Damian Lee’s startup, 1Wheel, gears up to take the hassles out of how we buy and sell our cars.
The process of selling your car has not changed much in 50 years despite the advent of the internet, social media and apps.
The options seem to be between receiving an almost insultingly low trade-in price for your old car or having to try and sell it yourself on the open market.
This latter option means handling the preparation of the vehicle, the photography, advertising copy, posting on various websites, then dealing with (literal) tyre kickers, inquiries, viewings, test drives, negotiation, money transfer and documentation.
This fills most of us with dread.
If we can use an agent to sell our home, can’t we do something similar with our prized automotive possession?
Revolutions
Cottesloe-based startup founder Damian Lee is no stranger to the automotive industry.
Over a decade, he worked in front-end sales and business management for some of the best-known car brands.
But when he returned to Perth after a stint in New York during the pandemic, he saw an industry still stuck in its old ways.
“Five years later, and nothing had really changed,” he told Business News.
“It seemed archaic.”
Startup founders tend to be people who cannot walk past a problem. While the rest of us may not have noticed it, or cannot think of a solution, our budding entrepreneur must do something about it.
Mr Lee immersed himself in startup research and used a no-code platform to develop his first viable product.
Launched in March 2024, 1Wheel is a platform that acts as an end-to-end concierge for private car sellers.
“We’ve built a product to help owners sell their cars privately without the usual hassles,” Mr Lee said.
As a seller, you simply enter your vehicle registration number, click a few buttons and it’s listed.
If it does not sell on the site, 1Wheel can source a trade-in deal for you, for free, as a worst-case scenario.
By leveraging artificial intelligence and listing cars across all major automotive websites, 1Wheel aims to maximise visibility.
The car stays with the seller, who can remain hands-off as 1Wheel handles sales inquiries, schedules viewings, negotiates offers and manages all documentation and administrative tasks for a 3 per cent fee.
Even test drives are coordinated, with 1Wheel staff facilitating a process akin to a real estate home open.
Buyers have access to added services such as roadside assistance, warranty and financing.
According to Mr Lee, the latter two are already proving to be top sellers.
He also connects with every buyer and seller on the site, personally. This is where he receives the best feedback, for further improvements for the site.
“It’s a fantastic feedback loop,” he said. “And so, we are adding new features all the time.”
Inside a year, the business had become cash-flow positive, Mr Lee said.
The team is lean.
Mr Lee serves as chief executive and manages the sales and finance, while chief technology officer Franco Sioquim, based in Queensland, oversees the technical side.
Early funding came from Mr Lee’s investment of $20,000 and a pre-seed round of $200,000 from the RBO Group.
A seed round was planned for later this year, although Mr Lee’s focus on organic growth might render this unnecessary.
1Wheel currently only operates in Western Australia and aims to reach 3 per cent of the 27,000 monthly private car listings before going east, where more than three-quarters of Australia’s registered vehicles are located.
“By the end of 2025, we’d like to be operating in other states,” he said.
Much of 1Wheel’s momentum stems from Mr Lee’s commitment to learning and growth.
He has immersed himself the startup ecosystem, devouring Y Combinator content, listening to podcasts, and completing the Startmate LaunchClub program.
Networking through these channels has been invaluable, as has mentorship from his investor and personal connections.
Mr Lee’s vision is to re-imagine the way Australians buy and sell cars.
According to him, and many others, this is long overdue.
• Charlie Gunningham has spent 25 years in WA’s startup sector, is on the WA government’s Innovation Advisory Board and is chair of Startup WA.
