Pictured above: The official signing event with a novelty key. From left, Masaya Katsuta, Chief Strategy Officer at AutoFlip, CEO, Takayoshi Udagawa, and Patrick Davey and Ken Quigley, of AutoFlip New Zealand.
Innovative vehicle trading platform, AutoFlip, which says it is transforming the way people sell cars in Australia, has expanded into New Zealand. With a commitment to transparency and fairness, the company has quickly established a foothold in the Kiwi market. CEO Mac Passmore reveals the strategies behind their smooth Trans-Tasman transition, the importance of local adaptation, and offers insights for businesses eyeing new markets.
AutoFlip is a cutting-edge vehicle trading platform that revolutionises how people sell their cars. “AutoFlip was born out of a desire to bring transparency and fairness to the car trading market,” says Mac Passmore, CEO of AutoFlip NZ.
Originally launched in Australia in 2019, the platform was created to address sellers’ frustrations when trying to get a fair deal. “We connect sellers with hundreds of car dealers, allowing them to receive the best possible offers within 48 hours without ever leaving their homes,” Mac explains.
After roaring off the starting line in Australia, AutoFlip set its sights across the ditch, keen to expand into the New Zealand market. But making the Trans-Tasman move is much harder for a business than your average Uni graduate.
When AutoFlip decided to expand into the New Zealand market in early 2023, they knew it would be no easy task. Navigating new terrain is always challenging, but doing so in a competitive industry like vehicle trading adds another layer of complexity. Six months after its New Zealand launch, AutoFlip has not only managed to establish itself but has thrived, gaining the trust of Kiwi car sellers and buyers alike.
Homework done right
For Mac and the AutoFlip team, the decision to expand into New Zealand wasn’t made on a whim. It was guided by a strong sense of purpose and a clear understanding of what the company stood for. “We knew exactly what problem we were solving and who we were solving it for,” Mac says, recalling the early discussions about expansion. “Our goal was to bring transparency and fairness to the car trading process, and we never wavered from that, even when faced with the temptation to take shortcuts.”
This focus on purpose is something Mac believes is critical for any company looking to expand into a new market. “You have to be authentic. Customers can tell when you’re just in it for the quick buck. We were committed to maintaining our values, no matter what,” he adds.
Before making the move, AutoFlip invested significant time and resources into understanding the New Zealand market. “We did our homework,” Mac says with a smile. “Understanding customer behaviour, preferences, and needs was our first step.”
The team delved into data on change of ownership, market size, and even the cultural differences between Australian and Kiwi car sellers. “We realised that New Zealanders had fewer options for transparently trading their cars. Most will draw a line between AutoFlip and Trade Me; however, the two platforms operate in two distinct markets”, Mac explains. “By understanding this gap, we were able to position AutoFlip as the go-to solution for those wanting to cash up or trade in their vehicle.”
Trust is everything
Brand trust is a business buzzword bandied about often, but it is essential for any company expanding into a new market. Market research from Eldleman shows that 59 percent of consumers are more likely to purchase new products when they trust the brand, even irrespective of price.
Mac doesn’t shy away from admitting that building brand trust was one of the most challenging yet crucial aspects of the expansion. “Trust is crucial, especially for an online platform,” he emphasises. For AutoFlip, this meant going the extra mile to ensure every interaction was trustworthy.
“We used AI technology to create detailed vehicle inspections,” Mac explains. “This wasn’t just about using cool tech; it was about being transparent and reliable. Our team’s integrity is critical. We want every interaction to leave people thinking, ‘I can trust AutoFlip.’”
But it wasn’t just about technology. AutoFlip also decided to handle the entire transaction process for their Kiwi customers, unlike in Australia, where buyers and sellers handle payments directly. “In New Zealand, we facilitate the entire transaction. There’s no need for customers to hand out their bank details to a car dealer they don’t know,” Mac says. “This was a big trust-builder for us.”
Mac is quick to point out that trust isn’t something you can buy or shortcut your way into – it has to be earned. “We listened to what the market needed and adapted quickly. Trust isn’t given; it’s earned, and we were prepared to earn it every day,” he notes.
Adapt or get left behind
One of the biggest mistakes companies make when expanding into new markets is trying to simply transplant their existing strategies. Mac knew this wouldn’t work for AutoFlip. “What works in Australia doesn’t necessarily work in New Zealand,” he admits. “We had to adapt our branding and our approach to resonate with the local culture and market dynamics.”
Mac believes that flexibility is key to successful expansion. “You have to be willing to adapt,” he says. “The market will tell you what it needs; your job is to listen and respond.”
No expansion comes without its challenges, and for AutoFlip, one of the biggest was balancing supply and demand on their platform. “Too many buyers without enough product, or vice versa, can frustrate users,” Mac explains. This delicate balance required constant attention and adjustment.
“We quickly realised the potential in B2B transactions, including fleet disposals and dealer-to-dealer sales, and had to adjust our strategy accordingly,” Mac says. “Our ability to pivot and adapt to market conditions has been a key factor in our success.
Mac’s playbook for business expansion
As the conversation shifts to advice for other businesses considering expansion, Mac’s passion is evident. “First, you have to know your purpose and be authentic,” he begins. “Your brand needs to stand for something, and that shouldn’t change just because you’re entering a new market.”
He also stresses the importance of doing thorough market research. “Do your homework. Understand the market inside and out before you make your move. Without this understanding, you’re setting yourself up for failure.”
Mac’s final piece of advice is about adaptability. “Keep an open business mind,” he says. “Nothing is as easy as you think it is, no matter how well you plan. Be prepared to pivot when necessary, and always listen to your customers.”
Reflecting on AutoFlip’s journey, Mac is proud of what the company has achieved in New Zealand. “Startups are risky but fun,” he says. “If you’ve got a great idea and done your research, give it a go. The sense of fulfilment, when you see progress, is worth the risk.”
