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TRED: The Mobile Dealership | DrivingSales News

TRED: Sell Online, Don’t Trade Into A Dealership

June 4, 2015 2 Comments

TRED, a start-up based out of Seattle, WA has settled on a business plan that both sells vehicles online and seeks to prevent consumers from trading in their vehicles to a dealership. The organization would rather have consumers sell their cars to them. The company has taken on multiple business models and settled on one that allows them to sell vehicles for consumers on a private party basis. It all starts with the advertisement which promotes avoiding dealers when it’s time to trade-in.

TRED doesn’t tell consumers that there’s anything bad about dealers except that trading your vehicle into a dealership will have a negative financial outcome. According to an interview with GeekWire, Grant Feek, the CEO of TRED said that by avoiding dealers consumers might be able to save a lot of money. Speaking to GeekWire, Feek said, “If you trade your car to dealership, you will lose 30 percent or more of the value because the dealership has a lot of fixed costs. They have to run a servicing department, a parts department. They have to finance a lot of cars they own on their lot. There are real estate costs, mortgage costs. We don’t have any of that stuff.”

TRED operates as a self-proclaimed mobile dealership that facilitates private party sales for consumers. The package includes inspection, photography and listing on “nearly a dozen” websites such as craigslist and Autotrader. The company also sets up test drives and is able to advance the sales process up to finalizing the sale upon approval of the vehicle owner. TRED charges the consumer to use their auto sales services. Their website states that they ask for a fee of 3 percent of the final sales price with a minimum charge of $899. Rounded up, $900 would be 3 percent of 30,000.

Selling vehicles private party isn’t the main way in which TRED is hoping to step in the place of a traditional dealership. The company also accepts trade-ins and has vehicles available for sale to ship. Consumers can purchase a vehicle from TRED and have it shipped to them all across the country. However, the incentive for them to trade-in is particularly promoted on the TRED website. For the time being TRED only helps consumers in the greater Seattle, WA area sell their car but will ship across the country.

What do you think about TRED? Do you think that many consumers will be willing to forgo the benefits of a vehicle trade-in in order to have TRED sell their vehicle for a charge of at least $899? Finally, do you think the rise of online used vehicle companies like Beepi, Carvanna and TRED will continue or fade away?

About the Author:

The DrivingSales News team is dedicated to breaking the relevant and the tough stories affecting car dealers. Have questions for DrivingSales News? Reach the team at news@drivingsales.com.

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    Roberto

    The problem with this is that most people that sell their own vehicles usually dont take the time to fix the vehicle they are selling leavin the buying consumer with a repair bill, or worse a safety issue. At least dealerships take the time to make sure the vehicle is in proper working order, a person who is trying to save a buck by selling private will cut corners and take shortcuts. A dealership has liability and most dealers are not willin to put their reputation on the line by selling something with issues.

    TRED. Is an example of a Silicone Valley “MoneyZilla”. There is so much venture capital looking for a place to tryout a new trend, money gets poured into any young internet company that does not even make sense. Did the investors even think about a $30k trade-in gives an average of $1800 of less sales tax that is saved by the buyer at the dealership?

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