Cazoo has completed the launch of its online used car retailing and vehicle subscription services in the Spanish market, promising to “bring the best car buying experience to consumers”.
Founded by Alex Chesterman OBE in 2018, the New York Stock Exchange-listed auto retailer is launching its new market using market exposure through high-profile sponsorship deals with Serie A football clubs Real Sociedad and Valencia.
In November last year, it also acquired Barcelona-based car subscription service Swipcar.
Commenting on the official launch in Spain – following the 2021 launches in France and Germany respectively – Chesterman said: “We are very pleased to be launching in Spain, following our recent launches in both France and Germany late last year.
“We have reinvented car buying to make it simple, convenient and to give consumers total peace of mind when buying their next car.
“With Cazoo, you can buy a used car completely online, have it delivered to your home in a few days and have up to a week to make sure you love it.
“We have a great team in Spain and look forward to bringing the best car buying experience to consumers in the Spanish market.”
Cazoo enters the Spanish market with the promise to provide car buyers with better choice, value, transparency, convenience and peace of mind when buying their next vehicle.
It promises delivery “within a few days” and a seven-day money-back guarantee if customers don’t like their vehicle choice.
Cazoo has sold more than 65,000 cars in the UK since its launch just over two years ago and is aiming for £2bn on sales of 100,000 used cars by 2022 on its way to a long-term target of £15bn in revenue.
However, a recent first quarter trading update revealed it was struggling to improve profitability in its pursuit of growth.
Revenues rose 159% year-on-year to a record £295 million in the period after sales volumes increased 102% (to 19,713) but gross profit per unit fell 19% to £124 and Cazoo’s total gross profit fell 2% up to £2 million.
Cazoo stated in its annual financial results for 2021 that it aimed for a gross profit per unit of £900 this year, with the aim of reaching £3,000pu in the longer term.
In Cazoo’s first quarter trading update, Chesterman said he was “extremely pleased” with the company’s record first quarter sales and unit sales, highlighting plans to ramp up reconditioning capacity to deliver continued growth and “enabling us to continue our progress toward our long-term market share ambitions.”