The lack of quality in used and pre-owned cars is currently the main complaint from consumers in this sector. A survey by the Reclame Aqui portal shows that the most criticized items by buyers of pre-owned cars at dealerships are: defective vehicles, delivery delays, and poor customer service—problems that have been addressed by vehicle startups, such as Carflix. 

There is a growing emergence of startups in the automotive sector, or autotechs.

They have revolutionized and innovated the pre-owned car market, as they offer services that seek to solve common problems caused by the pre-owned and used car market itself. 

Carflix is another example of these startups. It connects buyers to pre-selected used car dealers through an online platform.

The result of all this action is a fair and honest deal where everyone wins!

The used car market is large.

Just for the sake of curiosity, in 2019, one of the best years in the country, more than 14 million pre-owned and used vehicles were sold in Brazil. 

However, while it is a large market, the sector is very fragmented.

Because direct sales between sellers and consumers are not a priority, this results in poorly executed deals and consequently, a loss of money. 

Before creating the startup, entrepreneurs Alan Ladeia and Fábio Pinto worked in sales and operations, respectively, at a dealership network. 

According to the two founders, Carflix arose from the problems that emerged from selling a used car.

Because there is a lack of information symmetry between the dealership and the vehicle owner, and between the vehicle owner and the final buyer. 

Year of manufacture, mileage, and overall condition of the vehicle directly influence the sale price, without many owners understanding how it was determined. 

Typically, owners lose between 20% and 30% of the car's value in the transaction with the dealership, say Alan and Fábio. 

In the case of online ads, buyers don't know if the vehicle has been repaired before, and both sides fear unsafe encounters or fraud, whether in the documents or payments. 

Carflix was created in early 2018 to minimize the problems faced by those who buy or sell cars. 

The company grew by 530% in terms of revenue throughout 2019, which is exponential!

In the second half of 2019 alone, the startup sold 500 cars. In 2020, due to the crisis, the same performance was not achieved. 

The company expects that in the second half of this year, with the economic reopening, there will be a gradual recovery of what was lost last year. 

The demand for pre-owned and used cars is now much greater than the demand for brand new vehicles.

This is due to the high prices charged. 

Carflix's positive outlook stems from an investment of R$ 15 million during the pandemic. 

During an investment round led by BV bank, the startup was chosen because it was considered a great fit for the country's economy. 

The new investment should facilitate the company's recovery process, which plans to soon launch car inspection software.

This software will allow us to scale the business model even further. 

With this new software, the customer would only need to take photos of the car, and all inspections and analyses would be done remotely using artificial intelligence. 

Carflix's operating model is very similar to other startups that operate in the vehicle buying and selling sector.

Other options that work in a similar way are Kavak and from InstaCarro, for example. 

The vehicle owner goes to the startup's website, registers the car, and reserves a day to have the inspection done.

This inspection can be done at home or at one of the startup's three inspection centers in Greater São Paulo. 

The car then undergoes a document check that covers everything from financial aspects to accident history.

In addition, a physical inspection is carried out with more than 150 items evaluated.  

If the vehicle is approved for sale, the company takes photos and uploads ads to various online marketplaces for buying and selling used and pre-owned cars. 

Through artificial intelligence and algorithms, the startup filters buyers, offers financing in partnership with banks, and performs a second check at the time of sale, in addition to managing the transfer of ownership of the payment flow. 

Currently, Carflix charges a commission of 6% from the sale price, only when the car is actually sold. 

If the sale falls through, the vehicle owner pays nothing. 

This commission includes the costs invested in advertising the vehicle on major buying and selling websites, the contract between the parties, an escrow account to secure the financial flow, and a 1-year warranty covering parts and labor related to transmission and engine repairs. 

Carflix Turbo is a sales method that differs from the traditional one used to sell most vehicles.

In this model, the vehicle is offered to a network of accredited partners. It's a faster sale, as the name suggests. 

If the car owner accepts the offer, they just need to schedule an inspection at one of the company's showrooms. 

If the vehicle passes inspection, the sale is finalized immediately and the owner receives the money within 24 hours. 

Today, the startup accepts cars from the 2005 model year onwards, and vehicles between 2005 and 2009, or with mileage exceeding 180,000 kilometers, will be sold under the Carflix Turbo program. 

Cars that have been through auctions, have judicial, tax, or administrative restrictions, or have been reported stolen are not accepted for sales by the startup. 

Furthermore, the company reserves the right not to accept certain brands and models, at its discretion, and will not disclose or discuss acceptance criteria. 

The selling price of the vehicles is decided jointly with Carflix.

Except in the turbocharged version, where the price range is predetermined and may vary depending on the vehicle's conditions, model, and accessories. 

The startup's database contains information on numerous vehicles across Brazil.

This ensures the fairest possible selling price for both the buyer and the seller. 

The company believes that a healthy sale is one made for the right price and within the right timeframe. 

According to the founders:

"There's no point in advertising a car online at an unrealistic price if you can't sell it for a long time. It doesn't work for anyone."

A major advantage for those looking to sell their vehicle with Carflix is being able to continue driving the car. Until a buyer is found, there's no need to leave the vehicle parked, as happens in dealerships and parking lots. 

Only when a genuinely interested buyer is found does the sales team contact the seller so that the buyer can view the vehicle in person at the nearest startup location. 

This visit is scheduled, and the car can be taken directly by the seller, or the company can pick it up by tow truck, whichever is easiest at the time. 

Once the sale is finalized, the vehicle must then be delivered to the startup to ensure nothing happens to it. 

But this is not something any seller needs to worry about, as there will be a consignment contract, guaranteeing that the vehicle will only be delivered after payment confirmation. 

After learning about the company and how it operates, you're probably wondering what the step-by-step process is for buying and selling a car with them. Carflix?

You can find the answer by clicking the button below!

—-