James Baggott

Online only dealer Cazoo’s ambitious plans revealed

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Hi all

We published this story this morning on Car Dealer Magazine website. I thought I’d share it in here for some of your famous forthright opinion...

https://cardealermagazine.co.uk/publish/online-start-cazoo-plans-sell-217000-used-cars-year/186833

Can they really sell 217,000 used cars a year? Or is that pie in the sky.

Let me know 

 

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The investor pack reveals Cazoo will lose more than £70m in the next three years as it attempts to ramp up sales. 

217k not a chance by 2025 lol

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12 minutes ago, James Baggott said:

Hi all

We published this story this morning on Car Dealer Magazine website. I thought I’d share it in here for some of your famous forthright opinion...

https://cardealermagazine.co.uk/publish/online-start-cazoo-plans-sell-217000-used-cars-year/186833

Can they really sell 217,000 used cars a year? Or is that pie in the sky.

Let me know 

 

I wonder how many of the 217,000 cars will be the part exchanges sold for a loss/slight profit at the auctions?

This is how the Pinocchio dealers ramp up their numbers it seems?

Everytime i go to BCA Newcastle i see all four of their covered transporters (£90k a piece!)  sat there gathering dust.

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Hello El Presidente :P having seen on tv there advert its total pie in the sky, the thing i see is men all round a desk patting each other on the back and remarking how superb the advert is, if that is there idea of marketing, then no chance, from day one, i think that what all these investors are forgetting is they are selling second hand goods, and second hand goods have problems !

Lets look at there fleet, all over 3.5 ton, that means they should have tachos, so no records will be broke by the delivery driver, and trade plate drivers wont be interested, plus they're not trained to do the handover at pos, and cazoo will want proffesional handover anyway .

The cost of advertising will kill the whole concept, has any of these money men actually ever bought a second hand car ? I posted on this next bit before, if you view there actual vehicles on there site, then do a dvla check, you will see they have been stood several months, most are not even sorn ! try delivering a car thats been stood that long! batteries ? brake discs ? oh the headaches !

 

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Good point. A car stood around for months, popped on a truck then delivered to customer and unloaded must be awful. Need a run round the block to clear of the discs, double check balancing / tracking all ok etc don’t they. 
 

217k in a year absolutely no chance. Will they sell cars, yes will it be a huge number not really.

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Even Bernie Madoff would not have projected those figures.

Could make a good Will Ferrell movie.

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That’s over 4000 units a week. How many trucks and drivers needed for that?? Nearly 600 handovers  a day.....

Very ambitious. 

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16 minutes ago, New year revolutions...... said:

I had a kazoo when I was a kid or a bazooka as I knew it

My parents took it off me in the end because all it did was make lots of noise but not actually achieve anything

I see what you did there :D:lol:

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I may be missing something but what is their USP? Why do they believe they can get to that figure? We have had online only companies before that have tried and failed.

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Next on BBC is Dragons Den from Islington.

First into the Den is Mr Cazoo who is hoping to raise £10m for 10% of his unique online used car business.

Hi Mr Cazoo my name is Deborah. How long have you been running your business and what have you spent on Advertising so far.

’12 weeks and we have sold 1000 cars and spent £250,000 on TV and AT advertising ‘.

Deborah. Tell me about your premises.

‘We have an umpteen hundred thousand sq ft buildings and compound prep area employing several hundred with no customer sales area ‘Deborah.How much profit in years 1,2 and 3.

‘We expect to lose £70million’

Deborah. I think I will pass on this one.

Hello Mr Cazoo my name is Touker. Tell me about your sales in years 4 and 5 .

‘We expect to sell 120,000 and then 200,000 ‘ and make £250m 

Touker. In that case I will make you an offer.I will give you £100 for 25%.

Hello Mr Cazoo my name is Sara.What are your cars made of.

’ Mostly metal ‘

Sara. Oh dear,I would have preferred that they were knitted or sewn together so I am out.

Hello Mr Cazoo,my name is Peter.I think you are taking the piss, so F...k off !

