If you are in the business of buying and selling pre-owned cars within Latin America, it is extremely important to understand that there is a unicorn armed to the teeth trying to monopolize the industry and leave you without a market.
You probably know who I'm talking about, they are everywhere, or at least that's how I perceive it as I am bombarded daily with their ads and mailings, trying non-stop to buy my car and/or sell me something.
Their name is Kavak, and rest assured, they want to put you and all pre-owned car dealers out of business; their CEO himself says he is "eradicating fraud and insecurity from an industry that is broken."
In this article I will ask the questions that, in my opinion, all dealers facing Kavak should be asking themselves today, in order to help them identify the best ways to compete against "the unicorn" and ensure the continued growth of their business.
Do you think Kavak is the best place to buy and sell a car?
That's what they say, but I'm not very convinced. I have seen many bad reviews and complaints about the service offered by the unicorn... however, we must recognize that they have many competitive advantages. Is it because of the almost 2 billion dollars they have raised? I think so.
That money bought them many things, such as the largest used car inventory in the industry, luxurious facilities in different cities and countries, massive advertising campaigns, and a committed team of thousands of talented people in many areas such as marketing, software engineering, customer service and more, who work with priority on improving the UX or "User Experience", referring to the user experience.
From the moment the customer is aware that Kavak exists, throughout the buying or selling process, and even after the transaction, everything that happens in between is known as the user experience. Kavak has put a lot of effort in this, offering added value with friendly and agile processes. It does'nt matter if it is a purchase, a sale, or a credit application, the simplicity of the process is a priority for Kavak, and that is why many are now opting for the unicorn's services.
Do you have the same or better technology than Kavak?
If not, unfortunately, your business is going to have many challenges, as Kavak is leveraging its infrastructure and digital resources to offer added value that currently very few can offer; this is why we see the unicorn growing exponentially.
The reality is that the pre-owned car dealer who does not react quickly will become irrelevant and obsolete over time. Kavak is not going to disappear, nor is it going to slow down its pace of innovation.
One of the most important technologies for Kavak is its car quote engine. This is the section on their website where a customer can come to quote their car, receive an offer and sell their car.
Many dealers haven't stopped to look at it, but this added value Kavak offers is essential to their business model. First, because of the volume, it would be impossible for them to quote and buy so many cars without a technological tool such as their quote engine. Second and, in my opinion, more important: for a customer, the fact that they can receive a purchase offer automatically from the comfort of their home is a very beneficial added value. This results in a very good experience, and therefore a higher conversion rate for the unicorn, which, again, drives your growth.
"The pre-owned car dealer looking to compete against Kavak has to evolve to being able to offer the customer the same added values."
ANDRES LOZANO V., CO-FOUNDER @INTELIMOTOR
Want to compete and beat Kavak?
Kavak may be very relevant and intimidating at the moment, but what the unicorn doesn't know, is that there is another player called Intelimotor that has created the best technological tools to optimize, automate and grow the pre-owned car dealer business, or in other words, its competition. And when I say the "best tools", I am not exaggerating. Intelimotor's tools are 100% better than Kavak's, we can demonstrate and prove that without any problem, we know how the unicorn operates, and its technology, although advanced, lags behind Intelimotor.
Intelimotor, for example, within its wide range of solutions, offers a fully customizable Quotes Generator to the need of each dealer, which operates better than Kavak's, since it integrates with all the digital marketplaces of pre-owned cars and other data sources (that the unicorn will never be able to obtain) to give the dealer the ability to quote and purchase cars from its website as Kavak does. This tool, in fact, is completely free, as Intelimotor believes that the best for everyone is a decentralized marketplace, not a monopolized one as Kavak is trying to do.
At the end of the day, the pre-owned car dealer needs to offer the same added values as the unicorn if they want to compete. The Quotes Generator is an excellent first step, and it will only take them 5 minutes to do what it took Kavak years and millions to do, but the reality is that the road won't stop there. To really compete they will have to do much more, and it all starts with their infrastructure and technological resources. The good news is that at Intelimotor, we give you all that, so in reality, getting to where the unicorn is, is much simpler than you might imagine.