Bidbus Raises $15M to Help Car Owners Get Better Offers

Selling a used car is often frustrating. Many people choose online platforms because they are quick and convenient, but that convenience can come at a cost. Some sellers accept offers that are thousands of dollars below their vehicle’s market value, while others spend time visiting dealerships only to receive vastly different quotes.

Los Angeles-based startup Bidbus believes it has a better solution. The company has built an online marketplace where multiple dealerships compete against one another by bidding on a seller’s vehicle. According to the startup’s founders, this competitive approach helps customers receive offers that are typically $2,000 to $3,000 higher than those from online car-buying platforms like Carvana.

To expand its business beyond California and Texas, Bidbus has now secured $15 million in Series A funding. The investment round was led by Ibex Investors, with participation from Mucker Capital, FJ Labs, Motley Fool Ventures, DataPoint Capital, Walter Ventures, and Yossi Levi, widely known as the Car Dealership Guy.

A Marketplace Built Around Competition

The idea for Bidbus came from co-founder and CEO Duke Yan, who spent years buying and selling vehicles. The inspiration struck when he tried to help his mother sell her car but found dealership offers disappointingly low.

Instead of accepting those offers, Yan placed several dealers into a group chat and encouraged them to compete. To his surprise, the dealers started increasing their bids, giving his mother a much better price. That experience eventually became the foundation for Bidbus.

Yan believes the biggest challenge in the used car market is not financing but pricing transparency.

He explained that many consumers struggle to discover the true value of their trade-ins, while dealerships often have difficulty finding quality used inventory. Bidbus aims to solve both problems by connecting sellers directly with competing dealers in one marketplace.

Better Deals for Sellers and Dealers

Dealerships already rely on auctions to restock their used vehicle inventory, making Bidbus’s model a natural extension of an existing process. The platform focuses on connecting dealers with privately owned vehicles, which are often more desirable than auction inventory.

Because dealerships are willing to pay more for these cars, sellers can receive significantly higher offers even after Bidbus takes its share of the transaction.

The startup says the platform benefits both sides. Sellers maximize the value of their vehicles, while dealerships gain access to inventory they might otherwise never see.

Making Car Sales More Engaging

Yan also wants selling a car to feel less stressful and more interactive.

Drawing inspiration from stock trading apps like Robinhood and social media platforms such as TikTok, Bidbus displays live dealership bids once a vehicle is approved for auction. Dealers only have a limited number of hours to submit offers, creating a competitive environment where prices rise in real time.

The company hopes users will share screenshots and videos of these live bidding sessions, helping spread awareness of the platform through social media.

Yan said the company’s long-term vision is to make selling a vehicle as transparent and competitive as trading stocks, where market demand determines the final price instead of a single buyer.

Overcoming Early Challenges

Building the marketplace was not without obstacles.

Bidbus started as a bootstrapped company, and during its early days, one dealership accounted for a large share of purchases. According to Yan, that dealer frequently negotiated prices after winning bids and made low offers, creating a poor experience for customers.

Although removing such an important buyer was difficult, Yan said the decision ultimately strengthened the platform. Today, Bidbus has five to eight major dealerships actively purchasing vehicles while maintaining the customer experience the company wants to provide.

Investors See Nationwide Opportunity

Jeff Peters, a partner at Ibex Investors who led the funding round, said he initially passed on Bidbus during its seed stage because the business was limited to Los Angeles.

His view changed as the startup expanded into new markets, attracted more users, and signed major dealership groups, including Lithia Motors and Penske Automotive.

Peters believes the business model has strong long-term potential because marketplace companies often prove to be durable and scalable. He also highlighted the value Bidbus creates by helping consumers earn thousands more on vehicle sales while giving dealerships access to high-quality inventory.

So far, Bidbus has helped facilitate the sale of around 10,000 vehicles through its platform. With fresh funding and continued expansion, the startup aims to bring its dealership bidding model to more markets across the United States, offering sellers an easier way to secure the best possible price for their used cars.