From buying a car on your smartphone, to qualifying for a loan and autonomous driving, technology has been steadily encroaching on the automotive industry and 2017 saw three technology companies taking the next step in this Auto-Fin- tech revolution. Buying a car online has dramatically changed the financial aspect of car ownership. Three technology companies; Blinker, VinAdvisor and RevdApp recently took to TweetChat with Michelin to discuss what they’ve seen from their customers and what customer demands mean for the industry at large.
Note – Here is a video conversation of the 3 startups -
These three companies represent three distinct aspects of car buying online and this is what they had to say about where the industry is headed and how it will impact a customer’s financial interest in car ownership.
Blinker is a car app that helps you buy and sell cars, and it is determined to make used car lots a thing of the past. Its leaders have seen some interesting trends on their platform. Namely, that apps like these are a win-win for both buyers and sellers. Blinker buyers are saving about $2,600 per transaction and sellers are getting about $3,700 more than they would have if they traded their car in. With an average sale price of $12,500, the app split the commission with the seller which is a small cut compared to the 30% that would have gone straight to the dealer. Blinker’s disruptive technology may not put car dealerships out of business just yet, but customers seem happy enough to suggest a long-term change toward greater control and transparency in the car buying process that leads to significant savings on both sides of the deal.
Transforming new car buying is VinAdvisor’s mantra and according to CEO Jim Dykstra, that all starts with price transparency. “Why do consumers hate car buying? No price transparency,” answered Dykstra. “Ask a question, get asked a question. Always seems like the answer requires a dealership visit.” Dealer legacy sales practices of charging different prices for new cars, manipulating trade-in values, offering different finance and lease rates to each customer for the same product costs consumers thousands of dollars. Startup and auto industry veteran Dykstra wants solve the problem by placing the data in the customer’s hands by creating a shopping cart experience to easily compare the total price of any combination of vehicles. Empowered, consumers can now write an offer, negotiate final terms online, then set a time to sign and drive in less than an hour. Save time, save money and always be sure. It’s your turn to drive @VinAdvisor.
The RevdApp is a car sharing app that helps drivers track their miles and information. More than that it helps people loan out their cars for cash. Whether it’s an exotic Ferrari or a Civic, the owner sets their rental price to take it out for a day or an hour. All applicants are vetted thoroughly by RevdApp in order to reduce chances of accident, theft, or injury. It’s the app’s function to facilitate the connection between owner and driver, and it may be a sign of how people choose to get around in the next few decades. The CEO of RevdApp Filipe Pinto observes: “We are witnessing that people with whom we spoke 12-18 months back and who were vehemently opposed to sharing their cars, especially those who own exotic cars, are now coming back to us to know more about our technology identifies responsible drivers. We identify responsible drivers, and the most well maintained cars, to deliver safe and fun experiences.” Whatever is in store for drivers, it seems as though we can expect significant and disruptive changes on the horizon. Technology is not slowing down and we’re likely to see more car transactions taking place outside the dealership, and more people taking part in sharing economy. From the evidence I’ve seen in and heard, the future is bright for customers and will lead toward greater transparency when it comes to buying, owning, and selling a vehicle.