PayCar is collaborating with the Direccion General de Traffico (DGT) — the Spanish department of motor vehicles — to verify vehicle information and offer online title transfers. Its secure payment service is a collaboration with Bankinter, which receives and holds payments until the sale is complete.
According to Coches.com general director Gerardo Cabañas, PayCar addresses a market of 1.2 million annual used-car transactions.
Common security concerns include sellers misrepresenting themselves, which happens in 10 percent of cases, Cabañas said. Mileage tampering affects about 1.4 million cars on the road, according to Carfax data. DGT data on ownership, accidents and inspection records help increase buyer confidence in the vehicle’s condition, while secure payments eliminate the need to pay strangers in cash.
The next phase of PayCar’s development will offer financing and a one-year warranty, the company said, without a specific timeline.
According to El Pais, Coches.com has several thousand auto dealers on its main portal — 600 of them paying customers. It sells around 1,000 new cars each month, amounting to gross monthly sales of €20 million ($22.7 million U.S.).
The company is majority owned by founder Iñaki Arrola, who holds 42 of the capital. Cabañas is a 6 percent shareholder. Other investors include Marek Fodor, with 4 percent, and Ticketbis founders Ander Michelena and Jon Uriarte, who hold 14 percent.
Coches.com is unrelated to Coches.net, which is also a leading automotive site in Spain. Coches.net is owned by Schibsted.