What does LotBlok do?
We help consumers quickly sell their used vehicles right from their home. When a consumer requests an offer, they get an immediate response with a buy bid. If the bid is accepted, LotBlok picks up your car within 72 hours and pays you in real-time. LotBlok handles all DMV paperwork and bank payoff. We take the stress out of selling your car!
How do we make money?
LotBlok charges a flat processing fee on every vehicle sold on the platform. Rather than complicating our business model with a variety of variable fees, these flat processing fees allow LotBlok to cover our costs while still recouping a profit on each and every auction. These fees are incurred by the seller as follows:
- $99 per vehicle that sells for under $20.000
- $199 per vehicle that sells for more than $20.000
Where will LotBlok be in 5 years?
In 5 years LotBlok will have partnerships with major auction houses across the globe. Once we’ve perfected our auction process here in the United States, LotBlok has a strong desire to help optimize third-world countries that lack a reputable registration system. As we continue to develop our blockchain solution, we intent to create a trusted digital titling system for marginalized individuals to verify vehicle ownership through documentation and data stored within our system. In this sense, LotBlok will serve as the crucial bridge for vehicle liquidation in countries that lack a tangible system to prove and transfer ownership from one party to another.
Where is your company located?
Our offices are currently located at 181 Industrial Rd in San Carlos, California.
What problems are you solving?
Selling used vehicles is complicated, time-consuming and risky. For people who have never sold a car before, it’s difficult to know where to start. As consumers try and balance stressful communications between auto dealerships and private buyers, many people quickly become disenfranchised and allow their cars to decay and devalue. Furthermore, finding a buyer is often only half the battle. From car titles to insurance papers, the current transfer system is inefficient. Paper documents are complicated, slow, insecure, easy to lose and not easy to replace.
In fact, most purchases are often the first time two individuals come in contact. Beyond ensuring that a local listing is up to par with the seller’s claim(s), there’s a vast range of discrepancy associated with the vehicle’s history, past owners, and overall maintenance. Important documents can be forged or edited, making title transfer and vehicle transport a potential risk that the buyer has to account for.
Why are you the right team to solve these problems?
With over 30 years of industry experience, our team has watched the automotive industry transform into what it is today. As strong believers in emerging technology, we’re actively searching for new solutions to optimize outdated processes. By combining with our strong relationships with our ability to execute on tight deadlines, LotBlok is poised to be the go-to solution for both consumers and dealerships for all their vehicle liquidation needs.
Our founders have contributed over $1.5M of their personal wealth into making this platform as intuitive and beneficial as possible. The support we’ve received from major players has been phenomenal and we’re constantly learning new ways to build and grow each and every day.
How do you measure progress?
Our current goal is to have 1000 vehicles being liquidated through LotBlok per day by the end of 2020.
What were some of the biggest challenges you had to overcome?
Our biggest challenge was shifting our business model from B2B to C2C and finally to B2C where we thrive today. This forced us to shut-down our marketplace for the greater half of 2018 despite constant demand from our target audience. After engaging with a number of different providers and a full revamp of how our marketplace works, we recognized that our B2C model is one that currently has little to no competition in the US. While B2B and C2C marketplaces are highly competitive, we spent 3 years building out the right business model to ensure that we have as little inventory on hand with direct revenue from each and every vehicle that passes through our platform.