The company believes it is in course to meet its target for year one of 20,000 vehicle sales and to reach £250 million ($345 million U.S.) turnover. If it meets this target it will have beaten one of its principal rivals, Cazoo, which took almost 12 months to deliver its 10,000th car in November and reached the £100 million turnover milestone in September after 10 months of trading.
Carzam was set up by former Cox Automotive president John Bailey and Peter Waddell who remains CEO of Big Motoring World, a separate independent used car group specialising in BMW sales. Carzam plans to recruit more staff this year to increase staff numbers which are already over 100.
Carzam is competing with Cazoo, HeyCar, Cinch and others that use an online-only model. The trend towards online car sales was growing before Covid-19, but has accelerated over the last 12 months as customers become used to buying big-ticket items online and expect delivery and contactless handovers.
“Carzam puts the customer at the centre,” said Waddell.
“There is no ‘sell’ — the customer becomes their own salesperson. They retain full control. That’s how people are used to making a purchase now. There is no reason why the automotive industry shouldn’t keep pace with other parts of the online retail sector.”
Each Carzam vehicle comes with free next-day home delivery, a 100-day warranty, a 14-day money back guarantee and a multi-point inspection service on each vehicle. It currently has 1,270 vehicles available on the site.
“Carzam was set up in response to the growing evidence of a change in buyer expectations,” said Michael Buxton, Carzam CFO.
“To ensure we remain competitive on price, we have created a business model which tackles inefficiencies in the wholesale market.”
“For some time, we have seen consumers starting to shift to online channels. This situation was accelerated, rather than created, by the Covid-19 pandemic.
“Attractive pricing can only be achieved by smart buying. Carzam has developed data-driven processes which determine the price we will pay for any car at any given time.