CarPay, a company specializing in the sale and purchase of second-hand vehicles, is bringing the American method of secure transactions to Israel. The service aims to revolutionize the second-hand car market by providing an advanced financial and technological solution to prevent fraud. The goal is to standardize and transform the way people buy and sell cars in Israel.
Led by CEO Tomer Bar Or, CarPay has developed an application that facilitates the secure transfer of car ownership and payments, eliminating the risk of financial fraud.
The company has also partnered with CAL to offer secure financing options for transactions. Notable founders and partners include Omer and Roi Adam, Maor and Shanir Malol and the Psagot easy-bus transportation company.
The lack of a secure mechanism for transactions in the Israeli market has led to significant risks for both buyers and sellers of second-hand vehicles. Currently, one party must take the risk of completing the transaction first, often leading to fraudulent activities. Millions of buyers and sellers have been left without protection, having to trust unfamiliar individuals in high-value transactions.
CarPay was established to address this issue and provide a safe environment for selling one’s valuable assets. The service aims to minimize various risks, such as dealing with pledged or stolen vehicles, ensuring accurate vehicle information, and preventing lengthy legal proceedings.
By utilizing the secure CarPay account, both parties are protected from fraud. Sellers’ funds are secured in the account, while buyers can be confident that ownership will be transferred or their money refunded. CarPay holds licenses to provide financial asset services and credit facilities.
What does CarPay offer selles?
The company offers several services to sellers, including the option for buyers to transfer payments to the secure CarPay account before the seller transfers ownership. Once the seller completes the ownership transfer, CarPay ensures a fast and secure payment transfer to the seller’s account. This mutually beneficial approach removes the need to prioritize which party takes the first step.
“We have created a digital, innovative and transparent trust service that protects the interests of the seller and the buyer,” said Bar Or. “Soon, we will launch the service on additional second-hand products and secure transactions, such as electrical products, furniture, and baby strollers – basically, everything that is traded second-hand and is vulnerable to fraud.”
In exchange for providing trust services, securing funds, and facilitating safe ownership transfers, CarPay charges a commission ranging from NIS 250 to 500 per transaction, depending on the transaction size. This fee covers a range of services, including secure fund storage, ownership verification, buyer and seller identity checks, accident and insurance history verification, and customer support.
The market potential for CarPay’s services is substantial, with over NIS 60 billion worth of second-hand transactions occurring in Israel each year. The average vehicle price is around NIS 70,000, with at least half of the transactions involving private buyers and sellers.