For a long time, buyers have shied away from the used car domain in India while in the west, for every new car sale, 3 used cars are being sold. However, with the searches for used cars getting doubled from last year, it seems that the scenario is changing now. In June, more than one lakh searches for used cars were made (all over india), a 58.3% rise on Y-o-Y basis. Factors such as increased internet penetration and growing dissemination of information to people are serving as driving force, making pre-owned cars an economical alternative to new cars.
In June 2015, four motor enthusiasts from different backgrounds recognised the growing potential in this space. Niraj Singh (Founding partner at Outbox Ventures), Ramanshu Mahaur (Adobe), Ganesh Pawar (Ex-Flipkart) and Mohit Gupta (Ex-Flipkart) co-founded Spinny, a pre-owned car online marketplace, based in Gurgaon.
The founders’ aim is to become a one-stop tech-driven platform for buying used cars while taking care of all the touch-points to keep ‘Customer Convenience’ at the centre of every experience.
According to Niraj, “The major roadblock has been the asymmetry of information present in the process of used car transactions.” The used car market is highly unstructured with independent dealers and curbsiders dominating a large chunk of the market. “The Information asymmetry involved in the process leads to the problem of moral hazard, thereby making independents charge anywhere between 10-30% margins on cars,” he added.
As claimed by the founders, Spinny is all about bringing transparency and convenience to the used car buying and selling experience. Not only can people browse different types of cars on the portal, they can also look for other value added services . This includes services such as inspection of the cars, test drives, registration transfers, providing warranty on cars to buyers, etc.
How it helps Buyers and Sellers?
The portal is bridging the gap between buyers and sellers. Buyers can get profitable and secured deals, sellers can get right price for their used vehicles without much hassle.