Abracar, the first spin-off of the high profile alliance X incubator provides better appraisal and mediation of potential car buyers.
According to the company, 84.6 billion euros was spent on used cars last year making this a lucrative market where more and more online car dealers and brokers are doing business. Some examples, include: Mobile.de, wirkaufendeinauto.de and Cargentur, a spin-off of the insurer Allianz.
“We do not buy vehicles, but our customers commission us to create an opinion and find potential buyers,” says Ohran Köroglu (one of the founders) in relation to NGIN Mobility.
Abracar takes care of the complete marketing: from the photos, to the advertisements to the buyer mediation.
“We are basically a car maker,” says the founder.
Contrary to other commission based business models, Abracar does not earn money until the car is actually sold–a 4% percent commission is charged to the seller in the event of a successful sale. There are minimum and maximum charges of 399 and 999 euros, according to the company.
Nevertheless, Köroglu does not want to be compared with Wekaufendeinauto.de.
“We offer different solutions for private sellers and have different business models,” says the founder.
Most online car sellers want an immediate sale, whereas at Abracar, the sale can take three to six weeks. If you want to have more for your car, you have to invest more time.
This is how the service of Abracar works.
In order to be able to offer used vehicles via Abracar, a few details about the vehicle and a price presentation have to be given to the portal. Abracar then makes an adjustment with the desired sum and, in case of doubt, corrects the price upwards or downwards.
In order to make the exact condition of the vehicle transparent and also for the vehicle photos, Abracar then sends experts to the customer and 50 to 100 photos are produced per vehicle, according to the company.
“We work together with the TÜV, independent experts and experts in order to be able to offer a service that is as serious as possible,” Köroglu explains.
In the next step, the Munich Startup will create listings, including advertisements on mobile.de. The latter platform is understood by the founder as an important partner, not as a competition. After all, the potential buyers are searched for the Abracar customers.
Abracar was developed in 2016 as part of the Accelerator program of Allianz X and is the first prototype of the incubator. The Allianz-X fund has 430 million euros available for spin-offs. The team around founder Sebastian Jost and Orhan Köroglu is based in Munich and has been active with its service platform for seven months.