with a wholesale dealer license you can sell your car directly to auto dealers

Tips For Selling Your Car to an Auto Dealership

The thought of selling your car to an auto dealership might seem intimidating, but it’s actually not that difficult as long as you know what you’re doing. 

That’s why US Dealer Licensing put together this blog to teach you all the tips and strategies necessary to get rid of your car in no time flat!

Understand the process

If you plan on selling your car directly to a dealer, there are a few things you need to be aware of. 

First, many dealerships will refuse vehicles with salvage titles. There is no way around that and if your title is branded with a salvage code, then you’ll have little choice but to look elsewhere (like Craigslist). 

Additionally, some dealers will only take cars from individuals with wholesale dealer licenses. Each state has different rules regarding auto sales and most states won’t require you to apply for a license unless you plan on doing more than 3 or 4 deals within a year; however, it can still be worth checking into just in case. 

It would also be worthwhile to familiarize yourself with business tax requirements in your state—some states charge annual fees based on vehicle sales volume, so consult with someone at the IRS before making any big decisions!

Fix any issues before selling 

always fix car issues before selling to an auto dealer

You should always make sure your car is in perfect working order before you try to sell it. This means having a mechanic you trust to inspect your vehicle and give it a clean bill of health. 

If there are any issues that could become a big problem down the road, be proactive and get them fixed beforehand. Not only will buyers respect your honesty, but they’ll also likely pay more if they know they’re getting a great car with new parts! 

Finally, it’s wise to research similar vehicles online to see what prices are being offered by dealerships. Be aware though: dealerships buy vehicles at wholesale rates; so don’t expect to receive full retail value when selling your own vehicle.

Understand value

When you’re considering selling your car, make sure you understand its value. As a general rule of thumb, if your car is worth less than $2,000 it will be hard to sell on your own; you might be better off trading it in. 

Generally speaking, buyers want cars that are cheaper and easier to repair. The closer your car is to these two points, the easier time you’ll have finding a buyer (and at a good price).

Haggle effectively

To ensure that you get as much money as possible for your car, haggle with a used car dealer who is willing to pay more than trade-in value. It’s best to haggle with a wholesale dealer license so that you can cut out any middlemen and deal directly with a dealership. While haggling, be sure to know your bottom line and don’t take less! Make it clear that you are ready to walk away.

Always negotiate in person or over the phone—never email!

Protect yourself with a contract

always protect yourself with a contract when selling your car to an auto dealership

When selling your car to a dealer, it’s critical that you protect yourself with a formal contract. If you have legal questions, consult with an attorney. 

While many dealers offer contracts as part of their sales process, you can also find one online and make your own. (You can also look up each state’s motor vehicle department website to see if they have model forms available.) Whatever route you choose, make sure there are no gotchas in your deal—and that there is a clear understanding between both parties regarding who owns what and what happens next.

Get a Wholesale Dealer License

If you have a car to sell and would like to keep some of your money, consider looking into getting a wholesale dealer license. This will allow you access to auto auctions where you can buy and sell cars at low costs, as well as direct trade with dealerships!
US Dealer Licensing can work with you to get you a license in just 30 days by handling all the paperwork and address requirements! Call (888) 344-5570 to get started.

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