Autoquake, an online used car retailer in the UK, has raised another £6 million round of venture capital and venture debt financing from existing investors Accel Partners and Highland Capital Partners. The debt is being provided by Kreos Capital. This is after raising £4m from Accel and Highland only last year. That takes its total funding so far to £20 million.
Autoquake’s plan is to disrupt the car retail industry by selling quality used cars on behalf of large corporate fleets and leasing companies direct to consumers via virtual showrooms. High quality pictures of the actual cars on sale appear instead of the usual fuzzy pictures on the average second hand advert.
It’s main draw is that the average 10% discount is higher than most traditional dealers and car supermarkets and since modern cars tend to last much longer, second hand values are higher.
Total sales in 2009 were expected to exceed 15,000 cars. They are pushing at an open door. According to Capgemini 44% of consumers in 2009 were are likely or very likely to purchase a car on the internet if that functionality is available. Competitors in the US include CarZen, CarWale, Auto-IES.
Last year it lured Dermot Halpin, formerly President of Expedia in Europe, to become new CEO, relacing Garry Hobson.