I’m late to the Hotswap review party, I know. Frankly, after reading about them on TechCrunch I was surprised they raised 2 million dollars. 2 million? For sales videos of cars? That must have been a great presentation. I think most dealers are slightly confused by Hotswap, or, at least, I am. The idea makes sense to me in one particular sense, and that’s when the cost for the customer to acquire more information about the car is greater than the dealer’s cost to provide the videos. Said another way, when the consumer does not have easy access to the car videos make sense, i.e., eBay.
Of course, I’ve already seen videos on eBay Motors, which is why Hotswap confused me. Revenue opportunities have to be limited, because, as Jeff pointed out, few dealers area going to take the time to make videos. And this makes sense, as a dealer’s goal is to get people down to the dealership to see the car in person. I would, however, love to see video used on online vehicle exchanges like OVE, ATC, et cetera.
Buying across state, from dealer auctions, engenders a little anxiety before every purchase; in some cases, there may be only one picture and a condition report of the car. Finding more about the car is difficult, and seeing more the interior, exterior, and, importantly, hearing the car startup, idle, and if possible, run, provides great value to the dealer before purchase. Video is a great opportunity to reduce the risk associated with purchasing a vehicle out-of-state and consignors that provided videos would likely obtain a premium for their cars.