Discussion
Wasn't sure whether to post this in car buying but thought it may be of general interest.
Just read a short piece in The Sunday Times Business section that reports the founder of Zoopla, Alex Chesterman, is starting a used car business with a different modus operandi from the norm.
He has raised £30 million and intends to buy thousands of second hand cars, refurbish them and sell them online. He promises to deliver them to customers homes within 48 hours and offers a 7 day free returns policy. Intends to start selling next summer. As per title the business will be called Cazoo.
Not sure what I think of this idea as a test drive and inspection of any car I'm buying is very important, but I suppose the returns policy could swing it if the price of the car was right.
Any thoughts ?
Just read a short piece in The Sunday Times Business section that reports the founder of Zoopla, Alex Chesterman, is starting a used car business with a different modus operandi from the norm.
He has raised £30 million and intends to buy thousands of second hand cars, refurbish them and sell them online. He promises to deliver them to customers homes within 48 hours and offers a 7 day free returns policy. Intends to start selling next summer. As per title the business will be called Cazoo.
Not sure what I think of this idea as a test drive and inspection of any car I'm buying is very important, but I suppose the returns policy could swing it if the price of the car was right.
Any thoughts ?
Will certainly be interesting to see how it performs. It’s not particularly revolutionary, cars are bought without in-person viewing more and more though admittedly not with a seven day return policy.
This return policy could potentially be what limits Cazoo, they will need to be preparing the cars to a very high standard, I imagine, in order to limit the amount of customer returns and the cost of logistics in honouring them will only eat in to what will be already tight margins.
This return policy could potentially be what limits Cazoo, they will need to be preparing the cars to a very high standard, I imagine, in order to limit the amount of customer returns and the cost of logistics in honouring them will only eat in to what will be already tight margins.
Toaster Pilot said:
Sounds like a huge failure waiting to happen but it’ll be interesting to watch.
My thoughts entirely and I don't get the "7 day returns policy"; under distance selling rules a consumer has 14 days to return a product purchased anyway so this 7 day thing isn't anything special. HTP99 said:
My thoughts entirely and I don't get the "7 day returns policy"; under distance selling rules a consumer has 14 days to return a product purchased anyway so this 7 day thing isn't anything special.
Maybe the nuance is free collection. I may be mistaken but I think the 14 days also means dealers can make a charge for collection IF it is made clear in the terms at point of signing? I may be wrong.LarsG said:
It will either be the best way to buy a car or a total disaster.
Not sure what the refurbishment entails? However he will have a ready stock of ex-PCP cars he will probably be able to buy cheaply in bulk.
Where are these cheap bulk cars? Let Arnold Clark, Stratstone etc know will you?Not sure what the refurbishment entails? However he will have a ready stock of ex-PCP cars he will probably be able to buy cheaply in bulk.
Toaster Pilot said:
LarsG said:
It will either be the best way to buy a car or a total disaster.
Not sure what the refurbishment entails? However he will have a ready stock of ex-PCP cars he will probably be able to buy cheaply in bulk.
Where are these cheap bulk cars? Let Arnold Clark, Stratstone etc know will you?Not sure what the refurbishment entails? However he will have a ready stock of ex-PCP cars he will probably be able to buy cheaply in bulk.
What's the USP? You can already buy a car online, get it delivered and return it.
£30 million isn't going to get him very far. Car Gurus have burned through more than that just on advertising as I understand.
Access to stock? Trying asking every large dealer group/ car supermarket how easy they think it will be for Cazoo to get tons of good, well priced stock in the current market given the current focus on selling used. And £30 million isn't going to buy him much stock.
"Buying a car should be no different to buying any other product online today." - Can you buy a house online on Zoopla just like any other product? I'm sure he'll say it's different - so is buying a car.
If he isn't going to buy the stock himself - which I would doubt - he's going to have to change the attitudes of both consumers and dealersin double quick time.
Looking forward to seeing how Cazoo does, but I won't hold my breath. Hopefully, he has spotted the magic ingredient that Broadspeed, Jamjar & Tesco all missed
£30 million isn't going to get him very far. Car Gurus have burned through more than that just on advertising as I understand.
Access to stock? Trying asking every large dealer group/ car supermarket how easy they think it will be for Cazoo to get tons of good, well priced stock in the current market given the current focus on selling used. And £30 million isn't going to buy him much stock.
"Buying a car should be no different to buying any other product online today." - Can you buy a house online on Zoopla just like any other product? I'm sure he'll say it's different - so is buying a car.
If he isn't going to buy the stock himself - which I would doubt - he's going to have to change the attitudes of both consumers and dealersin double quick time.
Looking forward to seeing how Cazoo does, but I won't hold my breath. Hopefully, he has spotted the magic ingredient that Broadspeed, Jamjar & Tesco all missed
Tesco tried something similar in 2011, look how that turned out.
https://conversation.which.co.uk/shopping/buy-car-...
Isn't this an idea that gets tried every few years, fails and is then forgotten about until the next person thinks they can make it work.
https://conversation.which.co.uk/shopping/buy-car-...
Isn't this an idea that gets tried every few years, fails and is then forgotten about until the next person thinks they can make it work.
Joey Deacon said:
Tesco tried something similar in 2011, look how that turned out.
https://conversation.which.co.uk/shopping/buy-car-...
Isn't this an idea that gets tried every few years, fails and is then forgotten about until the next person thinks they can make it work.
That was new cars though, rather than used?https://conversation.which.co.uk/shopping/buy-car-...
Isn't this an idea that gets tried every few years, fails and is then forgotten about until the next person thinks they can make it work.
Vaud said:
Joey Deacon said:
Tesco tried something similar in 2011, look how that turned out.
https://conversation.which.co.uk/shopping/buy-car-...
Isn't this an idea that gets tried every few years, fails and is then forgotten about until the next person thinks they can make it work.
That was new cars though, rather than used?https://conversation.which.co.uk/shopping/buy-car-...
Isn't this an idea that gets tried every few years, fails and is then forgotten about until the next person thinks they can make it work.
"Used car trade needs a wake-up call
Tesco’s actually taking quite a risk by getting into the used motor trade. It’s the UK’s most complained-about industry – in fact, Tesco’s launch came just days after the Office of Fair Trading rapped the knuckles of webuyanycar.com for misleading customers."
Joey Deacon said:
No, it was used :
"Used car trade needs a wake-up call
Tesco’s actually taking quite a risk by getting into the used motor trade. It’s the UK’s most complained-about industry – in fact, Tesco’s launch came just days after the Office of Fair Trading rapped the knuckles of webuyanycar.com for misleading customers."
Ah yes, my error."Used car trade needs a wake-up call
Tesco’s actually taking quite a risk by getting into the used motor trade. It’s the UK’s most complained-about industry – in fact, Tesco’s launch came just days after the Office of Fair Trading rapped the knuckles of webuyanycar.com for misleading customers."
Insight here:
http://cardealermagazine.co.uk/publish/exclusive-t...
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