Are you planning to get rid of your used car and you are looking for who pays the most for used cars? If this is the case and you want to learn more about this topic then you are at the right place because there will be a lot to cover.
Selling a car can be a stressful thing to do. Why I’m saying this? I’m saying this because you need to be in contact with humans, but not any humans but ones that want to get a good deal and take your car for pennies. Hagglers, absolutely everywhere. You just make a post of your car to sell it with a fixed price and they will come right after a few minutes telling you “best I can do is $500”.
That’s why some people just want to get rid of their car and sell it to a company that buys used cars. Some people would rather just get rid of it without the haggling and call it a day. And frankly, you might get less money from this practice. But your mental health will benefit immensely by not being in contact with these people on the phone and in person, there are scammers that will come to see the car and piss you off. And we are going to help you out with that.
First, we are going to learn the basics and that is what is a used car and why you would want to sell it. How to determine the price and the documents needed. Then we will discuss who pays most for used cars. So, if you want to learn more, follow along.
What Is A Used Car? – Who Pays The Most For Used Cars
So, before we delve into the topic of who pays the most for used cars. Let’s first discuss some basic topics. This will be extra useful for the beginners who are into this business and trying to learn car stuff in general. Since not all of us are familiar with this problem. If you are feeling that you are prepared and understand the procedure you can jump to the chapter of who pays the most for used cars. If not, follow along.
A used car in general term is a car that was driven out of the showroom floor. It doesn’t matter if this was before 15 minutes or 15 years ago. A used car is a used car and we need to understand this phrase.
The moment you sign the documents and drive off from the dealership, the car is losing its value. A car is never an investment unless it is a collectible vehicle.
Almost every car loses its value. This is also known as depreciation. So, what cars are depreciating the most? The most depreciating cars are the ones that are considered to be luxury items. Namely, luxury sedans, SUVs, and convertibles.
These cars depreciate like nothing else on the road. You purchase them for 130k and 3 years later you end up with a car that is valued at 85k or less in some situations. You are down $45,000 in three years of use. And this is a lot of money. That’s why if you consider buying a car like this, you need to have a million in the bank account.
But who pays the most for used cars? How to get the best deal? We will get to that, let’s first learn the reasons why would anyone sell their car.
Why You Would Want To Sell Your Used Car?
Now before we learn the thing about who pays the most for used cars, let’s learn what are the possible reasons why anyone would want to sell their car in general. There are a ton of reasons for this practice and we are going to list a few of them.
The first and most probable reason why you would want to sell your car is probably that the car is getting old. As the car is getting old is losing a lot of its value and in order to stop losing money. It is best to sell it and get a good deal than sell it for pennies a few years down the line. This is most notable for luxury sedans like BMW or Mercedes Benz. They depreciate like crazy and you probably don’t want to continue losing money and it is best to get rid of them.
Another reason why would anyone want to sell their car is its many problems. Some cars are full of problems and even new cars end up at the dealership several times each year. This is most notable with Land Rovers and other luxury cars breaking more often than other cars. Sometimes it is better to get something cheaper than getting one of these problems in your life.
The third reason is probably the need for change. As you know, we grow and some things are not very fulfilling as they were two or three years ago. People want to experience and try different stuff.
The last reason that we are going to cover is that hypothetically you are in debt and debts have to be paid. So, one of the possibilities is to learn who pays the most for used cars and sell your car.
How Used Car Worth Is Determined
So, before we dive into who pays the most for used cars, let’s learn how the car’s worth is determined. What are the factors that determine your car’s value in general and how to make a good judgment on how much money to ask for your vehicle on the second-hand market? Let’s elaborate.
Vehicles have a market value. This market value depends much on the make and model. The year of production is also quite important. These vehicles then get into a single group that is valued from $10,000 to $15,000 let’s say.
So, how do you know how much money to ask in this margin of $5,000? This greatly depends on the overall condition of the vehicle and the level of equipment in the specific car.
Some cars are valued more because they are relatively low-mile cars. A car with 30,000 miles will be worth considerably more than a car with 130,000 miles.
