When you decide it is time to sell or trade your current vehicle, you have two options: sell it privately or sell/trade it to a dealer. Selling privately may allow you to set a higher price, but you will be responsible for presenting the vehicle, advertising it, and communicating with potential buyers, which could mean having strangers visit your home. If you prefer to avoid these responsibilities, you can choose to sell or trade your vehicle at a dealership.
When preparing to sell or trade a vehicle at a dealership, it’s important for the seller to assess its retail and wholesale value using tools like CarFax or Kelley Blue Book (KBB). Enter the VIN, make, model, year, mileage, and condition to obtain a national estimated value. It's crucial to get both the retail value, which is typically what the vehicle is listed for on dealership lots, and the wholesale value, which is what dealers pay for inventory. Often, these figures represent national averages and may not reflect local market conditions. To better understand the vehicle's market value in your area, conduct a simple online search for similar vehicles for sale at local dealerships.
If you wish only to sell, we suggest you inquire with an on-brand dealership through the dealer’s website. If you are trying to sell a Jeep, contact a Jeep dealership. At Graff Rockford, we purchase all makes and models of vehicles every day; however, we like to purchase our own brands—Chrysler, Dodge, Jeep and Ram—because we have the computer equipment available to diagnose problems, the certified mechanics to make repairs, and our customers expect to see our brands on our lot.
Why do dealers offer less than the prices seen online for similar vehicles? Because buying used cars involves risks. Each month, some great vehicles go unsold. When this happens, dealers take them to auction, where buyers pay wholesale prices, and dealers incur all the costs associated with the vehicle. Therefore, the amount we offer you for your vehicle is just the starting point. Additional costs include service inspections, repairs, cleaning, inventory management, sales tools and personnel, advertising, and the general expenses of running a business.
When you are ready to sell or trade your vehicle, the very best way to go about it is to visit the dealership for an in-person appraisal. Yes, you can get an offer online, but every offer you receive online is contingent on how the vehicle appraises at an in-person inspection. Every single one. Even the sites that claim their offer is “guaranteed” will have an inspection caveat somewhere in the fine print. Some sources will even inflate the online offer, thinking that once you are in the door, you won’t want the hassle of leaving and selling elsewhere. How can you protect yourself from these shady sales practices? Know the retail and wholesale value of your vehicle, but we feel the best way is to develop a relationship with a local dealership.
When you come in for an appraisal, an inventory specialist will assess your vehicle by completing a physical inspection which may include taking it for a short test-drive. We will research the retail and wholesale value as well as what it would cost us to buy your exact vehicle at the auction at that moment. We would always rather buy from a person who is sitting across from us than from an auction, so our offer will come in above wholesale—what we could buy it for at auction—and below retail—what we will sell it for after expenses. We realize your vehicle is of personal value to you and will do our best to offer a fair price.
What factors can increase the chances of receiving a higher offer? First, trading in a vehicle while purchasing one from the dealership’s inventory. When a customer buys from a dealer’s inventory, the dealership is motivated to make the sale and may have some flexibility in pricing. The second factor that will lead to a higher trade-in offer from a dealership is if the customer has a relationship with the dealership—whether that means the customer purchased there before or uses the dealership’s service department for maintenance and/or repairs. If we know a vehicle was maintained by our certified mechanics according to manufacturer standards, we are likely to have trust that the vehicle is reliable and good for our lot.
When it’s time to trade-in your vehicle for a new one—arm yourself with information by knowing the retail, wholesale, and market value of your vehicle—we invite you to stop by our store to get your vehicle appraised. We pride ourselves on setting a comfortable environment for you to shop and talk about your needs and wants and have appraisers available during our normal business hours: Monday from 9am to 7pm; Tuesday through Friday 9am to 6pm, and Saturday from 9am to 2pm.
Image via Graff CDJR Rockford
