The mobile automotive distribution company Handle has officially launched ‘Carmus,’ Korea’s first used car e-commerce platform, on the 7th.
Carmus is a mobile platform where every process from vehicle registration to purchasing, loans, and returns can be handled 100% on a mobile device. The service was refined over a three-month beta testing period to enhance the app’s completeness.
With Carmus, customers can purchase used cars and even manage returns completely via mobile without the need for phone consultations or store visits, significantly improving the experience by enhancing trust, convenience, and innovation in the used car buying process. All vehicles purchased through Carmus are fully protected by Carmus rather than dealers, allowing customers to buy used cars with peace of mind.
Carmus has effectively eliminated chronic issues in the used car market, such as opaque pricing, mileage manipulation, and false listings. All listings on Carmus are thoroughly verified through a ‘three-step certification system’ that checks the vehicle’s registration documents, insurance history, and ownership change records.
The first step verifies whether the dealer is registered, the second checks if the listing is from a dealer registered with the Ministry of Land, Infrastructure, and Transport, and the final step includes performance record checks to ensure the vehicle is in good condition.
In addition to the one-month performance guarantee insurance standard for used cars, Carmus offers a free three-month extended warranty to alleviate customer costs and enhance trust. Within four months of purchase, regardless of mileage, customers can receive free A/S repairs at nationwide service centers partnered with Carmus, covering up to 5 million KRW in repair costs.
Carmus has implemented a 100% refund policy for consumers wishing to cancel within seven days of purchasing a vehicle, without requiring a separate phone application or justification process, provided it has been driven less than 500 km. In the case of refunds due to simple change of mind, the full purchase price will be refunded, and Carmus will handle vehicle retrieval directly.
Consideration has also been given to promoting coexistence and convenience with dealers. Carmus has boldly eliminated advertising fees charged to dealers. In typical listing sites, dealers must pay separate advertising fees to register listings and must additionally pay a commission once a sale is completed. However, Carmus allows dealers to register listings without any fees, as long as they pass the certification system, instead charging a nominal commission upon the successful sale of the vehicle.
The workload for dealers has been significantly reduced. Offline store dealers often expend considerable effort on face-to-face consultations, paperwork, and other tasks, whereas Carmus handles tasks such as delivery and returns, allowing dealers to focus solely on vehicle management.
For the first time in the used car industry, Carmus has completed its registration as an online loan recruitment corporation with the Financial Supervisory Service, offering customers simplified comparisons and mediation services for optimized loans. Consumers can now choose the best loan product by comparing interest rates and limits across various loan products. Currently, they have launched loan products in partnership with Meritz Capital and aim to develop competitive loan offerings with three major financial institutions by the end of the year.
CEO An In-sung stated, “Until now, the used car market has been assessed as a ‘lemon market’ due to information asymmetry between buyers and sellers, but with Carmus, an unprecedented innovative car buying experience not only becomes possible but also creates a transparent car trading culture.” He added, “Currently, Carmus holds approximately 3,000 vehicles, with plans to gradually increase this number to 10,000 by the end of this year and 50,000 by the year after to expand consumer choices in the used car market.”
CEO An In-sung took the stage on the afternoon of the 3rd at the 10th anniversary demo day ‘Spark Lab Demo Day X’ of the startup accelerator Spark Lab, sharing the core values and vision of Carmus with investors and industry stakeholders. Carmus aims to innovate the outdated distribution structure of the used car market, provide consumer value, and promote coexistence with the market and dealers, establishing the first domestic used car e-commerce platform, which received seed investment from Spark Lab in 2021 due to its innovative nature.
In-sung An daedusj@autodiary.kr