Abracar was developed in 2016 as part of the Accelerator program of Allianz X and is the first spin-off of the incubator. The startup is Germany’s first professional car broker. They help car consumers to sell their car at the highest price without any effort. Abracar takes care of all steps of the selling process starting by creating a professional expert’s report, over 50 pictures, writing an attractive listing, filtering the potential buyers, negotiating the final price and preparing the contract.
The car buyer benefits from the expert’s report, an Allianz warranty, financing solutions and competent consulting.
According to Abracar, 84.6 billion euros was spent on used cars last year making this a lucrative market where more and more online car dealers and brokers are doing business. Some examples, include: Mobile.de and wirkaufendeinauto.de. Contrary to other commission based business models, Abracar does not earn money until the car is actually sold–a 4% percent commission is charged to the seller in the event of a successful sale. There are minimum and maximum charges of 399 and 999 euros.
Optimizing customer behavior
Abracar optimizes customer behavior by providing security and trust through expert opinions and warranties. Abracar`s business model enables customers to directly buy and sell cars without involving third-party vendors and without the hassle associated with private car selling. At Abracar, the sale can take three to six weeks.
During abracar’s test period, the number of cars the company sold in the first four months were in the three digits, with an average of just 1.3 appointments per sale. The service received an overall rating of 4.8 out of 5 stars from customers
How does it work?
In order to be able to offer used vehicles via Abracar, a few details about the vehicle and a price presentation have to be given to the portal. Abracar then makes an adjustment with the desired sum and, in case of doubt, corrects the price upwards or downwards. To make the exact condition of the vehicle transparent and for the photos, Abracar sends an expert to the customer and 50 to 100 photos are produced per vehicle.
The team at Abracar takes care of the initial, perceived by many sellers as very complicated, steps for the private car vendor, e.g. providing quality listings, taking photos, facilitating buyer selection, making car selling as effortless as possible. Additionally, Abracar’s approach increases transparency of information and trust in the used car market for buyers by having each car checked by independent car experts from known organization such as TÜV as well as by providing a free 60-day-warranty to every car buyer. And, the private seller can achieve a higher price with these trust instruments while avoiding dealers’ margins.
In the next step, the Munich Startup will create listings, including advertisements on mobile.de.
Why we selected Abracar for DIA Amsterdam
Abracar is providing a far better customer experience in the market and they likely will continue to create value as an independent company with its direct-to-consumer approach to car selling.
Who are Abracar?
Munich based Abracar is the first spin-off of Allianz X. Allianz X is the company builder of Allianz Group, identifying, building and globally scaling new business models related to insurance, asset management and assistance services. The Allianz-X fund has 430 million euros available for spin-offs.
Abracar’s concept was developed by Co-Founders Sebastian Jost und Orhan Koeroglu at Allianz X's Startup Program in 2016.
Co-Founders Sebastian Jost und Orhan Koeroglu of Abracar
“We do not buy vehicles, but our customers commission us to create an opinion and find potential buyers,” Ohran Köroglu CO-founder Abracar
Presenter: Orhan Köroglu
Presenter: Sebastian Jost