Selling Your Car Online vs Selling to a Dealer: Pros and Cons

It seems that every modern transaction can now be done online, including selling your car. According to some reports, over one-third of all used car purchases are made online, whether through dealerships or private sales. This is part of a larger trend where nearly half of Americans sell their old cars themselves rather than going to a dealer. When you start thinking, “it’s time to sell my car,” you have many options to consider.

What is the reality of selling your car online versus selling it to a dealer, and which is best for your current vehicle? We’re here to cut through the stereotypes, assumptions, and hype to reveal the true pros and cons of each option. It’s part of our commitment to providing customers with the information they need before making a significant decision.

Selling a Car Online Privately

There are two paths to consider when it comes to online sales. The first option is a true private sale, where you post the car on an online marketplace or classifieds site, such as Craigslist or Facebook Marketplace. In this case, although the place listing the ad may charge a small fee, there is no true middleman. It’s all between you and the potential buyers.

Online Private Sale Pros

By selling the car yourself, you can set the price and often get more for it than you would by choosing a retailer or dealership. Since the car is also available to a larger pool of potential buyers, it increases the chances that someone will pay the price you want.

There is little to no pressure on you to complete the sale, making the process less stressful. You won’t feel obligated to accept a lowball offer, and talking via email or over the phone is often less confrontational.

Online Private Sale Cons

Selling a car online requires significantly more effort on your part. You need to create the listing, arrange multiple test drives, negotiate the final price, schedule delivery or pickup, and complete any paperwork. In many states, you’re also responsible for taxes on the income from the sale. It can take days or even weeks to sell your car privately online. The vehicle is taking up space in your garage or driveway all that time, and it may get in the way of your daily life.

Getting scammed is a real possibility. According to Pew Research, 73% of Americans have been the victim of an online scam. In other words, there’s a distinct possibility someone will try to skip out on paying or steal your identity. Safety is also a concern. You’ll be meeting people you don’t know when offering a test drive or finalizing a sale, and there’s the possibility they could be crooked or dangerous.

Selling a Car to an Online Retailer

The second online option is to sell your car to an online retailer, where someone purchases the car from you and then lists it for sale on their e-commerce platform. It’s best thought of as an “in between” of private online and dealership sales.

Retailer Pros

You can often get an offer for your car within minutes. Simply enter the VIN, mileage, model year, and answer a couple of other questions. They’ll provide you with an instant offer based on similar cars from reputable sources like Kelley Blue Book and NADA.

The retailer handles the legwork of selling the car to its new owner, and will often even pick it up from you. This convenience minimizes your involvement and lets you move on to bigger and better things. Reputable online retailers are far more secure and reliable than a private online sales option, giving you peace of mind.

Retailer Cons

Because the retailer almost never sees the car in person before the sale is finalized, you will likely get a “generic” offer. Even if your car is well-maintained, the retailer probably won’t take this into account, so you get less than the vehicle is worth.

Most online retailers only make a single offer with no room for negotiation, which is typically lower than what you might receive privately, allowing the retailer to make a profit on their resale. You may need to shop around to find the best possible offer. The retailer may hit you with penalties if they find problems that weren’t included in the initial appraisal, even if you weren’t aware of those problems. You’ll still need to arrange a separate time to drop off the vehicle or have the retailer pick it up, which will extend the process.

2017 Ford Focus

Selling a Car to a Dealership

Finally, we get to what some people call the “old school” method of selling your car to a local dealership. The dealership will appraise the vehicle, negotiate a final price, and then buy it from you so they can add it to their inventory.

Dealership Pros

The process is quite quick and convenient. In most cases, it takes an hour or two to appraise a car, make an offer, and complete the transaction. The dealership will also handle any paperwork related to the sale, including title transfer, etc.

While many dealerships can make a preliminary offer online, the final offer is set after inspecting the vehicle. This allows for a more personalized and fair assessment of the car’s value. You’re also more likely to get a good offer if the dealership has high demand for that type of car.

Some dealerships offer the option of giving you cash in hand or crediting the amount towards the purchase of another car, known as a trade-in. This means more flexibility when selling a vehicle. When trading a vehicle in, you get significant sales tax savings, as most states let you deduct the trade-in value from the price of the vehicle you’re purchasing before they calculate the tax amount.

Dealership Cons

Like online retailers, dealerships may offer a little less than you might make on a private sale. If a car has higher mileage or is less desirable to the dealership’s clientele, you may not receive as good an offer as you might privately. However, this is often offset by the reduced time required to complete the sale and the sales tax benefits associated with trade-ins.

A few unscrupulous dealerships may try to take advantage of the “willingness to pay” implied by a trade-in and jack up the price on a new car. Thus, you should know a dealership’s reputation before pursuing a trade-in.

Sell Your Car to North Bay Ford

If you want to sell your car using the most convenient, efficient, and secure route possible, a dealership is the best choice. The total process is usually completed in one visit, and you never have to worry about strangers or endless negotiations. By working with a dealer that has a high standing, you know you will receive a fair appraisal and offer without getting taken for a ride. Although you might be able to get a little more net money for your car online, for most sellers, it isn’t worth the added time or the concerns about scams and safety.

North Bay Ford is proud to be Santa Cruz’s highest-rated Ford dealer, and that reputation extends to people who are selling their cars. We will buy your car, regardless of make or model. The process is fast and easy, and you’ll receive an instant offer. We don’t require a trade-in, either. We’ll pay you on the spot whether you buy from us or not. Visit us today or get an initial offer using our AccuTrade tool.