by Devin Koskan
Every wonder why there are so many sites out there trying to sell cars? & none of them have dominated like Apple or Google? KosLo will!
About this project
1)People do not enjoy the car buying experience. There is so much time & money wasted. 2)Dealerships have enormous pressure to hit sales goals. They buy 3rd party leads that only close at 5-12% rate. They also list on multiple costly sites to try and hit sales projections. No current site truly benefits the dealership and is just another costly source to try to sell their vehicles. 3) Rental companies do not have a good source to sell their low mileage year old vehicles. Currently they sell them for a loss at wholesale auction. Customer segment is anyone between 20-50 years old in the market to buy a new or used car & also parents w/teenagers between 14-18. Primary target market is value & entry level car shoppers. Secondary market is entry level luxury
For Customer: *System/software handles entire car search, price negotiation, shipping negotiation, selecting of financing, and selecting the item to purchase all automatically. *Entire process only takes five minutes of consumers time *Simply tells us what they want to purchase initiate financing through us *Given top five matching choices with pictures and CarFax report *We negotiate shipping. *Trade in request sent to all matching dealerships. Service is 100% *Free to the customer For Dealership: *Simply tell us what brands they sell. Do not have to link to our system. *When we get a request for matching brands we send bid request *Dealerships pay for nothing unless consumer chooses their item. *Dealertrack financing
1) Inventory – KosLo does not have inventory so we do not have a big carrying cost; 2) Employees – The KosLo system handles the entire process automatically so there is not a need for a lot of employees, which will keep our overhead very low; 3) Receivables – The fee ($50) is collected upfront from the dealership before they are given the customer’s information, ensuring that we will never have to chase our money. To enter a bid, a dealership must have a credit card on file or a pre-bought package. Once the customer selects their vehicle, the selling dealership is debited the funds and once funds clear, the dealership is given the customer’s information to complete the transaction.
Going to market:
Through a strategic social media campaign we are targeting people 20-50 years old in the market to buy a new or used car as well as parents with teenagers between 14-18 years old. Based on market research and analysis, KosLo identifies its primary target market as value and entry-level car shoppers who prioritize traditional product features, such as fuel economy, safety and comfort. Among these shoppers the preference for enhanced vehicle lifespan has gained traction across more recent surveys(KPMG). KosLo identifies its secondary target market as entry-level luxury shoppers who are focused more on technology and mobility features, styling and overall value, but want to skip the time-consuming luxury brand experience.
There is no other system out there that can handle this entire process automatically which gives a clear advantage from an efficiency stand point. If sites like Carwoo would have had our system, they would have never failed. Our next competitive advantage is that we do not charge the dealership anything to use our system & the only time they pay anything is if the customer chooses their vehicle. For the customer our competitive advantage is the time savings our system offers as well as $ savings due to our bid structure. They no longer have to spend countless hours searching through thousands of vehicles online on multiple sites trying to compare them to each other. We also have dealerships compete to ship the item to their doorstep.
Risks and challenges
There are many sites out there trying to assist in the car buying process.There are many good sites out there but none that truly benefit both the dealership and customer by saving them both time and money. Because their our so many sites out there with deep pockets our challenge is showing the public that we are THE site of the future to make their lives easier and save them time and money. We plan to overcome this with very strategic social media marketing. We also built our system with the utmost efficiency so our expenses are very low and we can withstand a build upstage if things do not go as planned.
Projects to complete with raised funds:
1)Dealertrack/Financing fully implemented into our system. (94% of current dealerships in the U.S. use Dealertrack) By implementing Dealertrack in our system we will attract more dealerships while giving the customer the ability to see live financing options and selecting what is best for them. 2)Build your car feature added to site 3) Pay pal added 4) Mobile application