Tech startup Bidbus has received $3.3 million in seed funding to improve the sometimes annoying process of selling your used car.
The AI-backed system lets owners list their automobiles for auction online without setting foot in a used car lot.
“We’re committed to bringing real transparency to the used car market,” Bidbus co-founder and COO Ellson Chen told the Business Journal on Aug. 14. “Every offer in our auction is one our dealers will honor—no haggling, no games.”
Founded in 2022, Costa Mesa-based Bidbus provides dealers, now numbering well over 1,000, with a previously hard-to-get fresh supply of high-quality used cars sourced directly from consumers.
Participating car owners now can access competing offers for their used vehicles.
Sellers get a free quote after sharing a few details about their vehicle. An AI assistant then guides sellers through the listing process.
Before officially entering the auction, sellers determine their minimum reserve price. If bidding doesn’t reach that price, sellers aren’t obligated to sell the car.
The $3.3 million financing round was led by Mucker Capital of Venice, California, according to Bidbus.
The Bidbus market sold more than 2,600 privately-owned vehicles as of July and says it’s gaining traction with dealers across the country.
Good Reputation, Volume
“We prioritize dealers with good reputation, volume and storefront, so when sellers are dropping off, they feel more safe. We are also inviting more dealers on to the platform in the San Francisco/Bay area,” says Chen.
Auctions take place Monday, Wednesday and Friday afternoons.
“Many consumers hate selling their cars to dealerships because they associate it with being lowballed and haggled. By using Bidbus, regular people get multiple dealer bids, often beating trade-in, Carvana or CarMax prices,” Chen says.
He adds: “The used car market is crowded on the retail side, but dealer inventory remains an unsolved pain point. With the tariffs in place, this underserved market is where the real opportunity lies.”
$3M Gain Via Bidbus
As of July, he estimated that sellers have earned a collective $3 million more from selling via Bidbus instead of through other channels.
The preferred vehicles typically have lower mileage, better maintenance and reflect the buying preferences of the geographic area.
“Today our inventory sells two to three times faster than average at dealer auctions, and that is a good sign,” says Kraig Coomber, dealership owner and Bidbus CFO and co-founder.
Bidbus currently services dealerships and sellers in California, with a focus on Southern California.
The company plans to expand to dealerships in the San Francisco Bay Area in the near future and is looking at Arizona and Nevada as well.
