It's a secret - Advice on selling used car to trader - britbat

Tried this enquiry on MoneySavingExpert forums but mostly got snorts of derision at the very prospect of selling a used car to a dealer (despite clearly stating why that's what I want to do). So I thought I'd try here.

Due to a change of job it's no longer necessary for me to run a car so I'm looking to get rid of mine. Won't be specific but it's a small 1.0 hatchback, 02 plate, around 45k on the clock. First car. I'm sure you can guess. In good condition, always starts, sounds nice when running, only a couple of minor cosmetic flaws.

For a variety of reasons - mostly to avoid the inconvenience of having to deal with private buyers, and potential liabilty if anything goes wrong following sale - I don't want to sell privately.

I live in a city near a wide range of dealers, plenty of spare time during the day, and though I know I'll get several hundred £s less than selling privately, I'm OK with that. The car was a gift so whatever I get for it is profit, and the big saving for me will be in not having to pay the running costs. Releasing the capital in the car is, frankly, a bonus.

Two queries: firstly, any advice on what to do to car to make it as attractive as possible to dealers, and any tips on negotiations? Obviously I will give the car a good clean inside and out but is it worth replacing scuffed hubcaps, or do dealers not give a toss about that sort of thing.

Secondly, on pricing: what % should I be knocking off Parkers/Glass's price? I know better than to stroll onto the forecourt and demand the Parkers price, I'm just looking for something to guide me. (Current Parkers trade sell price for same car with 80k = £1,600 - how much to knock off for overheads and margin?)

Only advice I got at MSE was a) aim to sell it for Parkers trade-in price (minus reductions for flaws) and b) if you're going to a dealer, you might as well go to WeBuyAnyCar. Bit sceptical about that second one.

Thanks for reading...

It's a secret - Advice on selling used car to trader - NowWheels

You have said very clearly that you don't want a private sale, but I don't find that your reasoning makes sense to me.

At that end of the market, I'd have thought that a private sale would probably fairly easy.The car you are selling is probably in a very low insurance group, so it will be cheap to insure as a first car for a youngster. That type of car is usually in strong demand, and since you aren't sticky on price I'd guess you'll sell it quickly and easily.

However, if you take it to a dealer, that dealer has to cover all his overheads and (crucially) will have warranty liabilities on it. It takes as much showroom space and as much time to sell a car for £1,500 as to sell one for £5,000, so the dealer's margin forms a high proportion of the sale price. Worrying about how to present the car to a dealer seems odd, when by going to the dealer you are already throwing away lots of money.

AFAIK, you don't need to worry about liability arising from a private sale. Just sell it "as seen and inspected", and the buyer has no room complaint.

It's a secret - Advice on selling used car to trader - Carl2

Auction. Just mention" could I have a decent slot "or you may find it coming through when most people have gone home. If you have got the time its best to be there otherwise if it is last one through and you get a phone call saying you have only had a silly low offer you will be none the wiser and local dealer / friend of auction staff gets a bargain. Obviously I made up the last bit as it would never happen in reality (disclaimer).

It's a secret - Advice on selling used car to trader - britbat

Have had a look at possible auctioneers in my area and auction begins to look like the best compromise. Will probably spend a day checking out dealers and WBAC to get an idea of a reserve price, then see what happens at auction. If that fails then can go private.

So auction looks like the best bet - but I have to say there is a fascinating lack of consensus in advice on this matter (not just here but everywhere). Very curious to see how this all turns out.

It's a secret - Advice on selling used car to trader - kithmo

When a dealer buys a car, or accepts a trade in for resale, I would expect that he would factor in the potential costs of warranty claims & profit. For an unknown (to him) vehicle he would probably want £1000-£1500 for that alone, rendering any car in your price range worthless to him, so I'd be suprised if any dealer would want to buy your car, unless it was for £200-£300. Ask for a quote off webyanycar and knock off 20% for a potential valuation. I reckon the auction is your best bet.

It's a secret - Advice on selling used car to trader - Carl2

A dealer will usually stop bidding when the price is in the region of book price where as joe public all excited to buy a car are often quite happy to take over at this point. Public like a bit of polish since they can't really check the car its all they can really judge it on.

It's a secret - Advice on selling used car to trader - Collos25
I cannot believe selling an old banger can cause so many problems.
It's a secret - Advice on selling used car to trader - sandy56

The easiest way to sell it it is- clean it, get rif of all the rubbish inside and sell it at auction.

It's a secret - Advice on selling used car to trader - hatman

I'd have thought eBay the best way to sell an older car. You can make it very clear that there are no comebacks.

BCA Sure Sell (as someone quite rightly pointed out) isn't easy as nearly all cars I have heard of bought that way had major faults. It's actually a pretty clever way of selling a car with a big problem such as needing a new gearbox! What would you rather do? Spend £3k on a new gearbox? Put it on eBay or Auto Trader declaring a gearbox fault and sell it for thousands less or stick it in an auction and get the same money as you would if there wasn't a fault!

