The ease with which Vroom is part of the Super Bowl hat.
Vroom
The whipping boy favorite of those who have long wanted to change the car industry is to criticize the consumer experience in car sales, where the problems with prices, rent claims and other complexities of bad taste for customers. When it came to used cars – double and triple the ideas of pain.
So Vroom had an easy target when the online startup builder of used cars took a creative approach to running his first Super Bowl ad in the first half of the Big Game on Sunday: used car dealers. The 30-second spot, of course, ended up as a love picture of the experience of buying a former vehicle, reflecting the literal pain of a non-stop buyer by an old-fashioned car dealer.
In contrast, as the business comes to an end, Vroom allows consumers to both sell and buy used cars with complete information clarity, painlessly, from the communication comfort of their own home, where they also enjoy seeing the Vroom delivery vehicle drop off the purchase without ever putting a foot in an infamous car dealer.
The advert was almost written himself, ”Vroom CEO Paul Hennessy told me. “Customers know what we’re talking about, and Vroom is giving you a great finish.” Vroom’s theme was “you will never go to a retail store again. We knew we needed a creative who would position Vroom and the customer as the heroes, and we knew that if we pushed away the rituals, everyone would understand the degree of difficulty there. We have had many customers say that they will never return to a retail store. “
In fact, Vroom has already become a company of about $ 1.5 billion in a business that Hennessy said no one knows about – a lack of awareness that Vroom has effectively addressed by adding its business model in front of around 100 million Super Bowl spectators on Sunday.
“The world doesn’t know that you can take a car straight to your house, with a huge selection, and that you can do it all through a dealer, through Vroom,” said Hennessy, a veteran. -a trader who joined Vroom in New York City in 2016. “And most of us don’t know someone who did this even with our online competitors.
Vroom has joined CarMax and Carvana ‘s main competitors in establishing a fully fledged platform for American consumers to sell a used vehicle and use another vehicle. Vroom went up $ 340 million in total revenue for the third quarter last year, the first as a public company, and now has annual sales around double the 2018 figure of $ 855 million.
Covid gave “tail tail,” Hennessy said. “Customers said, ‘I want to follow social distance rules and I don’t want to spend the day in a closed business,’ so they tested models like Vroom. We used to do well before, but now a lot more people are getting a lot of things. We believe it is a structural change that will see more and more customers start getting involved. ”
However, notes Hennessy, the three biggies in buying cars online together have only about 3 percent of America’s used car business through companies, and there are about 42,000 traditional auto dealers. holding the rest.
The country’s auto dealers have been anti-offensive against rioters like Vroom in attempts to hang on to their position in the vintage car market because a pandemic may drive more people out to outlets. In addition, of the 40 million cars used each year in the United States, about half are “peer-to-peer” transactions between individuals.
So there is a lot of runway for Vroom. And the best way to take his company and peers off, Hennessy believes, is to paint the heaviest possible distinction between their model and the sale of traditional cars. That’s why the Super Bowl ad featured a man tied to a seat and sadly questioned by a car salesman. Then the script returns and the boy is still in a chair – but now sitting in his front yard next to his wife as Vroom’s truck pulls up with his new car.
Vroom offers consumers an alternative both in the showroom and the network of peer-to-peer sales. “Consumers take their car into a retail store and get a low ball offer and say,‘ I know I can make more money on this myself, ’” Hennessy said. “They don’t want to accept the low offer, so they will do their best at eBay Motors, or on Craigslist, or with a cardboard sign on their driveway. But it’s horrible.
“With Vroom they can go to the website, give us a license plate or a VIN number and just answer a question or two, and we put a definite offer on the car there, a sight never seen before. The buyer says, ‘Yes,’ and we issue funding and a truck ”to remove a contract that can fraudulently disrupt the messenger activity. “The added value for consumers is huge.”
And when it comes to buying a used car, Vroom has an online record of about 16,000 vehicles “while the average dealer has 100 cars on the lottery, and perhaps a bigger one 200. So buyers have to go from lottery to lot trying to find the car that suits them well – or just pull out our app. “