The average age of a car on the road today is 13, reaching an all-time high in 2022 and up 30% in the last ten years. Accelerated by the pandemic, not only are used car sales up but consumers are keeping their cars for longer and driving even more miles in a given year. As vehicles age and experience more wear and tear, used cars typically have higher maintenance needs and outlive their OEM warranties. Keeping your car on the road is increasingly important as it is the primary way most Americans commute to work and school. Making matters worse, the typical American driver does not have enough savings to cover surprise auto repair bills.
The opportunity to help alleviate these problems led us to our recent investment in Carmacare. Carmacare is building a new subscription car care product for consumers that makes car repairs more affordable and convenient.
Carmacare’s product is a personalized, month to month subscription product that offers consumers risk based pricing for repairs for used vehicles. In less than 90 seconds, consumers can get a free, transparent quote for their car and get the peace of mind that comes with predictable car maintenance costs for as little as $25/month.
We are excited to co-lead this seed round with Inspired Capital and Revelry Venture Partners. We are also excited to work with Jamie Ahern and Jon Palan, Carmacare’s founders. I first met Jon in 2015 when he was raising his seed round for AutoFi, and met Jamie through Mark Batsiyan at Inspired Capital, who worked with him at Learnvest. Jamie and Jon are bringing their experience as senior fintech leaders from Kin Insurance, AutoFi, Learnvest and Lending Club to this large, underserved and opaque market.
They are moving incredibly fast and you can learn more about the roles they are filling here.