Online-Only Used-Car Dealership a Hit in Australia

An Australian online startup is discovering a rich lineup of customers ready to totally bypass car dealerships.

HelloCars, claiming to be Australia’s first online-only car retailer, says it rang up more than A$12 million ($9.53 million) in transactions during its first 12 months in business.

The used-car dealership co-founded by brothers Paul and Michael Higgins says it offers better value for customers by removing the overhead that raises the cost of buying or selling a used car.

Paul Higgins says much of the growth has been driven by word of mouth. “Many of our customers find the HelloCars process refreshingly simple and go on to tell their friends,” he says in a statement.

HelloCars estimates in its first year it paid its customers more than A$737,000 ($585,023) for their vehicles above what they would have been paid by a regular car dealer, or about A$2,730 ($2,166) more for each seller on average.

Paul Higgins says by operating without a public dealership showroom and focusing instead on delivering an effortless online experience, HelloCars can maintain much narrower margins than traditional dealers – meaning more money in the pocket for both buyers and sellers.

“Buying or selling a car online should be as simple as ordering a new dress or pair of shoes,” he says.

HelloCars offers a seven-day guarantee. During that time, buyers can return the vehicle for a full refund. “It’s what buying a car should have always been,” Paul Higgins says.