It might be a great hassle to sell your car. Let’s face it: even knowing the fundamental procedures makes it seem laborious. An outdated strategy can involve hanging a “for sale” sign in the window and hoping people who pass by are intrigued. Other methods include placing online ads on Craigslist and similar directories. Even though none of these hobbies are expensive, there is no getting around the time commitment.
People are finding themselves less and less inclined to take the time to sell a car privately in this age of commercial impatience. The “We Buy Any Vehicle” business model has revolutionized how people can sell their used and outdated cars and has given those sellers new possibilities.
This blog post will focus on one case in particular: We Purchase Cars (www.webuycars.com). We’ll talk about their system, how they work, the environment in which they work, the unique benefits they offer, and the options customers have.
“We Purchase Cars” is what?
We Buy Cars is an example of a growing industry of companies that buy used cars to either sell them again or recycle them. They employ the “we buy any automobile” business strategy, inviting clients to ask about any vehicle they own and wish to sell, regardless of age or present state. The consumer can then accept or reject the company’s quote, practically a “bid” on the vehicle.
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If they agree, the company sends a representative to pick up the car and bring it to their facility, often while finishing all the necessary paperwork. Several people ponder why a company like this would purchase many used and aged automobiles. After purchasing cars from clients, these businesses primarily pursue three paths:
The vehicles are dismantled and converted into recycled metal before being sold.
The vehicles are resold to dealerships or consumers directly.
Important automotive parts are recovered and repaired before being sold to auto part suppliers.
We Buy Cars’ website doesn’t make what they do with automobiles apparent, but if they’re like their numerous rivals, they probably combine all three activities above. We Buy Cars doesn’t advertise the sale of vehicles on its primary platform, in contrast to several sizable rivals like Carmax and Carvana. Instead, they emphasize getting clients to ask questions, request quotations, and buy automobiles from them.
How does it function?
How Can a Client Use the Service?
Let’s make a simple and likely situation where someone would dial the Number and talk to someone. Since many individuals are now working from home and are less dependent on cars than they once were due to the COVID-19 pandemic, they have more options to use services like these. Then think about a family with two cars where both parents now work from home because of the epidemic, so they don’t need a car to get to work. But, because businesses could be more active, both receive only 75% of their monthly salaries.
The couple’s two children ride the bus to and from school, so this is not an issue. But, since driving to nearby facilities and significant retailers is still necessary, they choose to maintain one car and sell the other. They are liquidating a Toyota Camry vehicle. The family just finished paying off the finance on this 4-year-old vehicle. Despite this, they cannot justify the cost of fueling and insuring two cars. They take steps:
Step 1: Research
They dial the Number and speak with an agent from We Buy Cars. They tell them about the 4-year-old Toyota Camry with below-average mileage since it was mainly used for commuting. It was worth about $26,000 new, and after 4 years, it has retained 62 percent of its value, so its residual value is estimated to be $16,120 by the owner. He understands that he likely won’t get this value, but right now, they need to get rid of the car as quickly as possible.
Step 2: Quote and Confirm
After learning about the vehicle, the agent at We Buy Cars offers a price of $12,500 for it. They explain that the pricing is done according to their own “proprietary database” (more on that below). The customer is under no obligation at this point. They hear the offer and decide to think about it overnight. The next day, although the price was lower than expected, they believed the convenience factor was worth it.
Step 3: Collection and Inspection
The company plans to come to customers’ homes and pick up their cars as part of the deal. It has offices and centers all over the US. When the collection agent gets to the given address, they will examine the car to ensure the condition matches what the customer told the sales agent over the phone. These checks take little time, typically no longer than 15 minutes.
Step 4: Payment and Paperwork
Suppose the Camry passed muster, and the collection agent found everything in order. They immediately hand the couple a check for $12,500, which they can deposit in the bank and use as needed. They handle any required paperwork regarding titles, smog certificates, and other DMV documents. At this point, the couple begins to see that the convenience factor is more than just speed but not having to deal with any bureaucracy simultaneously.
And that’s how the system works, in a nutshell.
Will they buy any cars?
They don’t list any limiting criteria, such as a minimum model year or standard condition, to give their customers a quote. Some similar platforms might stipulate that the cars must be from 2000 onward or at least in working order. With this company, your car could be a heap of ruin that doesn’t start, and they’d still make you an offer to take the scrap metal off your hands. Their website clarifies that they accept cars of all makes, years, and conditions, including classic models.
They also make no secret that they prefer newer and lower-mileage cars, which strongly suggests that they sell them to others after acquiring them.
How much do they pay?
The website doesn’t give you any firm indication of price since every car might be slightly different according to its exact circumstances. Their website only reveals that they use a “proprietary database” for valuations. These are similar to commercial Black Book valuations, which are not openly available to regular consumers in the same way that Kelley Blue Book valuations are. They are valuations set for retailers and industry professionals so that they can maximize their margins at the retail level.
The general rules of thumb are as follows:
For scrap or junk cars, expect at most $300-400. This is about as good as it gets when dealing with pure junk that doesn’t start, is rusting, and is only suitable for salvaging the metal for recycling. It’s rare for any car to be valued at anything above that, so don’t plan to get more.
Expect the price to be lower than if you sell privately. The only way to get the Kelley Blue Book value, or anything close to that, is to sell it directly to a buyer using Craigslist or similar advertising. Selling via these online platforms comes with a premium covering the convenience, collection, paperwork, and overall transaction speed. You might close the deal within 24 hours of making that initial inquiry, which comes at a cost.
There is no negotiation. Finally, when it comes to these platforms, there’s no playing hardball or negotiating. They generally operate on a model of offering the absolute best price they can according to that aforementioned proprietary database. Their offer will be final, so trying to push them higher is no point.
Conclusion:
These types of companies have their fans, and they also have their detractors. All it says is that a platform like We Buy Cars is designed to only work for some. There are some circumstances in which a private sale is more appropriate, i.e., when you want to maximize the price, have plenty of time to make the sale, and are familiar with the procedures and don’t mind undertaking them. In other situations, i.e., the opposite of what we just described, they present a tempting alternative.
It has to come down to the individual buyer to decide what will work best for them.
