Selling a car to the dealer

[Tillmanator]

Hi Folks,

I'm a musician and our touring is starting to take off this year. (Woohoo!) I think I'm going to sell my Mustang and just have the van we use for gigs. The Ford dealer near me says that they will buy cars and to bring it in for them to see. We're moving to another state at the end of February and I was thinking to sell before we leave and be done with it.

Question: Does anyone know if a dealer will offer what KBB says it's worth in trade or is that number only valid if you in fact TRADE and get a new car from that dealer? Like if I'm just selling, will it be even lower? Or is selling to CarMax my best option? I don't think I want to go the private sale route or anything. Time is running out and we have a lot of gigs to do in FL before we leave and we're also moving stuff... Ugh!

[BillyJack]

Re: Selling a car to the dealer

A dealer's willingness to buy any car outright depends on their inventory needs at any given time. If I'm trading enough cars to keep my lot well stocked, I'm not interested in buying cars off the street. But if my inventory is light and I see a vehicle that I can turn quick for a reasonable profit, I'm looking. The most common used car value software used in the industry is MMR, Manheim Market Reports, a real-time summary of sales from the nationwide Manheim Auctions. Obviously, if I'm buying a car off the street, I won't pay more than I can buy the same car at auction. The KBB trade value is a fair estimate that any consumer can access, but it's not as current as auction reports and most people naturally tend to over-estimate their car's condition since they're looking through seller's eyes, not as a prospective buyer, who expects price adjustment for anything less than perfection. I might pay KBB trade-in value for an outright purchase if it's consistent with my assessment of value and it's a car I can have on the lot right away.
The only way you're gonna find out what people will truly pay is to test the market yourself and get a few offers. Be prepared to move, title in hand, as purchase offers are often fleeting. Cordially explain to the dealer that you are shopping, but you're prepared to accept the best offer immediately. The car business, like any other business, has its share of idiots who will insult your intelligence, but there's more good people out there than bad, so you just have to find a few.

Bill (30+ years in retail automotive retail)

[SVT Lightning]

Re: Selling a car to the dealer

Great response BillyJack! Gave me a better perspective on the Used Car business.