Name: CarWooQuick Pitch: CarWoo is the easiest way to get a great deal on a new car without having to haggle directly with a car dealer.
Genius Idea: The Internet can be a great resource for researching your next automobile purchase. Oftentimes, however, requesting dealer quotes online can turn into a laborious nightmare that ends with a handful of salespeople calling you repeatedly to convince you to visit their dealership.
Recently launched Y Combinator startup CarWoo believes it can eliminate this hassle altogether with its car buyer-friendly approach to car shopping.
On CarWoo, you can select the make and model of the car you’re looking to buy. That information is then anonymously shared — meaning dealers cannot contact you directly unsolicited — with dealers in your area who then publicly compete to make the best offer for your business. You can then compare and contrast offers, negotiate with counter offers and ultimately use CarWoo to lock in the best offer.
The startup purports to have 3,000 dealers covering all makes and models (for new cars) in all U.S. states. CarWoo dealers agree not to haggle over the price at the time of sale, which ideally makes for an improved and expedited experience.
One caveat to CarWoo is that it comes with a price tag. Serious car buyers will need to pay $39 for the privilege of having two to three dealers compete for their business, or $79 for three to 15 offers.
Given the one-time customer nature of the startup, CarWoo’s success is greatly dependent on creating a must-share experience for service users. CarWoo also promises satisfaction and is said to refund fees to unsatisfied customers, a plus for shoppers but a potential negative for the business as we envision buyer’s remorse to be exacerbated by the online nature of the service.
The idea seems to really resonate with industry heavy hitters. CarWoo has raised upward of $6 million in funding from a rock star list of angel investors and VC firms including Paul Buchheit (father of Gmail), Sam Altman (Loopt), The Founders Fund, Blumberg Capital and Interwest Partners.
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