Online used car business Vroomo has launched in the UK looking to “shake up” the market.
The business, founded by serial entrepreneur Chris Nkwonta, is the 21 year old’s third venture after launching a property company, Contour Lettings, and a marina investments business called Blueseas Maritime.
Vroomo’s website states: "Vroomo replaces the used car salesman and the used car lot with a platform that connects buyers and sellers in a 21st century way. No haggling, no trips to the dealer or costly multiple trips to sellers' homes, no expensive surprises – and no commission to the guy with the nice suit. Which means a better price for everyone.”
All stock listed on the website will be subject to a 240-point independent check, and a three-month warranty.
Customers can buy or trade in their used car through the website. However, there is currently a restriction on the type of part-exchange vehicles that can be trading in, limited to cars less than fove years old with no more than 60,000 miles on the clock. The current stock listed on the website leans more to the premium end of the market.
The business makes its money by charging a margin between 4% and 9.5% on the transaction value between sellers and buyers, which shows up as "a small difference" between the price Vroomo offers to sellers and the price buyers pay.
Customers that are trading in their car can arrange for an inspector to look at their part-ex at home or at work. Vroomo says: “You will always get a higher price than Webuyanycar or a dealership”.
Vroomo will be offering free drop off and insured seven-day or 350 mile test drives to all customers. The company is also running a seven-day money back no questions asked policy on sales.
The business is also offering what it calls a Vroomo Convierge service which reminds customers when their service or MoT is due and finds the most cost effective technician that will do a home or work visit to do mobile servicing.
Nkwonta said: “Finding the car you bought second hand isn’t quite what you were promised or hoping for is an experience many people, including me, can relate to.
“Multiple trips to a dealership or private seller’s home, inspections and in worst case scenarios, unexpected repairs can be extremely costly and time consuming. We hope Vroomo will take that uncertainty and hassle out of the equation.
“It’s all about transparency and convenience – we take care of all logistics and paperwork, and you know that when you’re looking at a car on Vroomo, it’s gone through all the hoops.”
While the business is in operation, Nkwonta is currently raising further funds for the business through a Seedrs campaign, offering 8% equity to investors.
Steve Boucher - 16/11/2015 16:50
Looking at the stock offered, the "small difference" could be as high as £4000 - that's not a bad commission for the not-so shiny suited Vroomo guys!