Cars24 Business Model | How Cars24 Make Money

The world of used cars, which is full of doubt and mistrust, has been waiting a long time for a game-changer. The game-changing factor was the arrival of Cars24, a pioneering eCommerce platform that revolutionized the used automobile market. Join us as we dive into a comprehensive analysis of the business model of Cars24 that has revolutionized the used car market and propelled the company to unprecedented heights of success. Cars24 has come a long way from its start to become a major participant in the secondary market for used vehicles. However, why is the company's business plan so effective? How do they cope with the complexities of the pre-owned vehicle industry to provide their clients with fair and high-quality deals? To address these inquiries, we will examine the business model of Cars24 through this write-up.

About Cars24
Cars24 Business Model
How does Cars24 Make Money?
USP of Cars24
Cars24 SWOT Analysis

About Cars24

Vikram Chopra, Mehul Agrawal, Gajendra Jangid, and Ruchit Agarwal, launched Cars24 in 2015 to simplify the at times complicated process of buying and selling secondhand cars. After enduring the complex web of the used car market on their own, the founders saw the need for a platform that could simplify, streamline, and increase trust in the industry. The concept of Cars24 was therefore formed. Having its headquarters in Gurugram, the company conducts business throughout India.

Cars24 Business Model

Partnerships and commissions charged by the company when purchasing and selling used automobiles are the backbone of the Cars24 business model. Car dealerships, banks, NBFCs, and inspection and refurbishment centers are all part of their collaborations. If Cars24 wants to keep its inventory up-to-date, offer financing alternatives, and sell only high-quality vehicles, it needs these alliances. The technological infrastructure, the network of partners and car dealerships, and the skilled team of mechanics and automobile engineers are the most important resources for Cars24. Their tech infrastructure allows them to scale and run smoothly, their dealership network guarantees a steady supply of automobiles, and their talented workforce guarantees that the cars on their platform are of high quality. There are a lot of benefits to using Cars24. It provides a simple and fast way for sellers to sell their cars, as well as fast payment and a free vehicle examination. Easy financing choices, a five-day return period, and a large selection of certified and tested cars are what purchasers can expect from this service.

CARS24 Success Story - Founders, Business Model, Revenue Model and More

Cars24 is an online used car marketplace founded in . Know more about founders, funding, investors, growth, business model and revenue model, challenges, competitors and more.

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How does Cars24 Make Money?

Cars24 operates on the asset-heavy customers-to-business (C2B) model, which entails purchasing pre-owned vehicles from private parties and dealers and then reselling them to other parties.

Although the exact fees are not made public, it has been reported in the media that Cars24, in contrast to classifieds platforms that rely on listings, facilitates the entire transaction, charging a small registration fee in addition to a commission of 4-5% on each sale. The company began operations in 2015 and has already sold fewer than 1,000,000 vehicles. Their tech infrastructure allows them to scale and run smoothly, their dealership network guarantees a steady supply of automobiles, and their talented workforce guarantees that the cars on their platform are of high quality. The C2B concept is intentionally incorporated into the platform's design. Cars are bought by the company and then sold to dealerships. The C2C business model is now part of the company's expansion.

Under this approach, before a user buys a car, they have to either choose it from the platform's website or go to the closest branch to test drive it.

USP of Cars24

The scarcity of secondhand cars is a problem that Cars24 is working hard to solve. Cars24 streamlines the whole buying process, in contrast to its competitors which only generate leads. It enhances the customer experience by investing in stronger technologies. The company promises the lowest rates, the quickest deals, and the most knowledgeable staff.

Cars24 SWOT Analysis

Cars24 Strengths

• Cars24 offers online services for purchasing and selling used automobiles.
• The company is highly adaptable in the ever-changing market.
• Online enterprises, such as Cars24, have thrived during the pandemic era due to their ability to continue growing without interruption.
• Cars24 maintains profitability and client connections through its online presence, ensuring a strong position when the economy recovers.
• The service delivery process is streamlined for customer convenience.
• Customers can have the perfect vehicle delivered to their door in minutes without leaving their sofa.
• Budget considerations are crucial for customers when buying an automobile.
• Cars24 provides a fully digital solution to avoid complicated transparency procedures.
• Low-interest monthly payment options are available, allowing clients to purchase cars even without immediate cash on hand.

Cars24 Weakness

• Cars24's car valuation and pricing methods often make buyers uneasy.
• The pricing frequently falls short of customer expectations.
• During the off-season, Cars24 experiences idle periods, and profitability is inadequate during these periods.

Cars24 Opportunities

• Increasing numbers of people are planning to purchase used automobiles.
• Numerous factors contribute to this trend, including:Avoidance of paying taxesCost savingsAccess to higher-quality used cars
• Research indicates a global preference for second-hand vehicles.
• 67% of second-hand vehicle purchases occur at second-hand stores.
• Environmental regulations in certain nations may require the abandonment of vehicles in excellent condition.
• Car resale segments present a great business opportunity to capitalize on this trend.

Cars24 Threats

• The used car market holds significant potential. Many people have recently recognized the promise of this ecosystem.
• Technological advancements enable new entrants to quickly join the competition.
• A major obstacle for customers considering a used car purchase from Cars24 is the lack of assurance regarding the vehicle's condition.
• This lack of assurance poses a massive threat to Cars24's future business.

Conclusion

When it comes to buying and selling used cars in India, Cars24 has revolutionized the industry. They have achieved great success thanks to their forward-thinking leadership, innovative use of technology, and outstanding understanding of client needs. Cars24 has changed the way people purchase and sell used automobiles by making the process easy, transparent, and efficient. Car trading is now as easy as ordering food or a cab online since they have removed all the old hurdles.

FAQs

What is Car24?

Founded in 2015, Cars24 is a leading AutoTech company that is revolutionizing the sale, purchase, and financing of pre-owned cars in India, Australia, Thailand, and the UAE.

Who are the founders of Cars24?

Vikram Chopra, Mehul Agrawal, Gajendra Jangid, and Ruchit Agarwal, founded Cars24 in the year 2015.

Is Cars24 a unicorn company?

Cars24 raised US$200 million in a Series E round of funding in 2020 and became a unicorn startup as it was valued at over $1 billion.