It might seem like the used car business is a well-worn road, but in reality, GroovyCar was founded because the industry had yet to explore every direction. Alex Selden, GroovyCar’s Co-Founder and President, found himself questioning unaddressed inefficiencies in the used car market after 20 years of owning Selden Motors, a Philly-based used car dealership. There had to be another way.
Those questions eventually revved Alex up enough to create GroovyCar, an online, auction-style platform that makes selling your car for more money quick and easy. Our platform was designed to be a better experience for both sellers and dealers.
In this interview, Alex talks us through the inspiration behind GroovyCar, how it works, and why used car dealers and independent sellers should give it a go.
Q: What were the biggest challenges that inspired you to start GroovyCar?
“As a used car dealer, my biggest challenge has always been finding quality cars that I can sell to my customers at a fair price. I primarily source my inventory through wholesale auctions, which unfortunately tack on fees and shipping costs to the end retail price.
Meanwhile customers coming to my dealership with a trade-in are frequently shortchanged on the value they get, because I often need to turn around and sell these vehicles at auction. Each dealership has a niche set of cars that sell best on their lot, hence the reason many trade-ins go to auction.”
Q: What’s different about GroovyCar?
“With GroovyCar, we’re solving significant pain points for sellers and dealers by connecting the seller to local dealers who will compete for their car. The online consumer-to-dealer auction model drives up the value of the car, and eliminates the costs of wholesale auctions.
GroovyCar lets dealerships and car sellers cut out the middleman, interact directly, and ensure the car sellers are getting the best possible offer from competing dealers. In addition, it’s much easier for a car seller to enter their car information once and get bids from multiple parties with GroovyCar’s one-stop shop vs. sorting through offers from different car buying websites.”
Q: How does the process work?
“Our number one priority is providing a 5-star customer experience, so every step of our process was created with the customer in mind. Before putting their car up for auction, sellers can enter their VIN to get a GroovyCar Quick Estimate, which gives them an idea of how much money they could get and how it compares to trade-in value. The GroovyCar Quick Estimate is based on a proprietary algorithm that analyzes 1.5 million transactions per month to predict what dealers will pay for your car. Sellers who want to move forward with auctioning their car, can download the GroovyCar app or use our website to list their vehicle.
Putting your car up for auction takes just 10 minutes. Sellers answer a few questions about the car’s history and snap some photos. Dealerships then compete to win your car in a quick online auction. Once the auction ends, the seller and winning dealer arrange for the car to be dropped off or picked up, and the seller walks away with a check in hand. The whole process is risk and hassle free.”
Q: What’s the benefit to car sellers?
“GroovyCar benefits car sellers by getting them an average of $4,000 more than trade-in, with no additional effort required. In the past, sellers were faced with the dilemma of sacrificing their free time to get more money for their car, or forced to sacrifice more money for convenience. Now, they don’t have to choose, because with GroovyCar, they get both: a quick sale, and more money in their pockets.
In addition, we meticulously vet dealerships to make sure it’s an enjoyable ride for our sellers. We know we can’t grow if our partner dealerships don’t give our customers an amazing experience.”
Q: How does GroovyCar make money?
“It was important to us to make GroovyCar a free service for car sellers. Dealerships need your car, so you shouldn’t have to pay any fees to sell it. Therefore, we charge dealerships a monthly subscription fee for access to our auctions. Dealerships are already used to paying fees for wholesale auctions.
Our goal is to provide them an easier and more cost-effective way to obtain inventory for their clients. It’s a win-win for the dealerships and our car sellers.”
Q: What plans does GroovyCar have for the future?
“First and foremost, our plan is to focus on providing a superior customer experience. We don’t want to grow too fast and jeopardize the level of service our car sellers expect. Our short-term plans are to continue growing in the Greater Philadelphia market, onboarding more dealerships and helping more car sellers save time and money.
The ultimate goal is to raise funding and scale across the country, launching 25 metro areas in the next three years. Drop us a line if you’d like to see GroovyCar in a city near you!”