Donny Corridor, the chief govt and co-founder of the used automotive certification service, SureSale, is aware of used vehicles. The serial entrepreneur constructed and bought a earlier enterprise, CarSure, which was an insurance coverage plan for automobile repairs.
After promoting that enterprise in 2017 to Revolutionary Aftermarket Techniques, Corridor determined that his subsequent enterprise can be to tackle the used automotive business’s dominant supply for historic details about a automobile — Carfax .
His Santa Monica, Calif.-based SureSale has raised $7 million in financing from the LA-based funding agency Upfront Ventures to create a nationwide used automotive certification service that sellers and automotive buyers across the nation can flip to for an unbiased evaluation of a automobile and its issues, in response to Corridor.
“66 p.c of client need to purchase vehicles which might be licensed and solely 7 p.c do,” says Corridor. “Independents don’t have any nationwide [certification] program and sellers don’t have nationwide packages.”
The corporate integrates background checks, insurance coverage, and offers a restricted guarantee and five-day trade choices for automobiles assessed via its program.
To launch the enterprise, Corridor partnered with Jeffrey Schwartz, the co-founder of the used automotive market and assessment platform, Autobytel.
Used automotive dealerships are hurting within the ecommerce age similar to different conventional retailers. SureSale is betting that its value-added companies and higher reporting requirements can provide sellers a aggressive benefits versus on-line companies like Carmax.
Dealerships pay for the service, however in return their clients get a full inspection, a title and a background test alongside the 5 month guarantee.
“Though there have been quite a lot of latest startups which have seen huge exits on this class like Carvana ($13BN market cap) and Carmax ($16BN market cap), given that every firm has lower than 2% market share, any market this massive is all the time ripe for continued effectivity good points,” wrote UpFront Ventures accomplice and SureSale director, Kobie Fuller, in a weblog publish.