Buying and selling used cars can be a difficult process. There is a great deal of the stress as customers have a hard time trusting car dealers. In DMEautomtive’s 2014 survey of 2,000 automotive customers, only 20% of the respondents perceived car dealers as trustworthy people. Alternatives to car dealers have involved using sites such as Craigslist or eBay, but these avenues tend to be even riskier and are sometimes even less trustworthy. With a clear need for more used car buying options, the tech industry has stepped in to try and provide a solid, trustworthy alternative. Some of the best, new online alternatives for buying and selling cars online include: Beepi.com, Instamotor and Mojo Motors.
This company is a licensed car dealer in California and accepts cars from private sellers in Arizona and Texas as well. When you list your car on the website, you get a guaranteed price that will never change. This means that there is no negotiation between buyers and sellers. After you have received your guaranteed price, a Beepi inspection will take place. If it passes inspection, the site guarantees to sell the car within 30 days. Beepi offers free car delivery to buyers in 200 cities, which means the buyer and seller never even need to interact.
However, getting your car on Beepi is not easy. Only one out of every three cars ends up getting approved. Furthermore, the car needs to be six years old or newer, accident free and the title has to be completely clean. The goal of Beepi is to ensure that each customer receives the absolute perfect car.
Instamotor is a free mobile app available on iOS (coming soon to Android) across the United States. However, currently most users are based in California as the inspection locations are currently only available in the Bay Area (Los Angeles location will be opening soon).
Instamotor offers a three-day buyback guarantee, a free Carfax report, an inspection at an Instamotor inspection station and a three-month 3000 mile mechanical guarantee. Instamotor does not actually handle any transfer of money or title, it’s goal is to simply bring buyers and sellers together in a trustworthy atmosphere. Most buyers pay the agreed upon price with a cashier’s check or certified check. Instamotor is working on a check verification feature to avoid problems involving check fraud.
The company does not even take a cut of the transaction. It earns money through their referrals to auto insurers. For each of the vehicles that are off our app, we will get insurance quotes and insurance companies give a small commission on that insurance purchase. Buyers can still benefit from the app, with inspections and guarantees, even if they do not purchase insurance through the application.
This website is not a peer-to-peer marketplace like Beepi and Instamotor, however, it does offer valuable information and an effective way to make a car purchase. The site uses inventory feeds from car dealers, lets users follow cars they are interested in and receive alerts if and when dealers drop their price. The idea for the company results from the fact that dealers make more money if they can turn their inventory as fast as possible. Therefore, they tend to cut the price of the cars every 5-15 days. The average car has about 3 price drops, totalling an average of $1,000 in price reductions. With Mojo you can follow the price history as well as the number of others following the vehicle. You can also reach out to the dealer directly through the website to arrange a test drive. Some dealers even offer an extra discount to Mojo users. This site is also free to car buyers, Mojo creates revenue through selling premium positioning and subscriptions to car dealers.
For more on this topic, check it out at money.usnews.com.