Free Doorstep Inspections And Instant Payments Driving The Supply Side of Used Cars

Barely 30% of cars available in the preowned-car market meet the quality standards of an organized full-stack online used-car platform such as Spinny. The high standards are necessary because almost 96% of used-car buyers remain unsatisfied with their experience of purchasing a preowned car as per a recent survey.

But Spinny follows strict norms such as a 200-point inspection and quality checks, including limited ODO runs as well as checking the exterior and interior conditions. The company believes the quality of its cars comprises the cornerstone of the business. 

Myriad Checks

Scouting for and procuring the right cars is a major task for the organized preowned-cars platform as it believes in providing delightful car-owning experiences to customers. About 75% of cars on the platform are directly sourced from individual sellers via requests on company’s website as well as other listing platforms. As a result, the benefit of the best price is passed on to them in the absence of middlemen. 

Reflecting the demand dynamics, key customers are in the 25-35 age bracket. Recent weeks have seen a sharp increase of female customers since Spinny offers a safe, secure, convenient and delightful experience at every stage of the sale. 

The process to sell a car is designed keeping in mind minimal interactions and completely transparent transactions. The seller views an instant quote on the website, followed by a free doorstep inspection and instant payment if the car in question ticks the right boxes.

Since the beginning of 2020, an average of 1000-plus cars per month keeps getting added, subject to the availability of cars in good condition in specific cities. Despite the current COVID-19 constraints, Spinny has been able to stay close to its pre-pandemic numbers, where Delhi-NCR and Bengaluru are contributing to 60% of the inventory, followed by Hyderabad and Pune.

The company reveals that despite the current coronavirus conditions, there is no difference in the supply side price value between the pre- and post-COVID period. Again, this is because the prices are calculated based on the direct inspection of cars. In the absence of middlemen, the price benefit is passed on customers. Due to this, there is no room for subjectivity or whimsical pricing.

Demand Issues

Similarly, on the demand side, the prices are calculated as per the detailed 200-point inspection test under the company’s ‘Fixed Price Assurance’ scheme. The strict quality protocols in buying or selling cars directly to customers have ensured there is no significant impact in prices either on the supply or the demand side. 

The company tracks the models customers are seeking via tracking tools, website searches and market trends. The initial lockdown phase was challenging as there was a surge in demand for premium hatchbacks and entry-level sedans in the Rs300,000 to Rs500,000 range, driven by the changing needs of customers. In meeting the evolving demand, Spinny pushed online and offline efforts, scouting for quality cars to provide safe and economical personal mobility options to customers. 

Spinny is rigorously following the necessary precautions on COVID-19 as per WHO guidelines with customer comfort and safety a top priority. This is done through a zero-contact sales approach. Once on the website or the app, users go through a touch-free process in selling a car at the best price.

The first step is to procure a quote online. Following this, using the Aarogya Setu App live, executives trained in social distancing conduct a doorstep inspection at the customer’s location for the final price quote. After the agreement, the customer is paid on the same day without paperwork hassles as this is handled by Spinny.

In the words of Niraj Singh, CEO & Co-Founder – Spinny, “The automotive consumer’s behaviour is increasingly being altered by the ongoing COVID-19 pandemic. As health and hygiene are paramount, Spinny is leading the way in providing a safe sales experience in the used-car segment. Even as lockdowns and social distancing norms become the new normal, Spinny’s customer safety initiative #WithExtraCare is meant to set industry standards in safe, contactless transactions. Therefore, we have been witnessing an increase in inquiries from customers wanting to sell their cars.” 

The used-car platform has implemented multiple measures in preventing risky transactions for the safety and security of its customers. These include doorstep inspections, employee and car hygiene as well as providing a customer safety kit. All company executives adhere to social distancing norms while attending to customers. Their temperature is screened daily and they are also provided safety gear. Moreover, each car is sanitized thoroughly before and after an inspection. 

Finally, every customer receives a complimentary safety kit comprising masks, gloves and hand sanitizers. While the pandemic’s potent presence may be temporary, lasting for a year or two, the benefits customers are beginning to enjoy in buying preowned cars will remain a permanent feature.