Selling your car to a car dealer: pros and cons

By Stuart Johnston

Selling your car to a dealer is a good option if you need a speedy transaction. But like any transaction of this nature,  knowledge and preparation on your part will work in your favour.

Selling a car is a lot more difficult than buying a car. When you are in the market to buy a car, the world is your oyster. But when it comes to selling on a car, it might sometimes seem as if that car-buying universe out there resembles a much less friendly landscape.

When the times comes to sell your car, there are generally three options. You can sell your car privately, sell to a dealer for a cash payment, or trade your car in through a dealer on a different model.

So, what are the pros of selling to a dealer?

The pros of selling your car to a dealer centre on the fact that you will be dealing with people whose business is buying and selling cars. This means that you won’t have to explain all the nitty-gritties to a dealer that you might have to when negotiating with a private buyer.

Dealers will manage the paperwork

Dealers are geared up to manage the paperwork transactions that make selling a car  so time-consuming. They will tell you the exact procedures to follow when it comes to settling any outstanding finance contracts pertaining to the car, the NATIS documents that need to be filled in regarding change of ownership, and whether or not you need to have your car taken for a roadworthy test prior to sale (in the case of a sale to a dealership, they will take care of this in 99 cases out of 100, because that’s what they do, day-in, day out).

You won’t have to advertise your car for sale

Advertising your car for sale as a private individual can put you at risk to crooks, because you  have no really effective way of vetting who you are dealing with. Dealerships  have a reputation to uphold, so that they can stay in business. So selling your car to a dealer with an established business is generally risk-free.

The transaction with a dealer will save you time

One of the biggest benefit to you, by selling your car to a dealer, is that you won’t have to spend time setting up viewing appointments.

You will receive payment for your car immediately

Dealerships have access to instant finance, so once you have agreed a price with a dealer, delivered the car and processed the paperwork, the money will be paid into your bank account straight away.

The cons of selling to a dealer

The biggest negative when it comes to selling your car to a dealer is that you will generally realise a lower price than you would if you were to sell the car privately.

A dealer is not buying your car for sentimental reasons, or for personal use. The idea for the dealer is to buy low and sell high. The dealer takes the risk of buying your car when it may not be easy to sell-on at a profit. For this reason, he may have to invest extra money in any repairs that are necessary. So, for all these reasons, a dealer will not offer you a price as high as that which  you could achieve by selling your car yourself.

How to achieve the best price from a dealer

There is a saying that the easiest person to sell something to is another salesman. So when selling your car to a dealer, realise that you, too are a salesman.

*Research the car’s current retail value by logging onto AutoTrader and checking what similar models are selling for. Many dealers use only AutoTrader to get an idea of what a car’s current value is, because AutoTrader has such a wide reach in the South African market.

*Present  your car properly by taking it for a professional valet before you show it to a dealer. Experts agree that any money you spend on a valet will be recouped in the selling price

*Repair any obvious faults on the car. Visual (bodywork) faults are the most important, as they constitute first impressions (which, as we have all been told by our mothers, or grandmothers, are lasting impressions)

*Take it to at least three dealerships before agreeing on a sale, so that you ensure you are at least being offered a reasonable “trade” price.