After a year in stealth, CarWoo (YC S09) launches today
venturebeat.com
Let us know what you think... lots of posts coming about our YC experience and how we stayed under the radar for over a year, how we raised money, all the good stuff.
venturebeat.com
Let us know what you think... lots of posts coming about our YC experience and how we stayed under the radar for over a year, how we raised money, all the good stuff.
edit: I'll expand so you don't get confused by my comment. I drop by auto sites every now and again and customize a car to my liking, as a game. The idea of getting a car is playful. Most of the time I'm not seriously thinking of buying the vehicle.
Now on your site, I can't customize a car. I can't even see what your site does. I could see myself playing around with models and brands and see a button at the end "We'll have 5 auto dealers bid on your dream car, $50. You'll save way more than $50 thanks to our competitive bidding process."
Or you can alienate all the random drop-ins forcing them to sign in, or associate their real life facebook profiles with some random site on the nets.
The value of your site appears to be in the bidding process. Not the customization process.
The article makes me think the entire streamlined process can result in a signed contract in a relatively short period of time, without the customer ever seeing the vehicle that s/he had already into a legally binding agreement for. This could obviously result in all kinds of problems. Perhaps the article has simply left out a few steps...?
Congrats to the CarWoo team for launching!
1) I know there are other companies that do something somewhat like this. My auto insurance company has a car buying service and I'm pretty sure it is run by a 3rd party. The business model is presumably different though (sell to auto clubs, etc).
2) The dealers it lists for me are mostly really far away. And I mean "I've never heard of that town, let's google maps it, wow, it's 5 hours of driving away!" far away.
Spend some time around a car dealership and you'll find buyer behaviour that seems very unrational to a careful person, but then the spread of car buyer is pretty much the spread of the population. As such, dealers need a certain amount of inventory to keep the showroom full and satisfy buyer demands.
Finally, you'd be surprised how many people can be upsold on expensive features (sunroof, leather, alloy wheels) with high margins because the car they are intending to buy is sitting right there, on the floor, ready to go, with just a teensy-weensy few more features on it. You wouldn't get upsold at McDonalds if you had to wait for the bigger fries, the same at dealers. Having the up-sell sitting right there, in front of the buyer, sometimes works with getting them to buy more.
The flip side of this is that certain franchised dealers are forced to carry inventory by the manufacturer. The manufacturer helps out with the inventory costs by giving better finance on the inventory, but as a flip side they basically force-feed the dealer with stock. It's up to the dealer to move that stock. I guess from the manufacturers point of view, it gives them a certain level of predictability with their month-to-month sales and keeps the dealers working hard to move cars.
I'd like to see the specific options package listed (checkbox form maybe?) vs. having to write the features I'd like. That way there is really no negotiation that could go on.
One of my worst experiences was trying to play the "let dealers compete" game online. I'd get 4 to 24 hour turnaround times on emails, which just wasn't going to work. As a bonus, I still get several emails a week from dealers still trying to get my business. (Thankfully on my semi-throwaway account.)