 

 

 

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Thanks for all your comments on this - made me laugh. Really good to get your expert opinion on it too. Keep an eye out for the next issue of the magazine as there will be a more in-depth feature on this

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How many cars does the whole of Arnold Clark sell in a year?   Is it about 300k / 350k cars I have seen quoted?   

 

This makes this even more laughable. 

Ive said already if a few of the big supermarkets set up delivery offering both digital / traditional routes of purchase they will destroy Cazoo. 

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there arent enough decent cars to go round

so there will have to be a feeding frenzy

trade prices go up to unattainable figures

margins for everyone gone

the purse starts to empty

lets be honest its a load of suits round a table like at poker chucking their money in because they have too much of it and they can

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30+ years in the trade may have sucked the laughter and humour out of me, but their statement and projections did make me genuinely laugh out. Its just  bullshit PR for the investors. Overly ambitious and very naive. It will be interesting to read what excuses they will offer to investors in a year or 2, when it becomes apparent the financial projections are not going quite to plan.

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Have CAZOO read the distance selling regs ? CRA 2015

they are in for a busy few months , hope they have a good in house legal team, already lots of people have returned their cars, I think the customer was expecting a brand new one like AMAZON LOL

Edited by Holmfirth Cars

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217,000 CARS is 600cars a day 7 days a week 365 days non stop my god they will need 200 staff to just do the V5's and invoices , 600 deliveries 600 lorries , 600 drivers :o

48 k a day on drivers , 24 k a day staff for sales for starters , some one is telling big whoppers aren't they or cant count  :lol:

Just some uni techy weirdos sat round tables drinking costa coffee making projections up to spend borrowed money .:rolleyes:

will it work ?  er NOOOOOOOOOOOOOO not in a million years would be my best projection .

Some poor sods going to be out of pocket pretty soon listening to those fools . 

earning £300 a car gross will cover that one LOL 

OH Forgot . 300 more staff for the bloody returns LOL 

Edited by David Horgan

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I’m not sure who’s summed it up the best, Trade Vet or David Horgan, although a special mention must be made for TVs post :lol:

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8 hours ago, Tony F said:

30+ years in the trade may have sucked the laughter and humour out of me, but their statement and projections did make me genuinely laugh out. Its just  bullshit PR for the investors. Overly ambitious and very naive. It will be interesting to read what excuses they will offer to investors in a year or 2, when it becomes apparent the financial projections are not going quite to plan.

I wonder if Mr. Chesterman will be taking a nice wage from Cazoo whilst his investors lose all their money in 3 yrs? 

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There's a great deal of loose money sloshing around in investors' hands at the moment, looking for a home. That's how hare-brained operations like these get off the ground.  As others have shown, the numbers just don't work...

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3 hours ago, Halfpenny said:

There's a great deal of loose money sloshing around in investors' hands at the moment, looking for a home. That's how hare-brained operations like these get off the ground.  As others have shown, the numbers just don't work...

The investors just need one of the big ideas to go huge and it all pays off. Its insane to me but what do I know.

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Not sure about most of their cars but the margin they have on a 2019 Volvo S90 PHEV is ridiculous.  I purchased the sister car to the one they have advertised for £31k last year, at the same time they put theirs up for over £38k and it has not moved in price since.  

 

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We should invite Mr Chesterman on here to share his wealth of knowledge. 
 

also point him in the direction of the how to become a car dealer guide :D

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Posted (edited)

When you break it all down, bca are providing the cars, bca are providing the space at corby for refurbishment, bca are valuing / refurbing  / doing disposal of there trade ins, so maybe when the bubble busts, bca are all set to step in, and, now this is the best bit, bca, have not bought any cars ! comments ?

2 minutes ago, have a word with the wife said:

 

 

Edited by have a word with the wife
pissed

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13 hours ago, have a word with the wife said:

When you break it all down, bca are providing the cars, bca are providing the space at corby for refurbishment, bca are valuing / refurbing  / doing disposal of there trade ins, so maybe when the bubble busts, bca are all set to step in, and, now this is the best bit, bca, have not bought any cars ! comments ?

 

Looks like a win for bca

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