Beepi Is Transforming The Used-Car Market With Online, Mobile Shopping
Move over car dealers, Beepi is disrupting the used car industry by handing over the selling and buying of pre-owned cars to our own computers and smartphones.
Startup Beepi was born after CEO and co-founder Ale Resnik had a horrendous experience purchasing a pre-owned vehicle, resulting in numerous hours spent in court. Resnik recognized the need for an easy, trustworthy way to buy and sell used cars. So, in 2010, he founded Beepi with Israeli Omer “Owen” Savir.
The startup – which has expanded to 15 US markets since its inception – has so far raised $150 million, and is valued at $564 million. A year ago, it was reported that Beepi was planning to raise $300 million in a monster funding round that would have valued the startup at a whopping $2 billion. Today, a spokesman for the company declined to comment on the progress of this round.
Wrapped with a bow, delivered straight to your home
If you’re looking to get rid of your car, download the Beepi app and enter a few details about your car and your location. Then Beepi will schedule a time for one of their inspectors to examine your car. If the car passes – has a clean title, no structural damage, and no more than three previous owners, among other criteria – and you agree on a selling price, your car will be published and available for sale on Beepi.
How do you reach an agreement on the price? Beepi developed an algorithm that takes into account the market conditions in order to reach a price that satisfies both the seller and the potential buyer. At this point, Beepi takes over and all you have to do is wait for your check, with a guarantee of your car selling in 30 days or Beepi buying it from you. Beepi will take your car to one of their operation centers and hold it under their own insurance until it is sold or delivered.
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If you are in the market for a used car, you can browse Beepi, fill in a few details and the car will be delivered to you, wrapped with a bow. At delivery, the buyer must show proof of insurance in order for the transaction to be completed. Those who purchase cars through Beepi save an average of $1,706, according to the company, which charges 9-10 percent on each transaction, half of the industry standard. Recently, the startup also launched a used car leasing service.
Changing the way people buy and sell used cars
Beepi’s goal is to fundamentally change the way people buy and sell used cars; however, the founders don’t plan on putting all used car dealerships out of business, as a spokesperson for Beepi told NoCamels: “There is plenty of room for traditional dealers and online marketplaces like Beepi to coexist and thrive.”
In addition to old-school used car dealerships, Beepi is competing against startup Vroom, which is headquartered in New York, and offers similar services.
Cars currently listed on Beepi are priced from $8,000 all the way to $144,000 (for a Porsche). It remains to be seen whether the convenience of shopping for a car with a touch of a fingertip will make consumers more comfortable making such a huge purchase online.
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