poss cazoo problems?

[gc123]

MSN

dont have any skin in the game here but hope it may help people looking to purchase.

looks like the bubble may be bursting.

 

[sovietspybob]

The writing has been on the wall for a while unfortunately

And the second they stopped their core business of delivering cars and were going to try and just be another car selling site and try to compete with autotrader it was all over.

It's a real shame as i really liked the idea and was really considering using them for my next car.

 

[ShivP]

Deadline expired today, looks like it is a goner

 

[dlockers]

Rip. It totally misunderstood what a platform business was when it started buying stock.

 

[Ev0]

Not surprising. They were a customer of mine in a previous role and saw them shrinking the business quite dramatically.

 

[Rilot]

How does that leave buyers' warranties?

 

[b0rn2sk8]

How does that leave buyers' warranties?

They’ll have none unless there is manufacturer warranty on the vehicle.

I don’t know if Cazoo offered warranty over and above the statutory 6 months but I thought they only sold ‘young’ cars so I doubt owners will be overly exposed. You don’t deny to get big billls in the first 5-6 years.

 

[Glanza]

Online car dealer Cazoo collapses into administration putting 200 jobs at risk

UK-based used-car website once valued at £6bn is now looking for a buyer for its remaining assets

www.theguardian.com

 

[jpaul]

surely warranty is independent of cazoo - no one sane woulds buy from them otherwise (warrantywise and rac being suppliers on some non cazoo cars I inspected recently)
when do the sales start of remaining cars.

 

[Semple]

when do the sales start of remaining cars.

I imagine they'll just go in bulk to auction, it'll be too much faff to sell them individually to private buyers - especially as people will be assuming that there will be bargains available.

 

[Diddums]

I do wonder how this will affect the used car market, if at all. Didn't they go on a massive rampage buying everything they could hoping that it would sell? I suspect they're sitting on quite a bit of stock that will now need to be sold at a loss.

 

[tom_e]

I do wonder how this will affect the used car market, if at all. Didn't they go on a massive rampage buying everything they could hoping that it would sell? I suspect they're sitting on quite a bit of stock that will now need to be sold at a loss.

They were offering over £1k more than any other bulk buyer or the dealer when I got rid of my old car at the start of the year. It didn't make any sense as it was nearly £2k more than the highest bid on Motorway.

A week or two later this all started to come out and if that's how they were buying it's no surprise they went under as there's zero chance of them making any money at those sort of offers.

 

[Kenai]

I suspect they're sitting on quite a bit of stock that will now need to be sold at a loss.

I'd read previously that they pretty much offloaded all their inventory back in March

 

[Kill_Phil]

I'd read previously that they pretty much offloaded all their inventory back in March

Yeah same, with the intention to an advertising platform to compete with the likes of autotrader. Although tbf they are still advertising just over 8k cars on their website which you would be insane to buy

 

[Kenai]

Yeah same, with the intention to an advertising platform to compete with the likes of autotrader. Although tbf they are still advertising just over 8k cars on their website which you would be insane to buy

The stuff on there at the moment all seems to be with third party sellers - carsa, stoneacre, etc.

 

[BDEE]

No more annoying adverts!

I feel for the staff who will lose their jobs. Alas mis-managed in terms of the growth expectations and cash burn.

 

[wesley]

If we never had the covid pandemic, Cazoo would never got took off. They got too big just end of the covid pandemic and people started going back to the old route buying the second hand cars.