Vehiko

Vehiko
We haggle, so you don't have to!
Startup/business
Darien, Connecticut, United States United States
http://www.vehiko.com
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Company description

Vehiko.com is dedicated to ensuring buyers the lowest possible price on a new car while providing dealers with guaranteed sale in an easy-to-use and efficient web-based reverse auction platform.


Business model

Buying a vehicle is not a pleasurable process for most people.  The pride in and love of new car ownership can be overshadowed by the terrifying and high-pressure experience of haggling over a price with a salesman at a dealership.  Currently, consumers have two options for researching vehicles:  either driving around to different dealer lots or perusing the Internet.  Both options are incredibly time-consuming and, in the end, may not yield the desired outcome.  People who are in the market for a new vehicle often have a make and model in mind, and certainly have some idea of an ideal color and specific features they’d like to see.  If only there was a way for dealers to face one another in an online auction environment to give customers the best deal possible on their dream vehicle… 

 

Enter Vehiko.com.

 

Vehiko.com simplifies the car-buying experience for consumers, and provides a streamlined reverse auction atmosphere to connect buyers with the dealers who carry the make and model of vehicle that the consumer wants to purchase.  Consumers pay a nominal fee to use the site, and dealers access the site and browse for bidding opportunities free of charge.  Dealers “bid” on the cars being requested by the site’s users in real time.  An example might be a 2012 Toyota 4Runner SR5 in Salsa Red with a moon roof, in-dash navigation, and 4-wheel drive.  Dealers near (within the buyer’s zip code) and far bid over/at/under Manufacturer’s Suggested Retail Price (MSRP) for the vehicle, and must ensure that the bid is valid for seven (7) days after the close of the consumer’s auction.  Consumers remain anonymous throughout the process until a bid is accepted, and the onus falls on the dealer to carry out their end of the deal – not the consumer.  In fact, the consumer is not at all obligated to move forward with any bid.  This removes the stress from the buying experience for the consumer while placing dealers in a healthy competition that results in better deals for the customer and a more engaging and rewarding process for dealers than simply following up on a typical lukewarm Internet lead.  Ultimately, Vehiko.com offers a win-win solution for every party involved.  No commission is exchanged between the dealers and Vehiko.com, with revenues occurring from the user fees alone, however, as the Company continues to grow, it will pursue the possibility of charging a monthly recurring fee to participating dealers. 

Competitive advantage

The Company will experience competition from other lead aggregators and sites that connect dealers with buyers, most of which lack the specific consumer data and the reverse auction elements that Vehiko.com can provide.  The Company will capitalize on its competitors’ weaknesses by building on several strengths:

 

  • Easy to use website
  • Reverse auction technology
  • Guaranteed leads for dealers
  • Consumer data
  • Provides a more efficient system that allows consumers to remain their anonymity and bargaining power while gaining price information
  • Reduces the inefficiency and cost associated with the current lead system for dealers
  • Customers, not dealers, pay for the bidding process

Ability to expand to incorporate additional services