CLEVELAND - Did you know you can get a new car for a fraction of the sticker price? This could be a great solution for people who don't have a car or can't afford a new car.
We sat down with a man from Cleveland who wants to give those with financial problems a chance to get cars they want and need. It's called group bidding, where lots of folks get involved and that brings the price down for you.
“If you have a bunch of people put money toward something, you ultimately make that product cheaper,” said Bryan Randall, CEO of a new website called Groopid.com . “Groopid is for the people who don't have a lot of money…don't have the credit to go get a car. But we still wanted to make it a level playing field,” Randall told us.
Here's how it works.
Say a new car costs $30,000. Groopid will ask for 1,000 people to pay $30 each for a bid pass. Once the 1,000 people are in, the participating dealership is happy because the car is now paid for with the bid passes.
The bidding then starts. Bids can only be between a penny and a dollar and only a certain amount of bids can be put on the car until the last 24 hours. Randall told us, that concept keeps the price low.
“There are people out there that are going through what I once went through,” Randall explained. In 2008, he found himself without a job and with such bad credit he couldn't got to small car lots and pick up a car. “So, I'm walking out of those places feeling very defeated and I'm like it is the worst feeling in the world,” Randall said.
Now that he's back on his feet, he wants you to benefit from his new idea.
The site just went live this month and to kick things off, it's offering super low bid passes on new cars and trucks. There’s a Ford F-Series pick-up truck and the group bid is just $5. There’s a Ford Fiesta with a bid pass price of $2; Ford Escape, $2; and a Ford Edge is $4.
They are all cars that working people might like to get their hands on for prices they didn't think existed. “This is something that gives them a chance to see what it's like to drive those new cars or get the car of their dreams hopefully,” said Randall.
All of this depends on the number of people buying the bid passes. At $2, $4 and $5, there need to be thousands of people involved. The bid-pass deadlines for the kick-off are August 9 and August 17.
The site does not charge for each bid when the auctions start and if you don't win the auction, Groopid has partnered up with businesses so you can apply that bid pass amount toward their goods or services.