German used-car vertical HeyCar was launched in Britain today. The company was first launched by Volkswagen Financial Services in Germany in 2017 and aimed to challenge the dominance of German market leaders Mobile.de and AutoScout24.
HeyCar’s U.K. operations mirror its German business. The new website only sells cars less than eight-years-old, with less than 100,000 miles. Each vehicle undergoes a quality check and comes with a warranty. The company only buys from selected, approved dealers. It offers a range of cars and models. Each listing includes finance details alongside vehicle specifications. Customers can also work out the monthly cost of a vehicle or compare it with similar models.
HeyCar’s new site already carries more than 100,000 listings for more than 50 brands from 1,400 dealers in the U.K. The launch has been backed by a TV marketing campaign, which suggests HeyCar are making a major investment in the U.K. and looking to capture significant market share. Dealers are currently being charged per listing, but this will be changed to a lead generation model after the initial launch.
“The UK used car industry is worth £50 billion, yet it works inefficiently for consumers and dealers,” CEO Mat Moakes said. “Existing websites are often cluttered with ads, eroding consumer trust. Dealers are burdened with rising fees for listing used cars online, which squeezes their margins without a guarantee of leads or sales being generated.
“Our site will be ad-free and we won’t charge dealers a listing fee, encouraging them to display all of their best quality stock.”
HeyCar’s operator Mobility Trader Holding GmbH recieved an investment from Daimler last year in exchange for 20% of the business, cementing the site’s multi-brand approach.
Read a full profile of HeyCar from AIM Group here.