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Carzoos introduces new way to buy used cars
Used car revolution: AP Eagers’ Carzoos concept takes the negotiations out of the used-car buying and selling experience by utilising iPads to network its 110 dealerships to vie for business.
Used cars now able to be purchased via iPads in Carzoos stores in shopping centres
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16 September 2016
ONE of Australia’s largest dealership companies, AP Eagers, has begun selling
used cars in shopping centres from jazzy stores manned by a young team of
“buddies” and the only cars you can see are on iPads.
In a big departure from the usual used-car yard stocked with cars to touch and
feel and drive, buyers at Carzoos get detailed pictures and specifications of
the cars in the iPads instead of looking at cars in the flesh.
The company opened its first store at Westfield Garden City in Brisbane’s south
and will open another at Westfield North Lakes in Brisbane’s north in November.
The Carzoos shops are similar to Apple stores with hosts greeting shoppers by
explaining how you can buy a used car, sell you current car or get finance to
buy a car whether you are buying from Carzoos or not.
The Carzoos operation is linked to the used-car operations of 110 dealerships
in the AP Eagers network which stock the used cars offered for sale on the
In a normal used-car purchase, the valuation of your car as a trade-in, the
sale price of the used car you are buying and the arrangement for a loan to buy
the car are bundled all into the one transaction.
There are negotiations over how much you will get for your car, more
negotiations over the price of the car you are buying and more negotiations
over the deposit and repayments in the load for the car. This can take hours
and is regarded as the most stressful – and disliked – part of buying a car.
At Carzoos, all these transactions are regarded as separate.
The purchase of the old car is a single deal. Carzoos will buy your car even if
you are not buying another car from them or buying another car from another
The purchase is also not linked to the trade-in either.
The sales revolve around the fact that is no negotiation at any point.
Here’s how it works …
When you enter the store the hosts introduce you to a buddy who works with you
via the iPad stock list to find a car you want in your price range.
The prices are those advertised by the dealers which have the cars in stock.
But there is a special treat in store as the buddy touches a button which
reveals a special non-negotiable price that a Carzoos buyer is offered. The
price is based on what Carzoos believes will be eventually paid by a buyer
after hours of negotiations.
So what makes Carzoos think people will buy a car without touching it and
The clincher is that Carzoos offers a money-back guarantee of seven days (with
a limit of 500km). Because you can reverse your way out of the deal within
seven days, buyers are effectively being offered a seven-day familiarisation
and test drive so there is no risk to the buyer – even though the car was not
physically present when they agreed to sign up.
Carzoos even keeps your old car if one was traded so that the owner can get
their old car back.
In thousands of deals so far, less than one in 100 people have wanted to return
their car and half of those bought a different car.
One massive inducement, especially for your car owners, is each car comes with
free fully comprehensive insurance for one year – even for young drivers with
driving blemishes. This is a huge incentive as it gets young drivers insured
for the first time at no cost and gives them 12 months to prove their driving
record so that they can get their insurance renewed after the first 12 months.
Most of the cars featured in the iPads are less than six years old and the cars
also all come with a 120-point check. Carzoos claims 63 per cent of cars
inspected are rejected for sale.
They come with a free one year/175,000km warranty, free roadside assist and
Carzoos will also buy you car independently of whether you are buying one of
their cars or not.
The company offers the seller a “best in market” purchase price.
If you are selling your car, the buddies have special assessment programs in
their iPads to appraise the condition of your car. All the VIN-style identity
details are keyed in and they take extensive pictures inside and outside the
car. Sellers have to agree that the car is mechanically sound and if a later
test drive shows that it is not sound then the deal is off.
At the touch of a button these details are sent to the used-car managers at all
AP Eagers dealerships around Australia to the company’s (wholesale) car buying
division and to its auto auction house.
These dealers then bid for your car. The highest bid, from the dealer who most
wants your car for their stock, sets the price that Carzoos will pay for your
car. In effect it is the best in market price because it has been set
commercially across more than 100 car businesses which are scouring the market
for cars to sell.
Again, Carzoos will buy the car from you this way if you are buying a car this
way or not.
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