HelloCars, is a low-cost, online-only used car dealership, so far to date it has made more than $8 million worth of sales since launching in September 2016.
Unlike traditional dealerships, HelloCars buys cars for an upfront price, which the company says typically works out to about $2,730 more for the seller. By cutting out the expensive overheads of a bricks-and-mortar dealer, HelloCars is able to take a much lower margin and still turn a profit.
Dealers here typically take around 20% for their margin, Hellocars margins are reported to be between 4 - 9 %, depending on the value of your car. They also offer you a fair price, at the moment they guarantee that this will be at least $1000 more than a traditional dealer.
If a customer wants to sell their car, they go to the HelloCars website, obtain an automatic quote upfront. If they’re happy, they then book an inspector to come out and give the vehicle a 230-point inspection — if it passes, HelloCars picks up the car and does all the paperwork.
Note however that they only deal in cars that are under six years old and fewer than 100,000km.
HelloCars offers a seven-day money back guarantee on cars purchased. The return rate appears to be about 3%, but half of those customers typically bought another car.
Customers have reported that the process as “easy”, "not requiring much time", "low stress".