Then there are other factors like the equipment that comes with the car. Cars with leather seats and all sorts of conveniences cost more than cars with cloth seats and no other options. So, if the car is less comfortable and doesn’t have options, you might be satisfied with the base market price.
Another thing is the cosmetic condition of the car. If the car has poor cosmetic condition it will cost significantly less than a car in mint condition.
And the last thing is if the car was in a collision. If the car was involved in a collision and got totaled then repaired and got a salvage title, you need to expect about 30% less than a car in mint condition would cost. But who pays the most for used cars? We will cover that in a bit.
Documents Needed To Sell Your Car
Now before we learn who pays the most for used cars, let’s see what documents do you need in order to be able to sell the car on the second-hand market?
The most important document you are going to need is the car title. This title is the most important piece of paper that you should make sure that you never lose.
This is basically the ID of your car. But my car has license plates? It has but license plates change when there is a change of ownership. But in the title lies the proof that you are the owner of that specific vehicle. Meaning that this title is an important piece of paper that has the vehicle’s VIN along with your name on it. So, whenever you sell the car you need to have this document.
Even though, some states allow you to sell your car with a bill of sale. Meaning that the title is not necessary. This is mostly for older vehicles whose titles have been long lost and couldn’t be retrieved. So, the closest family to the owner will sell the car to you. That’s why it is often useful to learn the local laws in your state concerning this practice.
The second document you are going to need is proof of your identity. Which is your ID. Everyone has an ID and you know that whenever you purchase something of this importance, you have to carry your ID with you.
Overall, these are the documents needed for this practice of selling your car. But who pays most for used cars? Well, that’s what we are going to cover in the following chapters where we will discuss this practice in detail.
Companies That Purchase Vehicles? – Who Pays The Most For Used Cars?
Now let’s see who pays the most for used cars. This information is really important for you because you want to get the best deal out there without haggling.
Luckily for you, there are a ton of places where you can sell your car in just a few clicks in some situations. Which is a really convenient thing to do. Nobody loves to lose time on things like this. So, who pays the most for used cars? Let’s elaborate.
1. CarMax Pays Most Ford Used Cars
When it comes to selling a car and learning who pays the most for used cars, CarMax is probably one of the top priorities for many out there. Why is this the case? This is the case because the whole process of selling is really simple and convenient.
Meaning that you will not have to do the haggling and other unpopular methods of selling. You just go to one of their locations and then they appraise your car.
They will thoroughly inspect it and on the basis of your car’s condition, they will give you an offer. This offer you can take at the spot or in the next 7 days. It is that convenient.
And also they pay a good amount of money for cars that are a newer year and low miles. They also buy junk cars but they wouldn’t add them to their lots but resell them later since they sell only cars that are in excellent condition. So, if your car is relatively new and has low miles, CarMax will be one of your top priorities. So, who pays the most for used cars? There are also other companies and we are going to cover them next.
2. Carvana Pays The Most For Used Cars
When it comes to who pays the most for used cars, Carvana is another popular place to sell your car to. With Carvana, everything is done online.
You just enter your car information and then you get the offer instantly. They will then call you and as you send them your ID, bank statement if the car had been paid out, and also photos, more precisely a photo from the odometer.
Then they will call you in the next 72 hours and make an appointment if you accept their offer.
A driver with a tow truck will come to your place and will ask for the car. He will inspect it and make sure that the car drives and performs as it should.
Then the driver will load the car on the truck and fill out the paperwork that you need to sign in order to sell the car to Carvana. Then you get paid for your car and you are good to go.
Also, similar to CarMax, they are resellers. Meaning that they will want to sell the car for a profit later on and will not give you a full retail value for your car. But that’s how things go if you don’t want to haggle. Now let’s move on to the next place of who pays the most for used cars.
3. Vroom Also Pays Good Money For Used Cars
When it comes to who pays the most for used cars, it is also useful to mention Vroom as an alternative. Along with CarMax and Carvana, they are one of the top players in this business and they basically do the same business practice. They buy cars that will later want to resell and make a profit.
