Australian car buying platform Carconnect enters voluntary administration

An Australian car buying platform has entered voluntary administration after 14 years of operation.

Sydney-based e-commerce business Carconnect appointed RSM Australia Partners Jonathon Colbran, Brett Lord and several other voluntary administrators on February 26.

All business activity on Carconnect has been paused as administrators look for a buyer for the online business.

The platform started operating in the early 2000s and was one of the first online platforms in Australia that connected consumers with dealers to simplify the process of buying a car.

The business has helped more than 60,000 Australians buy a car since 2012.

Administrators will contact creditors and stakeholders next week and will hold the first creditors meeting on March 10.

Mr Colbran advised Carconnect customers to be wary of scammers, and urged anyone who had paid deposits using credit cards to contact their bank to discuss their options as they may be eligible for a chargeback.

“We understand this will be very disappointing news, but we wanted to inform customers and stakeholders as soon as possible,” he said.

Mr Colbran said there was value in the business through its unique platform delivery, customer database and dealer network.

“We believe these will be attractive to the market and we intend to undertake a sale of business process,” he said.

“Our priority is to facilitate the best outcome for all stakeholders which involves realising the maximum return for Carconnect’s valuable intellectual property.

“Any interested parties are encouraged to contact our office to register their interest in the sale process.”