Mojo Motors is a used car vehicle sales aggregator website that offers a new way to buy used cars: guaranteed pricing at a discount available only through a free membership.
When it comes to vehicle sales, it is much more profitable to sell used cars. That explains the proliferation of used car vehicle sales sites. Especially popular are those that aggregate offerings from several used car dealers in a set geographical area like Mojo Motors does.
Mojo Motors is in its infancy and focusing on New England as it launches. As explained on its website, "Through exclusive relationships with local dealers, Mojo Motors is able to offer special discounts on the very same cars you'll find on AutoTrader and cars.com. In fact the only cars we list are those with exclusive Mojo-only discounts. That's how we guarantee that the prices you see on Mojo are the best for that car."
As Mojo Motors points out, the guaranteed price from a dealer does not have to be the final price. The dealer can't go higher but you can always try to go lower. Take a moment to read my article on Ten Questions To Ask a Dealer for some tips before going in. Question 7 is going to come in especially handy.
Honestly, after spending some time researching this site and how it works, it is a strong contender when it comes time to replace my wife's car within the next 18 months. It takes online used car buying to a level of comfort and finality that seem to be missing from other sites.
Dan Harman, Director of Demand Programs at Mojo Motors, agreed to answer some questions about the website so consumers could gain a better understanding of how it works and, more importantly, how the company can prosper. After all, there are lots of great ideas out there for used car buying websites but it takes more than a great idea to sustain a business.
Q. Mojo Motors is a fairly new entry into the used car marketplace. Explain what the site is and what it is hoping to accomplish.
A. Mojo Motors is a used car listing site that features an exclusive discount on every vehicle. We want to bring a level of transparency to used car pricing that hasn't existed.
Q. Before we go further, where did the name come from?
A. Buying a used car can be such a painful experience. We wanted to pick a fun name because our goal is to make buying a used car easier while ensuring you get a good deal. When you're armed with an up-front discount price, you can walk into the dealer with Mojo and walk out with a great deal. (It also sounds cool!)
Q. Does the consumer end up dealing directly with the dealer when it comes time to complete the transaction? Does Mojo Motors offer consumers a guaranteed price?
A. The consumer does deal with dealer directly once they've found a car they're interested in. It's up to the consumer to contact the dealer either through our site or by walking in. The Mojo price will be honored by all of our dealers as long as you have the Mojo voucher with you. In most cases, the Mojo price is already significantly discounted, but the customer is free to negotiate further if they like.
Q. What happens if the dealer decides not to honor the price?
A. Mojo has a contracted relationship with every dealer on our site. Should a dealer decide not to honor the contract, we would be forced to remove them from our site and would do our best to help the customer get the best deal possible.
Q. The dealer pays you a success fee and offers you discounted pricing on used cars. What's the advantage to the dealer? Why not use their own website to sell their used cars and make more money?
A. Mojo offers visibility and selection that a dealer website just can't get. Vehicles that sell through Mojo are the ones that are priced the best because our site doesn't have any "featured vehicles" or ads. As a result, by the time a Mojo customer visits a dealer, the customer already knows what a good deal is and doesn't need to shop around. It's an efficient deal for both parties. That's why dealers who price well and deal fairly win on Mojo.
Q. Why do you only focus on dealers and not private sales? Does that limit your market?
A. Real-time information is critical for consumers. One of the most common questions is "Is the car still available for sale?" Mojo is directly integrated with our dealer's electronic inventory systems - as a result our listings are updated anytime a dealer sells a vehicle or changes the price. This kind of functionality isn't possible for private sales. Furthermore, dealer sales represent two-thirds of the used car market. So while Mojo can't serve every used car sale, we can serve a majority.
Q. How does Mojo Motors fight the problem of, what I call, phantom ads? Seems like dealers will run these great ads for used cars that have sold just to get traffic driven to their site. It's almost an online bait-and-switch tactic.
A. This is one of the specific "pains" of used car buying we are trying to solve. We combat this through two means. 1) Mojo motors vehicle feed is tied to dealer's inventory management systems. Once a vehicle is removed from the dealers inventory, it is removed from our site. 2) Mojo lists the vehicles original price, current advertised price, and exclusive Mojo price along with the time since the last price change. This provides transparency into the price and helps consumers identify really good deals.
Q. What made you decide to focus on New England as a used car market? What were some of the factors?
A. New England was a great test market for a number of reasons. It's the median size market in the US and it's relatively close to our NYC offices. Furthermore, our CEO Paul Nadjarian was Ford's Northeast regional sales rep for many years. It's a market we know well and a place we love.