One thing the Internet has done to the car sales industry is (even further) blurred the line between a consumer’s view of a wholesale (trade in) price and a retail price.
When I say “blurred the line” I really mean “created an even greater divide”.
What do I mean here? Well, a consumer now has at their finger tips a proliferation of information on cars for sale, not only in their area but all over the country. Even more, this data is updated multiple times a day.
An important part of this information is the price of their car. This is where it is blurred as the car owner can easily see retail prices of the their car but rarely the wholesale or trade in price.
So when a consumer is buying a car from a car dealer and a trade in price is provided for their car, they are hit with “sticker shock” as they are conditioned on a retail price, usually the asking price and not even the sold price, further increasing the gap.
The end result is the consumer chooses to sell the car privately online and the dealer misses out on acquiring a good car to on sell.
carsales‘ Instant Offer goes a way to plugging this gap in bringing trade in cars to dealers as an option for private sellers selling privately.
Instant Offer is a great alternative for a consumer looking to sell their car quickly without the private seller process where our partner, a reputable wholesale buyer, will inspect your car to check that it matches the details submitted online and meets the offer conditions and will then offer you a wholesale price for your car (similar to the price a dealer would offer as a trade in).
While you may be offered slightly less for your car than you would selling through private channels, this is a quick and convenient method of sale which offers you next business day payment. From there the car will usually find itself for sale through the dealer network just like a trade in would.
It’s important to remember that wholesale prices (including trade in prices) will never be retail prices – they can’t be – but like retail, wholesale is negotiable and doesn’t have to be accepted.
At the end of the day it is in an auto verticals interests to ensure buyers and sellers (dealers and privates) have efficient methods to transact on cars in a retail and/wholesale environment.
Dealers and privates need to take advantage of the “network effect” a good online auto vertical brings. That is, the more sellers, the more buyers.