CHANGECARS founder Michael Pashut.
Image: Supplied.
As South Africa online vehicle marketplace becomes increasingly competitive, CHANGECARS founder Michael Pashut is clear about his ambitions.
The 53 year old entrepreneur, who launched the business five years ago, says the platform was built to challenge established players such as Auto Trader and Cars.co.za, but with a distinct approach focused on dealership quality and consumer trust.
CHANGECARS operates as an aggregator website, competing directly with major online vehicle platforms. However, Pashut says the key differentiator lies in who is allowed to advertise.
Reflecting on the origins of the business, Pashut said a clear gap in the market prompted him to act.
"When South Africans want to buy a car, many may spot a vehicle that falls in their budget, but most of the time, a lingering worry may keep them from making the purchase. In South Africa there are countless stories about a customer purchasing a vehicle, and then having a bad experience with the dealership they buy the vehicle from. The aim of CHANGECARS was to build an online platform that does not allow B grade dealerships to advertise,” he explained, describing the opportunity he identified in South Africa vehicle ownership landscape.
From the outset, he believed that trust would be the defining factor in the company's success.
“Proudly we can say from day one, as a trustworthy platform is always going to win the day,” Pashut told Business Report.
With 30 years in the motor industry, he believes his experience provided the foundation needed to build a credible and sustainable business.
“Thirty years in the industry gave me all the experience and real world knowledge needed,” he said.
At the heart of CHANGECARS model is a streamlined consumer journey. Pashut said the company focuses on eliminating uncertainty for buyers.
“We eliminate one vital component. On our site you only choose the car as all dealerships are high quality,” he said.
By curating dealerships and maintaining quality standards, CHANGECARS aims to remove the burden on consumers to evaluate the credibility of sellers.
The core customer, according to Pashut, is broad.
He added that since launch, the brand has resonated strongly with buyers seeking peace of mind.
Operating in a challenging economic climate has shaped the company growth strategy. Pashut said perception and brand trust have been central to its traction.
“The public want a brand they can relate to and CHANGECARS is seen as trustworthy,” he said.
While revenue growth remains important, he measures success differently.
“The way the brand is perceived and I am proud to say in this regard we have succeeded,” Pashut added.
Partnerships have also been critical to scaling the platform.
“Growing and forging partnerships will be vital and we seek out big name players like banks and insurers,” he said, underscoring the importance of collaboration in a capital intensive industry.
The businessman said that technology is vital to the business.
"Back in the day, if you wanted to buy a vehicle you would go visit dealerships or to a park and sell facility. While people still do this, the way technology has evolved, people can now do a safe search on our website, where only trusted dealerships are allowed to advertise their stock, giving a shopper a smooth and easy experience, with the ability to filter the exact product they are looking for, in terms of vehicle make and model, mileage, price range, etc," Pashut said.
He added that he is always looking at new ways to improve the user experience for people making use of his website, with hopes for a smart phone app in the future as well.
Pashut also hosts a popular podcast, where hot topics from the motor industry in South Africa is discussed.
Looking ahead, Pashut believes shifts in consumer behaviour will reshape traditional vehicle ownership models.
"The industry is ever evolving, i believe the rental model will see a large uptick in the coming years in this country. Alternative access models will become more mainstream," Pashut told Business Report.
Over the next 12 to 24 months, his growth priorities are ambitious.
“We hope to take the second spot away from Cars.co.za and compete with Auto Trader,” Pashut said.
For entrepreneurs hoping to disrupt established industries, he offered straightforward advice.
“Never compete head on with your competitors always do it differently,” he added.
As CHANGECARS continues to position itself as a trusted online marketplace, Pashut remains confident that a focus on quality dealerships and brand credibility will allow it to gain ground in a highly competitive sector.
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