A used car dealership is in the business of selling cars. But these cars have to come from somewhere!
While it is more common to trade in your vehicle to reduce the cash component of your next car purchase, most dealerships are open to buying your car outright.
The car would have to be suitable for that dealership, and they have to buy it at a price that is worth their while to manage the sale process.
In this article, we will discuss why someone may sell their car to a dealership without buying a new car as part of the transaction.
Why People Sell Cars to Dealerships
People sell directly to dealerships because it is quick and easy compared to a private sale. Even if the financial outcome may not be as strong.
The private sale process can take up a lot of time, money, and the outcome is very uncertain.
A dealership sale requires no investment, and you will know the outcome immediately.
Cost
To sell a car privately you need to find a buyer!
This means paying to list the car on various platforms such as Carsales, eBay, or other sites available to the public.
There are also sites that are free to list, such as Gumtree.
You could also just put a sign in your window and park it on a busy street.
But if you want a faster outcome, then you are going to have to pay for eyeballs!
There is no cost associated with selling at the dealership. You just turn up and ask for a price for your car.
Convenience
In addition to the cost of listing online, you will also have to invest time doing the following:
- Cleaning your car so it is presentable.
- Take a series of photos showcasing the vehicle.
- Uploading the photos to create the listing.
- Describing your car and listing an asking price.
Once you are live, you will have to deal with the potential buyers, and not everyone who contacts you will be a serious buyer.
Time wasters, no-shows, and inconvenient inspection times can be a real drain on your time.
Selling at the dealership is a way to win all that time and effort back!
You’ll have an outcome within minutes.
Quick Access to Cash
In some cases, a seller may just have an urgent need for cash and their vehicle is the quickest and easiest way to liquidate an asset.
This provides certainty for the seller that they can achieve an outcome on the same day.
Do Dealerships Buy Cars Without a Trade-In?
Most dealerships will buy a car without a trade-in if it meets their requirements to stock in their yard and they can buy it at the right price.
Dealerships are in the business of selling cars, and as long as they can make the required return for it to be worthwhile, then they are likely to make an offer.
There are a few criteria that will be considered.
Vehicle Quality
A dealership must source vehicles that are of a sound mechanical standard so that they do not incur excessive cost preparing for sale, or in warranty costs after the sale.
Some car models do not perform well as they get older, and others will last forever if you look after them!
Therefore, the make and model of your car can be just as important as the KMs on the clock, and the physical condition.
Here at Gusto Auto there are certain cars that we will never buy as we know there is a higher likelihood that it will have performance issues past a certain age.
And we are thinking about our future customers!
A car with fixable issues is not a deal breaker, but it will affect the offer price.
Pricing the Vehicle
A dealership is required to get a roadworthy certificate prior to listing a vehicle for sale.
This often requires repairs and refurbishment of a used vehicle so it is of an acceptable standard.
The cost of this must be factored into any offer made by the dealership.
After all of these costs, the dealership still needs to make something out of the deal. Which is why the offer price will be less than what you could achieve through a private sale.
Aligns with Stock Needs
A dealership also needs to source vehicles that align with what their customers are looking for.
Most used car dealerships have a broad customer base and will consider most passenger vehicle categories.
However, commercial or other niche vehicles could be a different story.
Dealership Sale Process with No Trade-in
Here is a quick summary of what to expect if you want to sell your car to a dealership without buying one.
Appraisal
A representative of the dealership will conduct an initial inspection of the vehicle. This will include the exterior, interior, odometer, and condition of the vehicle.
They will also take it for a quick test drive to check for any obvious mechanical issues with the car.
After reviewing the service history and running a valuation against current market benchmarks, they will present you with an offer.
Offer
This will be presented verbally and it will be up to you to consider this.
You can always try and negotiate the price, but remember that the dealership needs to make a margin on the deal and is taking on some risk without a complete mechanical inspection.
So there may not be much wiggle room.
Process Documentation
Once a price has been agreed upon the dealership will conduct a series of checks on whether the vehicle is under finance, or if it has been involved in any serious accidents in the past.
If the vehicle is under finance, then you should declare this upfront so the security registration can be managed and funds from the sale directed accordingly.
You will also need to provide the following documentation so the transfer of ownership can be prepared:
- Vehicle registration
- Identification
- Payout letter from current lender if the car is under finance
If all checks are completed successfully, then funds can be transferred and ownership of the asset transferred.
Completion
Payment and asset transfer can be processed on the same day in most cases.
Payment is often processed via electronic transfer, ensuring funds land securely and promptly in the seller’s bank account.
Conclusion
While you may need to accept a lower selling price than you would otherwise get through a private sale, you are buying back your time and sanity by selling through a dealership.
As long as your vehicle has a reasonable resale market, then most dealerships are likely to make you an offer for a quick sale, even without you buying a new car through them.
