CarDay Launches An Internet Auction For Used Cars With $25 Million in Funding
1 May 2000
CarDay Launches An Internet Auction For Used Cars With $25 Million in Funding
BOSTON--May 1, 2000--6,000-Mile Warranty
Local CarDay Auto Experts Assist
Used-Car Buyers and Sellers Every Step of the Sale
CarDay, the first-of-its-kind online auction site for used cars, launched today in Boston, Hartford and Providence, marking a new era in hassle-free used car buying and selling for consumers in New England. By leveraging the strengths of the Internet with the guidance and expertise of local automotive retailers, CarDay offers consumers a powerful new way to buy or sell pre-owned vehicles.
Available now New England with warranties and protections from 36 franchised dealerships, CarDay will have a national presence by early 2001.
The $750 billion used-car industry is three times as large as the new-car industry, and with the growth of the Internet, experts predict more people will buy and sell cars online. Yet the prospect of dealing with strangers and not knowing exactly what's under the hood has historically been risky business for used-car buyers. And used-car sellers have not been able to achieve full value on their vehicle because they don't offer warranties or financing.
CarDay solves these problems by providing consumers with industry-leading warranties, certifications, safeguards and protections. Dedicated CarDay AutoExperts - automotive professionals at local franchised dealerships - manage the entire transaction, from inspecting and cataloging vehicles to monitoring online auctions to assisting with financing and paperwork. Used-car buyers and sellers never have to meet each other, thus eliminating the typical stress and liabilities common in private transactions for large-ticket items.
Every vehicle listed on CarDay.com is required to pass a 110-point certification and is backed by a minimum six-month/6,000-mile power-train warranty. As a result, consumers receive more value, product information, liability protection and peace of mind.
"With CarDay's ability to offer financing and warranties, sellers can obtain a higher price for their car by giving the buyer greater protection," says Joe Shaker, co-founder and CEO of CarDay, who is also a third-generation auto retailer with 14 dealerships in New England. "Likewise, used car buyers no longer have to contend with risk and hassles. CarDay is a trusted intermediary that backs each certified vehicle with a warranty, and lets buyers and sellers have the final word."
CarDay's used car buyers can choose from a wide selection of certified, warranteed vehicles from the comfort of their home computers. In addition, CarDay arms buyers with inspection reports, digital photos, CarFax reports and a dents and scratches diagram, as well as candid comments by the CarDay AutoExpert who has studied and test-driven the car.
CarDay has $25 million in funding from Goldman Sachs, Odeon Capital Partners, Citigroup Investments and Sierra Ventures. It will blanket New England with an $8 million advertising campaign over the next several months.
About CarDay(TM)
Headquartered in New York City, CarDay(TM) (www.carday.com) is the first "brick and click" auction site for used cars that incorporates a network of franchised automotive retailers. CarDay connects buyers and sellers in an online marketplace and provides them with vehicle certifications and warranties. The CarDay auction provides a marketplace for the sale of mechanically certified vehicles owned by private sellers, institutional sellers and participating CarDay-franchised dealerships. CarDay offers an ever-changing selection of used cars. Each vehicle sold in a CarDay auction is 100 percent mechanically certified and warranteed. CarDay's network of local Certification Centers staffed by CarDay AutoExperts launched in New England in the spring of 2000, will expand along the East Coast, and will be nationwide by mid-2001. The CarDay venture began with $25 million in initial funding. The venture was incubated at Hometown Auto Retailers (NASDAQ: HCAR), which backs CarDay along with Goldman Sachs, Odeon Capital Partners, Citigroup Investments and Sierra Ventures.