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AutoAle is looking to enter the somewhat crowded car sales market in Finland. The company isn’t all that unaware of the situation or unexperienced as you may think. AutoAle has been co-founded by Mika Fagerström, Hannu Kytölä and Dmitry Genin. Fagerström was the founder of the hugely popular nettiauto.com in Finland that basically took used car sales online. So what makes AutoAle better than the existing solutions on the market? In short – they’re targeting the market of new or nearly new cars, something that is still being sold through traditional sales channels (ie. dealers). With AutoAle, dealers can advertise new or nearly new cars online to an audience that do not want to buy a traditional “used car”.

“AutoAle.fi was created to facilitate the purchase of a new car and save customers’ time and money. At the same time, dealers benefit from decreased marketing costs and an expaded geographical reach,” says Mika Fagerström.

The online store has been built in co-operation with Vendep, a Finnish development agency that employes 14 project managers and concept designers in Finland and the US who manage the actual work of the 140 Indian coders they also employ. The traditional model Vendep goes by is that they don’t charge money for the development work, but take a share of the company.

AutoAle.fi as a web service still feels a little incomplete, and the founders acknowledge this in their press release. The company did a soft launch of their servkce over the weekend with a Finnish car dealership Laakkonen. Laakkonen sells some of the more high end cars in Finland, including BMW and Audi.

One of the more concrete advantages for the consumers are the direct discounts the dealerships are able to give to nearly new cars, that have been test drive cars for example. One example is the BMW 5-series (Gran Turismo) priced originally at a hefty 97 000 euros, but the dealership is giving a discount of nearly 22 000 euros on the car (image below). However, you’re also able to find more economically priced cars from the service so it isn’t only for the high end fanatics amongst us.

AutoAle is also a concrete example of the tightening competition in the market. Innovation is becoming more gradual as the market is getting saturated with competitors. Nevertheless, this shouldn’t play against the attempt at all. With a team that has done it before – we should expect good things in the future from this company.

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