Carspring: Using E-Commerce to Improve Customer Experience in Used-Car Buying

Maximillian Vollenbroich, a former McKinsey consultant from Germany, moved to London in May 2015 to launch a fintech start-up called Carspring. Using technology and an enhanced selling model Carspring is able to focus on using intermediates between online buyers and sellers of used cars, with the aim of removing the pain associated with the traditional used car process.

Carspring are emulating Beepi and Carvana in the US by introducing the used car seller to car buyer and subsequently cutting out the car dealer completely.

At present Carspring is developing its Amazon-like efficiency in online retailing and building customer trust.

Carspring help by; identifying the car seller, checking that the used car passes a 150-point check, marrying up the used car to a potential car buyer, providing finance for the buyer and delivering the car to the buyer’s door. This is all achieved online as far as possible.

Vollenbroich’s current vision for Carspring is to use the single interaction with the customer. They add value by offering an online unified service which saves the customer the bother of managing the various suppliers of services which they need when buying a car. These include; sourcing the car, providing the insurance, the finance, delivery and warranty for example.

The next stage would seem to be to develop innovative services for the customer after the sale. He refers to the “mobility landscape” – so Carspring may be expected to offer to monetise the car’s downtime in future – perhaps connecting in with car sharing schemes.

He also refers to the car becoming a “retail space” for non-car related products suggesting that he also sees opportunities to leverage car connectivity in future.

One to watch.

At present Carspring is developing its Amazon-like efficiency in online retailing and building customer trust.

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