Olivier Vincent, CEO of Autozen
A new service launched in Canada in February 2021 to allow consumers to more easily, quickly, and safely sell their used vehicles to dealers.
Autozen is a managed marketplace connecting consumers to dealers; it is currently in the beta testing phase in British Columbia, although there are plans to expand to other provinces across the country. So far the company has more than 50 rooftops on board, and expects to reach 150 by the end of March.
“We are connecting consumers directly to dealers,” said Olivier Vincent, CEO of Autozen, in an interview with Canadian auto dealer. “And the idea is to create a new category for consumers on how to sell their cars.”
Vincent said the current process available to consumers is to either trade-in their vehicle, purchase a new one, or sell it privately — the latter of which is sometimes described as a “brutal” process. Autozen’s goal is to reduce some of the stress involved in the car-selling experience and process for consumers.
“We want to ease that, to simplify that,” said Vincent. “And on the other side of the marketplace, you have all these groups of dealers and they’re all hungry for used cars. It’s often as hard to source a good used car than it is to sell it, and unfortunately COVID does amplify that problem.”
On the consumer side, Vincent said there are people that “just want to let go of their car,” and as long as they receive a reasonable value for it, they will be happy to let it go. On the dealer side, the need for used vehicle inventory is still a reality due to the pandemic.
To make life easier for both parties, Autozen created a four-step process — the first of which involves having consumers offer some information about the vehicle (such as year, make, model, mileage), without having to complete any lengthy questionnaires or provide photos. The company then offers an estimated value range for the vehicle, and if the consumer thinks the range is reasonable, Autozen will send an inspector to do a 140-point review of the vehicle and take photos — similar to what a sales manager would do at the dealership during a trade-in, but more in-depth.
“We bring back these inspections and within 24 hours we usually have an auction where it’s very similar to what TradeRev or Eblock would do,” said Vincent. “All the dealers give their best offer and we bring the best offer to the seller. If they like the offer, we take care of the paperwork, the payment, we come pick up the car and (we) deliver it to the dealership. (It’s) as simple as that.”
Vincent said, theoretically, the process can be done as quickly as two or three days from the moment a consumer is on the platform and the car is gone. From the dealer’s standpoint, he said the onboarding involves asking questions around the type of vehicle they are looking for (make, model, mileage, etc.) — the type of vehicles Autozen will need to hunt for.
The vehicles brought to the platform are also relatively recent — these are not the vehicles that could not be sold at auction. And if an inspection reveals too many issues with the vehicle, Vincent said they will not bring it to their marketplace. As a result, he said dealers will see a consistent and “pretty large influx” of cars that are of a high quality, and with a high quality inspection attached to it.
“That’s really what we’re doing with all of those. And yes, they will give us the best offer, and as they (the dealer) wins the auction and the seller accepts the offer, we’ll take care of everything and deliver the car to them,” said Vincent.
Autozen keeps the dealer one-step removed to manage the process for them, but at the end of the process, when it comes time to manage the transaction, the dealer will have the opportunity to interact with the consumer.
“It’s a good time to embrace these new, more modern technologies and platforms, because the consumers want them,” said Vincent. “It might be a little scary at times, maybe (it will) give you a bit of vertigo, but it’s really full of opportunities for all the dealers that really embrace the technology. (And) that makes it a very exciting time to be in auto tech.”
Autozen has so far raised approximately $4 million, and its plans are ambitious. The company wants to eventually expand into other provinces, such as Ontario and Quebec, and into the United States as well.
