The UK’s used car industry is valued at around 53 billion euros. That’s according to the Society of Motor Manufacturers and Traders (SMMT). But – traditionally – there’s also been a culture of mistrust between consumers and dealers.
Heycar is a new online marketplace for used cars that’s just launched in the UK. It says it’s on a mission to disrupt and bring greater trust and transparency to the car market.
It’s owned by Mobility Trader Holding GmbH, whose shareholders are Volkswagen Financial Services and Daimler Mobility.
Heycar’s CEO Mat Moakes, says: “Buying a used car can be like a lottery, you don’t know what you’ll get. Existing websites are often cluttered with ads, eroding consumer trust. Dealers are burdened with rising fees for listing used cars online, squeezing their margins without a guarantee of leads or sales.”
He explains: “We’ll offer a simpler, more effective solution for both used car buyers and dealers. Our site will be ad-free, improving transparency and consumer trust. heycar won’t charge dealers a listing fee, encouraging them to display all their best quality stock. After the launch phase we will charge on a lead-generation basis, guaranteeing a win-win for our dealer partners.”
Talking to Auto Futures, Moakes explained what sets it apart from rival services.
“We live in a world where buyers are overloaded with choice, haggling is seen as a necessary evil, and buyers are untrusting of the quality and price of used cars. At the same time, dealers are being struck with heavy and continuously rising fees for listing used cars online, squeezing their margins without a guarantee of leads being generated. We’ve developed heycar to solve these pain points and improve trust and transparency for both consumers and dealers.”
“The platform uses the latest technology to offer a simpler solution. We focus on high quality cars and only list cars from selected, reputable dealers that come with a warranty, are under 8 years old and have less than 100,000 miles on the clock,” he adds.
Heycar is launching in the UK following the brand’s foundation in Germany two years ago. In Germany it’s rapidly grown to offer an inventory of over 400,000 quality used cars from 4,000 dealerships. This makes it one of the top players in the German market.
“We are pleased that heycar has now taken the first step towards an international expansion. Following the positive reception of heycar in Germany, we now want to serve dealers and customers in the United Kingdom just as successfully and thus further expand our used car business”, says Frank Fiedler, CFO of Volkswagen Financial Services AG.
Moakes tells us that the brand will also help support greener and cleaner driving.
“We have more than 3,000 electric or hybrid cars currently available on the site, and this will continue to grow in line with industry-wide rollout. Our website allows customers to easily filter for electric and hybrid cars, too. We also show whether each car is ULEZ compliant, helping consumers make informed decisions on green driving.”
He also gave us a vision of how he sees mobility developing over the next decade.
“We see urban mobility moving further towards a fully interconnected transport system, with a greater urban/rural split, and with larger connectivity between different modes of transport – less centred around individual car ownership, and certainly heavily electric. heycar is committed to adapting to meet future mobility needs.”