I've just noticed my old car is now back for sale on Autotrader.
I sold the Rapid to a car buying service and found the process simple and "relatively" transparent.
The car was a late 2014 1.2 TSi and had covered 20k miles. The online offer was £7150, but £250 was deducted for stone chips and a further £75 went on the admin fee. This represented a downward shift / amendment of 4.5% from the on-line offer.
I'd recently been offered around £6k by a Skoda main dealer and £5.5k (by an online broker) against a new Peugeot 3008.
The deal is done in 10 minutes. I was curious to understand how the business model worked and the chap indicated most cars went to auction and they aimed for £100-200 profit per car. He mentioned they process 25000 cars per annum, so even the "admin fee" scales up to a big number. The chap I dealt with told me they buy around 85% of cars they make an offer on, assuming the sellers turns up for their appointment.
I'd used the on-line valuation aspect of such companies many times, in order to get a feeling for a cars true "market value".
The car is now back up for sale at £8295, which, given the likely auction indemnity fees (payed by the new owner) leaves a relatively thin profit margin - more than likely >£1k. After overheads / tax and over-valuing any potential part exchange it could potentially amount to a few hundred £. Not much of a return for potentially tying up significant capital.
I've read a lot of negativity around such car buying services, but my experience was generally positive. I'd tried to sell the car privately, but a few weeks with no interest (or insurance!) made up my mind to move it on. Once the decision was taken it was all concluded very quickly.
|