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Used Car Buyers Now Experiencing Same High-Quality Purchasing Experience as New Car Buyers: Insights from Spinny CEO

 Used Car Buyers Now Experiencing Same High-Quality Purchasing Experience as New Car Buyers: Insights from Spinny CEO

Used Car Buyers Now Experiencing Same High-Quality Purchasing Experience as New Car Buyers: Insights from Spinny CEO

According to Niraj Singh, CEO and founder of Spinny, the used car buying space has been on an upward spiral year-on-year, experiencing a 14-15% growth, especially after the pandemic. Two main factors driving this growth are the increasing prices of new cars and the growing demand for personal mobility, where cars are about more than just transportation but an extension of safety and well-being for the family. 

In a conversation with Autocar India, Singh emphasized that the company owns its own inventory, giving them greater control over its product quality, transparency, and accountability. Spinny uses a full-stack model where they buy vehicles from sellers, manage their inventory, and sell directly to the end customer, thereby owning the entire value chain. 

This approach ensures they can control the quality and take accountability for what they deliver to their customers. Spinny is trying to create a niche in the used car buying space by offering customers the convenience of walking in and purchasing from the expansive line-up of cars on display, creating a new car showroom-like experience. 

Singh explained that if they're buying a car, it's a very aspirational and special purchase for anyone. Spinny built its platform for people to buy second-hand cars with the same confidence they would have purchased a new car. At the same time, the end-to-end buying experience can be far better. 

Singh also highlighted the fact that there exists a huge gap between demand and supply. Sourcing a seller becomes more difficult than getting a buyer as the sellers are always looking to maximize the price they will get and will, therefore, look at multiple prospective buyers. On the demand side, it's not just about getting the best possible deal but also the right car, which means customers will also look into factors such as quality, safety, and accountability. The company is trying to cater to sellers by providing competitive pricing, speed, and convenience. Because of their model, they can offer competitive pricing, and in their system, everything is a doorstep service, making it convenient for the seller. 

For a seller, one needs to submit a few basic details of the car on Spinny's online platform, after which they will be given a ballpark figure. If the seller is comfortable with that range, Spinny will inspect the car on the same day at the seller's doorstep. A final quote will follow this; if accepted, Spinny will pay and collect the car then and there.

Spinny currently operates in 15 cities, and in the short term, the company is looking to go deeper into its existing markets rather than adding new markets. 

The company started with four cities – Delhi NCR, Bengaluru, Hyderabad, and Pune – and in each of these four cities, it currently has a market share of 5-10 percent. Four more cities were added in 2021 – Mumbai, Chennai, Ahmedabad, and Kolkata – where they are currently operating with about 3.5-4 percent market share. 

The company also expanded to seven smaller cities in 2022. Spinny's expansion plan is to strengthen its position in these cities before venturing into new ones. Spinny's differentiated approach in the used car space has been well received by customers, resulting in a positive impact on the business. As the demand for personal mobility continues to grow, Spinny's full-stack model and focus on creating a new car showroom-like experience can provide a better buying experience for customers.