Anyone who has ever traded in a car to an automobile
dealer wonders: Could I have made more money, if I‘d sold it myself?
Dealers know that new-car buyers usually lack the time
to market their Japan discounted vehicles, or
dread the chore of showing them to potential buyers — and make their trade-in
offers accordingly. A variety of start-ups are emerging, however, aiming to
make it easier and more lucrative for car owners to sell their vehicles
privately.
“Consumers are fed up and they’re looking for
different models,” said Tracey Trachta, chief marketing officer of
Houston-based Carphoria, which solicits bids for used cars from multiple
dealers in different markets, and takes a fee of $149 when they sell. Another,
CarLotz, with locations in Virginia, and soon in North Carolina and Georgia,
uses a consignment model; owners can drop the car off at the lot, and pay a fee
(about $900) for the company to market and sell it. Now another start-up,
Carlypso, is trying an approach that seeks to use technology to take the hassle
out of marketing the car and scheduling test drives.
Carlypso was started last year by two Stanford
business school graduates, Christopher Coleman and Nicholas Hinrichsen, who got
the idea after helping some classmates sell their Japanese
vehicles for Myanmar. Dealers typically make an offer that’s at least 25
percent below a car’s value, they said, so they aim to help capture more money
for sellers while making the process convenient. The service operates primarily
in California, but has tested sales in eight other markets, including New York,
and plans expansions by early next year; recent sales have included a Mini
Cooper in Manhattan and a BMW in rural Maine. Sellers sign up on Carlypso’s
website, listing details like the car’s year, model and condition. Carlypso
sends a representative to inspect the car, take photos and install a G.P.S.
device and lock box, before listing the car for sale on various websites.
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