Spinny said it currently buys and sells around 15,000 cars a month and is working with new- and used-car dealerships as well as OEMs to strengthen its exchange proposition at the FADA Auto Retail Conclave.
“We do need a very strong exchange proposition. We need people to be able to set the best prices for their used cars, and that's where Spinny ecosystem comes in,” Gurveen Bedi, Senior Vice President, Spinny, said.
Spinny's Ecosystem Expands Beyond Buying and Selling Cars
Bedi said Spinny's ecosystem now extends beyond vehicle transactions following its acquisition of GoMechanic. “It actually continues further to when you want to get a car serviced as well,” she said. The company has also built in-house refurbishment centres and operates both retail and auction platforms. “We have the best-in-class price realisation because we run the retail as well as the auctions platform, which is very, very rare in this industry,” she added.
Exclusive Model Offers Dealerships Up to 3% Extra Value
A key focus is improving the profitability of used-car operations for dealerships. Spinny said dealers often underestimate costs related to manpower, inventory depreciation, refurbishment and operational leakages. “When you add all of those costs, then what you're left with at best, I would challenge a lot of dealerships to make this P&L and realise that actually what you've left with is 1-2% margins,” she said. Under its exclusive partnership model, it said it can offer dealerships up to 3% additional value on a car, potentially turning an otherwise marginal used-car operation profitable. “In one shot you've got a P&L which most likely today would be actually diluting money or diluting your profits [that] would immediately become profitable,” she said.
Spinny's OEM Partnerships Set to Expand Further
Spinny currently has partnerships with several OEMs, including Tata Motors, Nissan, Kia and Tesla, and said it expects to add more brands to its ecosystem through the new model.