s more choice than ever. The truth is, it should be so much easier.
As a seller, you simply cannot sell your car swiftly and for a full retail price because there are no tools and resources necessary to make it happen. There is no dedicated marketplace for private sellers that can attract data-driven buyers and instill confidence and integrity with what they sell. Instead, you have to compete for views and try to show your car to as many potential buyers as possible. In addition, you also have to organize finances, deal with tons of paperwork, and prepare all the relevant documents for inspection, spending massive hours in the process. Alternatively, if a seller opts to deal with dealers or online car buying services (which they are practically forced to), sellers can get up to 25% less than the already low trade-in price.
From the buyer’s perspective, things aren’t great either, if not worse. Hours upon hours are spent on research, after which a test drive needs to be organised. Even if they do negotiate a fair price, buyers also have to sort out things like registration and financing. However, the biggest obstacle is the overwhelming lack of trust in private sellers, especially from the financial aspect. There’s always the fear of the unknown, a risk that the seller knows more about the car than the buyer. Just like their selling counterparts, buyers are directed to make their purchases from dealers with their bloated prices (overhead costs, personal wages, storage costs, etc). Add to the fact that car dealerships have the ability to offer services such as warranties, pre-sale inspections and background check for a more confident purchase, as well as various finance options to make the experience even smoother.
The end result? Both the selling and buying sides are short-changed all the while spending unreasonably large amounts of time. The seller sells for a lower suggested retail price while the buyer gets a lower value for his money at a higher price. Thus, the need for an innovative approach to this particular problem is evident.
The solution: autoXchange.io, a global ecosystem & marketplace based on entirely on blockchain technology. In essence, a marketplace the used car industry needs: one that is able to maintain the credibility of the entire process, from vehicle documents to the final transaction process, so that the users have all the assurance they need and ultimately, get the most value for their money.
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