Exciting articles several times a month
3 February 2017
A list of items that could be acquired for funds collected by means of crowdfunding is increasingly growing. Recent observations indicate there is also a great potential for crowdfunding the new things, and car purchase is yet another project for social financing. Fundraisers can get as much as they need for buying a new or used car once they justify why the crowd should help them. Сrowdfunding platforms may offer their programs to assist those seeking to drive their own vehicle rather than traveling with community transport. We take a shot to look closer at how crowdfunding communities can lend support in buying a car, if any.
By far not every platform is dedicated to raising funds for personal needs like covering education fees, travelling, or buying cars, as in our case, especially considering that crowdfunding is donation-based. Some of them are meant for financing specific business ideas and providing support to start-ups. However, there are crowdfunding websites that give the opportunity of collecting some money to buy a car after all.
It claims to be the biggest fundraising platform in the world with 25 million donors who have contributed over 3 billion US dollars by now. It was incorporated in 2010 and today it has a big variety of directions for crowdfunding, which is not limited to supporting social events or start-ups only. People there may ask for funding their personal whims, buying a car, in particular. As for rates, the rate varies from country to country; nevertheless, they take under 8% of the raised cash.
Convincing people to donate money to buy a car is not an easy task. Browsing the GoFundMe website reveals that too many people fail to collect any funds at all. The reason is that donors tend to support people who need a car for some socially important goals or who have any kind of disease. Still, GoFundMe has another strong point – it does not set fundraising deadlines, which undoubtedly plays a key role in likewise cases when people need more time to collect a large amount of money to buy some wheels. The only big restraint is that the platform is available for citizens of 14 countries as a matter of fact.
INDIEGOGO is another giant in the crowdsourcing industry. It was founded in 2008. A range of services delivered by INDIEGOGO is rather extensive as they support all types of fundraising – equity-based, reward-based and donation-based crowdfunding. Though they more tend to be a platform that is an excellent place for good ideas to become true, they have separate website totally dedicated to non-profit and social causes like Generosity.com that operates in 223 countries worldwide.
Campaigners and contributors meet each other to lend a helping hand. The strongest point of Generosity.com it has no fees for connecting people. When it comes to buying a car, similar to GoFundMe, chances of chasers who need a car for social purposes or disabled applicants are higher than of those who just gather funds for an ordinary car. For instance, on Generosity it happens that people are more willing to help buying ambulance cars for the poor or distant locations in the far corners of the world. On the other hand, announcements like “Help me buy a car” or “We have not enough money to buy a car for our family” gain almost no popularity.
Dodge and Hyundai
Another example that crowdfunding is shifting into the car sponsoring plane is appearance of carmakers on stage, which proves our opinion is not wrong. In a move to motivate the interest of the younger generations in the cars they produce, both companies has come to lead the niche by initiating their own crowdfunding campaigns aimed to increase car selling. The eventual results of their programs may have had different effects, though both companies allege being successful.
Dodge offered very interesting initiative on its online platform Dart Registry, specially created for this purpose. The idea is that the registered users can invite their family members or friends to buy out one part of the Dart – Dodge’s compact car. One friend can donate for a wheel and another friend can help buying another big or small part of it. In the end, users can “assemble” a completely new car owing to crowdfunding. Good or bad, they sold two cars under this campaign. As the company itself is interested in the matter and encouraging sales, registrants do not pay any fees.
Unlike its American peer, South Korea-based Hyundai can boast 1600 cars sold using crowdfunding platform of their partner BoostUp (former Motozuma.com). It works as follows: A client who wishes to buy a Hyundai car registers with BoostUp and starts saving money through the platform. When savings of the potential car buyer reach, say, $500 Hyundai doubles it up to $1000 and then issues a special certificate confirming this amount of funds, which will be used when the client visits the Hyundai’s dealer. Fundraisers have to pay nothing for using the platform as it receives their earnings from the companies the products of which they recommend to purchase.
In summary, potential of car crowdfunding happens in some cases, particularly, it brings hope to make things possible. Raising funds to buy a car is more likely once a person has a clear, good intention. Several platforms offer such opportunity. Yet, in general, people tend to help applicants in real need or incapable of buying pricy goods due to their physical or mental condition rather than those who just want to get a new vehicle, the price of which they expect to be paid by others. Although, based on individual occasion, good explanation of their intention may have a positive effect. Rates may vary from site to site, some offering their services free of charge and some deriving their benefit by deducting some interest from the raised funds.
Exciting articles several times a month