Personally speaking, I think auctions should describe any major faults in the cars they sell - that way you can decide a fair price to bid. I have known people pay over the odds for cars at auction only to find they need to spend thousands on them to get them roadworthy.

Auctions are a bit of a law onto themselves as unlike every one else who sells vehicles, they can sell cars totally sold as seen with no comeback.

I wonder if eventually the law will be changed so even auctions have to describe major faults, it would certainly make life a lot easier when buying at auction! The other frustrating thing at auction is that many use Experian when carrying out HPi style checks. So if the car you buy comes up all clear on Experian it may still have a mileage discrepancy on HPi or outstanding finance etc etc! Trying to prove a mileage discrepancy is incorrect with HPi is a total nightmare and if you go back to the auction they say the discrepancy must be an admin error! The big auctions have a monopoly so can pretty much operate how they see fit.

There was a Daily Mirror article recently saying that We Buy Any Car staff get a £100 a week basic salary if they pay the agreed price on the website valuation. They earn commission for knocking the price down, moaning about things like the tyres etc which of course wouldn't even effect the value they get when the car goes to auction!

I think it's fair to say that any company with the finances to constantly advertise on TV and sponsor Motoring on Dave (i.e. repeats of Top Gear) aren't exactly a charity. It just seems a little harsh that money from very vulnerable people who desperately need cash for their cars at least partially ends up in the pockets of the Top Gear trio who aren't exactly strapped for cash! RH's £750k Morrison's ad springs to mind! Nice work if you can get it!

It's a secret - Advice on selling used car to trader - pd

It just seems a little harsh that money from very vulnerable people who desperately need cash for their cars at least partially ends up in the pockets of the Top Gear trio who aren't exactly strapped for cash! RH's £750k Morrison's ad springs to mind! Nice work if you can get it!

You obviously buy at auction regularly so you must have seen the typical cars WBAC are buying in? Many very, very tatty, no history, often significant faults and they often go cheap. Clearly unloved and unlooked after cars. These people are selling to WBAC because no one else will buy their cars because they have not looked after it. I have no sympathy for them.
It's a secret - Advice on selling used car to trader - britbat

Your advice would suggest trying to find an auction with a good attendance by public (at weekends perhaps) rather than a midweek one mostly attended by dealers - recommendations anyone? Based in Devon but can travel within reason.

It's a secret - Advice on selling used car to trader - pd

If your car is a decent one with no major faults selling at auction should be a last resort. For private sellers it is to get rid of the duffers and the unsaleable - not the place top get rid of anything moderately decent.

You will be very, very lucky to get book trade at auction selling as a private seller and on top of that the commission levels are horrendous (8% + VAT in some cases).

Many cars in, for example, BCA's "Select" or "SureSell" sections fail to atract any bids at all and those which do are frequently thousands below "book" because buyers assume from the outset that they have to be duffers to be there.

As a first attempt, if you can't be bothered with normal Autotrader avenues, bung it on ebay with no reserve, some nice photos and an honest description. You may get timewasters and the winning bidder might not turn up but for £7 it is worth a pop and whatever it gets will be more than you'd nett at auciton.

It's a secret - Advice on selling used car to trader - Roly93
bung it on ebay with no reserve.

What !!! So you would have the guy sell it for 99p !!

Edited by Roly93 on 20/06/2010 at 22:31

It's a secret - Advice on selling used car to trader - pd
bung it on ebay with no reserve.

What !!! So you would have the guy sell it for 99p !!

Umm...but it's not going to go for 99p is it?

I can guarentee that any reasonably described car will go for more on ebay, 99p start no reserve, then you'll get in a general/select/suresell or whatever section at auction.

It's a secret - Advice on selling used car to trader - Roly93

This is all slightly bonkers if I may say so ! Selling a car privately isn't the Spanish inquisition. As long as the car runs and drives okay and you dont know of any serious problems, and you make the buyer sign a paper saying sold as seen, whats the problem ?

I find it hard toy belive that anyone would sacrifice huge wads of cash by allowing a dealer to take a motor of their hands. As for the market, now the weather is nicer, there is a shortage of semi-decent small modest run-arounds, I just sold my wifes old Focus in 6 hours of advertsing in the autotrader online. I didnt sell it cheap either, it was just a nice clean car.

On an 02 plate car no normal person expects there not to be the odd mark or scuff, so I would urge you to give it a go, all you need is access to the internet, a phone and a credit card.

It's a secret - Advice on selling used car to trader - britbat

Just thought I'd give you all an update on this.

Cleaned the car up, took it to the auction a week or so ago. Set the reserve at just over the average of the three trade-in prices given on the CAP valuation.

It went for exactly the reserve, after commission it will get me almost the exact average of the CAP trade-in prices.

So, local auction worked nicely for me and while I could maybe have got a bit more privately, that was by no means guaranteed - and would definitely have been more work than a trip to the carwash, interior vacuuming, and a quick drive round to the auction. And the difference was only about £150 anyway.

It's a secret - Advice on selling used car to trader - Collos25

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