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What Happens to a Car after a Dealership Buys it?

What Happens to a Car after a Dealership Buys it?

Have you sold your car to a dealership recently? Traded it in against a new model and wondered what happens to a car after the dealership buys it?


Many of us will sell our car to a dealership and move on with our lives without looking back. Occasionally though, someone asks us what we will do with the car we just bought from them.


What happens to a car after a dealership buys it depends entirely on the car and the used car market at the time.


Typically, it’s one of three things. We’ll send it to auction, sell it to a car wholesaler or sell it ourselves.


The recent shortages in the automotive industry means that right now, we are more likely to sell the used car at one of our dealerships rather than pass it on, but who knows how the market will change in the future?


Used car auctions


Dealerships would often send trade ins or used cars to auction. If it was a non-brand car or didn’t fit the target market of the dealership, we would send the car to a used car auction and sell it there.


Non-brand means a manufacturer other than the one the dealership sells. So a Ford dealership would send non-Ford cars to auction as they don’t have the target market for them.


Sending to auction was a reason dealerships couldn’t pay market rates. We would make a loss on a car sent to auction and we need to minimize that as much as possible.


Used car wholesalers


There are companies out there that buy cars in bulk from dealerships or fleet companies. It’s an alternative to sending the car to auction and would work when we couldn’t sell the car ourselves or if we didn’t think we would get a good price at auction.


Wholesalers aren’t used as much as auctions but they are a way for a dealership to offload a number of used cars at once.


The wholesaler would then sell them to smaller car dealers across the country to make their money back.


Selling quality used cars ourselves


The other option, and currently the most popular is to sell the car ourselves. The used car market is hotter than ever and has completely changed the landscape of car sales.


The majority of trade ins or used cars we bought would be sent to auction. Now we send very few as we have a strong demand for good quality cars across our dealerships.


If you sell your car to a dealership now, chances are in a week or two you’ll see it on one of our forecourts.


We will take the car, recondition it, perform exhaustive safety and mechanical checks and prepare it for resale.


We’ll also give it a full valet, full service and make sure everything is 100% ready for the new owner.


So, if you’re planning to upgrade your car anytime soon, sell your old car to a dealership. We’re offering higher prices than ever before so you could be surprised at just how much you could make!


We will use all our skill and experience to deliver the lowest possible auto loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help.


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Categories: sell your car