Daily Journal: Go, Carmigo, Go: Tupelo-based startup looks to revolutionize car sales

Go, Carmigo, Go: Tupelo-based startup looks to revolutionize car sales

By DENNIS SEID Daily Journal | May 9, 2021

TUPELO • A Tupelo-based startup hopes to revolutionize online car-selling with an innovative approach.

Carmigo bills itself as an online auto marketplace that helps individuals sell their vehicles directly to dealerships across the country in a one-day auction.

“We connect the individuals with car dealers right now in Mississippi, Alabama and Tennessee,” said Andrew Warmath, the founder and CEO of the company.

Thirteen dealerships are currently in the Carmigo marketplace, but inquiries have been coming in from dealerships across the country.

“We do everything from building the listings to bringing the buyers to after the vehicle sells, when we handle all the paperwork, the transportation, the money transfer,” Warmath said. 

Other sites like Carvana and CarMax can buy someone’s car or truck or SUV, but Carmigo raises the bar by offering multiple dealerships and multiple offers for a vehicle.

“Carmigo was founded because we saw the frustrations individuals had when either selling a vehicle on their own or trading it in,” Warmath said. “We are introducing competition where competition wasn’t previously.”

Carmigo’s online marketplace, which began in January, brings buyers directly to the user. It combines the convenience of trading in a vehicle, but with the competitiveness when self-selling.

Carmigo launched quietly in January with the hopes of selling 25 cars. Instead it sold 70.

“It was a soft launch with basic functionality, with the intent of getting some feedback and hear the pains people had, as well as success stories,” Warmath said.

With software developers in Nashville, Dallas, Los Angeles and elsewhere across the country, the site has been made more user friendly. And it was done just in time for the recent launch of Carmigo in Nashville.

Carmigo works through a multi-step process :

  1. The seller submits their vehicle’s info to the website to get an immediate estimate
  2. Once the seller receives the estimate, an inspection is scheduled
  3. A Carmigo representative comes to the seller to build the personalized listing and uploads it to the marketplace
  4. The vehicle is made available for a one-day live auction
  5. After the vehicle sells, Carmigo handles all the paperwork, title work, payoff and transportation

“The whole process was so simple and easy. All I had to do was type my VIN in and schedule an appointment … I got exactly what I was wanting for our car within 24 hours,” said Grady Hurley.

With Carmigo bringing dealerships that submit bids to the seller during a one-day auction, users can watch the auction live as real-time bids come in for their vehicle.

Much like a traditional auction, Carmigo allows the user to set a minimum price. If the minimum price is not met, the individual is not locked into selling their vehicle and the seller does not owe a fee. This guarantees that customers get the value that they want for their vehicle. Once the vehicle is sold the $150 fee is deducted from the vehicle proceeds.

With the recent uptick in used vehicle sales, and the lack of availability for new vehicle inventory, dealerships are focused on sourcing quality used vehicles, Warmath said. 

“Dealerships have been just as excited to use our marketplace as sellers,” he said. “Dealers are looking everywhere for quality inventory right now and there is no other place like Carmigo that offers direct access to individual sellers.”

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