CarWoo! Nabs $6M to Accelerate Car-Buying Site
In a completely online experience, auto-buying startup CarWoo! aims to help consumers purchase vehicles in a “stress-free” environment. From beginning to end, the process is completed in cyber space — all the shopper needs to do after the process is schedule a pickup. This week, the California-based company announced the closing of a $6 million funding round, bringing its total funding to more than $12 million. The additional funds come from InterWest Partners, Comcast Ventures, Blumberg Capital, Raymond Tonsing, and other investors. Previous funding was achieved through Y Combinator.
Having more than quadrupled its dealer network in the past year to more than 11,000 dealers, CarWoo! intends to use this round of funding to continue that level of growth with consumers, launch new products, further develop the management team, and cultivate strategic partnerships, the company said in a release.
With the funding, CarWoo! intends to hire Rudi Thun as chief operating officer. Thun has previously worked as general manager of AOL Autos. Phil Yeh also joins the startup team from Deali as vice president of marketing.
When checking out the site, the company touts its ability to provide stress-free negotiating for its consumers:
With CarWoo! you can negotiate with as many dealers as you want from the comfort of your own computer at your own pace. No more hot seat. No more hassling.
The site also recognizes the time saved when consumers can choose, negotiate, and set up pricing all from their computer:
Don’t waste time driving around to multiple dealerships to get a price. With CarWoo! you can call, email, and negotiate with dealers all online.
The site also allows its shoppers to remain anonymous throughout negotiations. So how does it work? The shopper chooses a car he’s interested in, specifying make, model, style, and color. Next, local dealers chime in and give the consumer offers on the selected vehicle. Then, negotiations begin with dealers in the geographical area the customer has noted. Finally, a consumer may accept and offer and schedule a pickup.
According to the site, prospective shoppers can sign up for a basic membership for $49, which allows a search for one car, with four or more offers from dealers. The Plus membership charges a one-time fee of $99 and allows offers from four or more dealers, the ability to search for as many as three cars, a price estimator, side-by-side comparisons, and ultimately the opportunity to obtain all the information needed to purchase or lease the vehicle before heading to the dealership.
Is the cost worth the “Happiness Guarantee” that the site promises? Or is the old-school way of purchasing going to remain strong and more popular?
