By looking at the last two years I can conclude that iBuying Here doesn’t really have what it takes to survive the onslaught of online retailers.
iBuying Here has been around since 2003 and claims it offers the cheapest car sale process in China. And you can certainly compare their site against the biggest players like Carsdirect and Unimog, who have much bigger numbers of cars.
The 3 founders of iBuying Here began as price comparison sites in China, iChina.com and eChina.com. In an effort to branch out beyond price comparison, they set up iBuying Here to create what they call a “smart car deal” service.
The 3 founders have an impressive list of clients they have sold vehicles to, including some of the biggest names in the car industry including Nissan, Toyota, Maserati, BMW, Audi, Land Rover, Bentley, Jaguar, Aston Martin, Volkswagen, Lotus, Nissan, Jaguar Land Rover, and Lexus, among others. So they must have sales power.
But their 30,000 daily page views don’t explain why they charge buyers 49 percent commission and a whopping 200 percent listing fee.
I am currently trying to search for a 2008 Kia Soul, and the site’s review system is not that convincing. The 7% rate for their third party agents not even includes a fee for creating an initial profile and a listing in China. As a comparative user, I am merely interested in getting a pre-sale price in China, but all iBuying Here is offering me is limited services on their website. Instead of seeing a list of deals at IBC ($99), in the United States I see other IBCs listing a $199.15 average price per car.
So maybe they do have power, and a huge database of Kia deals, but the process has to become more user friendly and the commission rates just have to get down to the US levels.
In September 2008 the founders sold 30,000 Kia Soul vehicles at an average rate of $1,493 per car. Was this a great deal for Kia and their dealerships or was this a bit above their given commission rate?
Click here to see all of our discussions on iBuying.