Automotive
How do Dealerships Sell Your Car (And Pay You More) 

How do Dealerships Sell Your Car (And Pay You More) 

Paying more than most others in Sacramento or the Northern California area, Cash for Cars in Sacramento is a dealership known for paying out more than the usual trade-in value for a used vehicle. Car, truck, or SUV, a professional car dealer can appraise your vehicle and offer a value that properly reflects what the car can realistically fetch when sold on. Yet, many sellers are surprised to learn that this figure is actually larger than what local dealerships and private buyers are willing to pay for a particular model. What is it about a dealership that guarantees not only a fast and secure sale, but also a seriously competitive price as well? 

To understand this, you need to know a bit more about what a dealership does with your car after you have traded it in. Used car dealerships rely on selling on your trade-in (often after reconditioning) to do business. Dealerships actually make more from used cars than they do from new, and a lot of this is due to the price variability of used cars and how they are sold.

A new car, for example, will have few factors influencing its price beyond the cost of manufacturing and the price which is industry standard wherever it is being sold. With used cars, the factors influencing how much it is worth are much more numerous. A dealership needs to have an efficient system of reckoning up how much a car is worth in a particular condition, how much money will need to be spent on its reconditioning, as well as any outstanding payments on the car that are transferred to the dealership at the point of sale.

Expertise

Reputable and successful car dealerships, like Cash for Cars in Sacramento, will have a system of factoring in all of these variables. But beyond that, there is also the matter of an expert appraisal if a car is going to be valued accurately. Professional car appraisers need to have years of expertise, a keen eye, and a good knowledge of the market. It is specifically this last aspect of the dealer’s job that allows dealerships like Cash for Cars in Sacramento to offer a competitive price. 

Market Reach 

The biggest reason car dealerships can often pay more than the usual trade-in value for a car is that they very rarely work alone. To be successful, dealerships need to be connected to a nationwide network, allowing them access to the markets in many places across the country. For example, if a used car is sold for more than its usual trade-in price in Sacramento, that might be because a dealership has access to a local market elsewhere in the country where that particular car is in higher demand and sells for more. 

This level of market reach (as well as access to in-depth market statistics) is the reason why dealerships can buy cars for more and still turn a profit. 

Efficiency of Vehicle Processing

Generally speaking, a dealership will not simply purchase a car and then immediately sell it on. There is quite a bit of work that goes on before that stage. And with more cars at a dealership, an efficient system of vehicle processing can be installed at the company. This means that the resources for refurbishment can be bought in bulk, money-saving deals can be struck with suppliers, and legal expertise can be employed to handle all DMV paperwork and liability issues. By working more efficiently, money can be saved – and those savings passed on to the seller.

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