Competitive Auto Market Drives Car Shopping App Usage

The last couple of years have been dynamic ones for the auto industry. As production of new cars has been limited by the effects of COVID-19 and the chip shortage, the price of both new and used cars has skyrocketed.

That has made it important for shoppers to follow the market closely so that they can buy the right car, and for car owners to take good care of their existing vehicle.

“A lot of our users want to know if the market value of their car is going up or down, and a lot of them were surprised over this last year how their car was gaining value,” Alessandro Mannino, associate director of product at Bumper, told PYMNTS. “Usually, you don’t see that. Usually, it’s a depreciating asset.”

Adding a Reward Program

Bumper has been helping customers keep track of these trends for about two years with its app that provides vehicle history reports, estimated market value and other information.

The company has also been adding other services that make the app a resource that helps not only with buying and selling but also with car ownership.

It announced the latest addition on April 4: a rewards program that offers savings and discounts on car-related products and services to Bumper subscribers. The initial group of nine partners includes providers of automotive parts and accessories, parking spots and maintenance and repairs.

“We’re trying to find companies that are also sort of technology companies that are offering services to our users that allow them to not just save money with our discount code, but also with their process and also save time,” Mannino said.

For example, with SpotHero, users who are going to a sporting event or a concert can easily look up all the parking garages in that area, compare prices, book a spot and use a Bumper discount code.

For users, these rewards help pay for the subscription and improve their experience of owning the car. At the same time, they can continue to access unlimited vehicle history reports. Many do so in order to watch the value of their own car, shop for a second car or help a friend find a car.

For potential partners of the rewards program, Mannino noted that Bumper subscribers have demonstrated an interest in getting information and services for their cars.

Building a Super App

The rewards program is the latest of the features that have been added to the app. Bumper launched its app about two years ago with the idea of offering vehicle history reports on a monthly subscription basis so that people shopping for a car could get reports on as many vehicles as they’d like without having to pay a fee for each report.

Most car shoppers are in the market for only about three months, but Bumper quickly set about expanding the services provided through its app.

Last year, it added a feature that makes use of the data available from connected cars. Depending on the vehicle, the app may be able to use that data to show the vehicle owner the fuel level, the state of charge, the time the next oil change is needed and even lock and unlock the car.

“It’s a feature that’s in its infancy, but we plan to eventually do more with that data that we get from the connected vehicles, where users can potentially track different things,” Mannino said.

The next addition to the app will be a feature that guides car shoppers through the process of selecting and inspecting a used car. This soon-to-be-launched tool will give shoppers a checklist of things to look out for in order to steer them away from cars that might have issues.

“We’re really going to be working next to solidify us more in the space and build these features out,” Mannino said. “Really, the end goal is to be a super app that becomes a utility for car buyers, sellers and owners.”