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Home Auto Dealers

What Does a Dealership Do with My Traded-In Car?

by Jamie Schmidt
August 30, 2023
in Auto Dealers
0

It’s easy to get sentimental about trading in an old car. If everything has gone well, most people will find themselves selling their car after at least several years of use. That’s plenty of time to amass memories, come to rely upon a vehicle that has served you well for so long, and perhaps even long enough to start calling that inanimate hunk of metal and plastic by a personal name. And after your car has served you one last time by knocking some money off the price of your next set of wheels, it’s only natural to wonder what happens to it after it has been driven away by a dealership employee. What exactly do dealerships do with your car after you’ve traded it in?

Car

Well, there are no prizes for guessing that a dealership aims to sell on the cars they acquire. The economic model is simple – by buying cars in bulk and investing in restoration resources, dealerships can sell the car for slightly more than they paid for it. It’s in a buyer’s interest to seek out dealerships that do this well, as the more efficient the process, the more profit, and savings are made. Profit and savings can be passed on to you.

The more successful and reputable dealerships are typically the resources and connections to sell on a trade-in as quickly as possible. In practice, this means links to a nationwide network of outlets and a market database to track the usual selling prices around the country – for any given make or model. When this is combined with the restoration resources and facilities necessary to make the car fully sellable, the fate of all but the most totaled of trade-ins will ultimately be a sale. If you’re looking for a dealership in California that can do all of this and more, you couldn’t do better than Cash for Cars in San Diego. This company is one of the best places to sell a used car in San Diego.

Criteria For Sale

Suppose you decide to restore your car before the sale. In that case, there’s a simple question to think about before doing so: will the amount of money I spend on this restoration exceed the extra I will make on account of the restoration having been done? In most cases, privately restoring your used car isn’t worth it. When dealerships receive a vehicle that could be sold with repair, the same question arises. Because they buy restoration materials in bulk and have on-site facilities, dealerships are far better placed to make a successful restoration than a private individual. Even still, sometimes, it just isn’t worth it.

Naturally, it is age, condition, and mileage that dictate whether a car is worth restoration, and this is what will ultimately determine the fate of your vehicle after you have sold it to a dealership. Up to around 75,000 miles and five years old are the limits within which a car is very likely to be resold. Beyond this, it all depends on the restoration resources and market reach of the dealership. And there, of course, comes the point where a car will not be resold under any circumstances.

In such cases, the car is going to a scrap auction, where it will fetch the dealer a couple of hundred bucks and ultimately be used for spare parts. It’s a sad fate, but it also means that top dealerships, like Cash for Cars in San Diego, will always make a purchase – and get you the best price in the process.

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