Saturday, September 12, 2015

Second Hand Car-Tech UK

According to British Car Auction reports 7.4 million used cars were sold in the United Kingdom in 2014, an increase of roughly 4% on the previous year. Private-to-private used car sales made up roughly one third of that total, around 2.8 million, with dealerships making up the rest. The value of the entire UK used car market at the end of 2013 was believed to be £42.7 billion, £6bn more than the new car market.

These are eye watering figures, but fairly logical. Nearly 80% of households in the UK have at least one car, and half of those have more than one, changing them every five years or so; there are nearly 40 million vehicles on the UK’s roads. It’s projected that there may be as many as 44 million cars in the UK by 2020.

With so many cars being traded in the market, it is an extremely competitive one, even more so when we consider that as cars in the UK are right hand drive, they tend not to get exported.

Interestingly, for such a huge market, not many dealerships enjoy the kind of reputation that makes them stand out from the crowd. Cargiant is the largest dealer in the UK, responsible for the sale of approximately 700k cars each year (nearly 10% of all cars sold), but there are thousands of other recognised dealers. The market is fragmented and in terms of customer service or value for money, no one brand stands out.

Double Is Always Better Than Single

A new startup, Carspring, wants to change all this by taking a digital approach to the buying and selling of cars. While their online platform acts as an intermediary between buyer and seller, their customer service is on hand to handle all of the paperwork, getting the cars inspected according to a stringent 150+ checklist, fixing any issues that arise, and then personally delivering the car to buyers.

They say it is a more customer focused approach which relies on leveraging technology to ensure both buyer and seller receive an end-to-end service that is an improvement on the “caveat emptor” attitude of many car dealerships, and particularly private sellers.

It seems like today there are startup businesses everywhere invading industries regarded as too traditional and closed to new ways of doing things. You’ve heard of FinTech, Fash-Tech, and Health-Tech; get ready for Second-hand car-Tech,

Disclaimer :- Following article come from Forbes

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