The process is quite similar with them as well, you make a request that you want to sell your car to them, they give you an offer and they come to pick the car up. A curiosity about Vroom is that whenever you sell the car to them and reject the offer, they might send you a better one. This is extra useful if you want to get the most out of your car.
4. KBB Instant Cash Offer
KBB Instant Cash Offer is a service by Kelly Blue Book. They are one of the oldest companies out there when it comes to cars in general. KBB give us the best reviews possible since forever.
They also recently had introduced a new service named KBB Instant Cash Offer. With this service, you apply online and fill out the details and then you get an offer that you can either accept or reject.
They don’t buy the cars but this is done by the dealerships that they work with. So, whenever you get an offer, you might be needed to take your car to that specific dealership in order to sell it.
So, who pays the most for used cars? That we are going to cover in a bit after we cover all of the companies that purchase used cars.
5. Sell Your Used Car To Peddle
When it comes to who pays the most for used cars we decided to add Peddle as well. Not that they pay the most, but that because they are a good way to get rid of your junk car.
They buy anything that has 4 wheels and also for a good deal. You can expect up to $1,500 for any type of vehicle out there. Depending on the condition even more in some cases. But they mostly do junk cars that don’t run or old beaters with zillion miles on them.
They also do their business online where you get an offer and arrange a pickup with their driver. They work across the whole country and they are the perfect way if you want to get rid of your junk car quickly and effectively. So, who pays the most for used cars? We will answer in a bit after we cover the two last possibilities when selling a used car to a company.
6. Sell Your Used Cars To A Dealership
This is another good way of who pays the most for used cars. Some dealerships are really generous with their offers if you purchase a new car from their lot.
They want to sell new cars, so they tend to give good offers to people who want to purchase a new car. Maybe this is the way to lose the least money on your used car from the bunch.
Especially if your car is financed and you still haven’t paid off your lienholder the money. You will enjoy your new car in only a few hours until all the documentation is done and ready. So, who pays the most for used cars? We will get to that in a bit.
7. Sell Your Used Cars To A Junkyard
Again, this is another way to sell a car and definitely not about who pays the most for used cars since junkyards are only for cars that do not have any value left.
Similar to Peddle, we recommend selling your used car to a junkyard if you want to get rid of it permanently. Why leave it to rot in your backyard when you can just sell it and earn some money out of this. The amount of money also depends much on the overall value of the car.
If the car is stripped completely, it is hardly likely that you will get much out of it. If the car is still a whole, you will get a good deal. But nothing more than $3,000 in the best case. Now, let’s compared these companies and learn who pays the most for used cars.
So, Who Pays Most For Used Cars?
Now let’s answer the important question and that is who pays the most for used cars? And the answer to that question depends much on the car and model. Some companies value some vehicles based on their selling history. If they sell well, they give you a better offer, if they don’t they give you a smaller offer.
And here is a trick that you can pull. Get offers from all of the different places and compare them. They will vary on the average of about $3,000 if the car is let’s say $20,000 as full retail.
In this case, you will highly likely get $15,000, $17,000, or $18,000 offers on this car. You should go for the offer that is the best and sell the car to the company that gives you the most money.
Since you are already at a loss because you don’t sell the car for full retail. Don’t let them take even more money from you. If you think that your car is worth more, you can also try to negotiate for $500 or $1,000 more. Depending on how much they really want that car.
From the experiences that we studied, Carvana and CarMax pay the best when it comes to selling a car. So, that is the answer for the who pays the most for used cars question.
Facts about the Best Places to Sell Your Car Online:
- Cars.com is the best option for selling your car online, offering instant cash offers and private sale listings.
- Online dealers like Carvana and Vroom provide hassle-free sales, instant cash offers, and may deliver your new vehicle.
- A private sale could provide the best value, but requires more work on your part to list and sell the vehicle.
- Other top places to sell your car online include Peddle, CarMax, CarGurus, and Facebook Marketplace.
- EBay Motors and Cars & Bids are private sale platforms that charge listing fees and are suitable for certain types of vehicles.
- Factors that affect the value of used cars include cost, platform, transaction support, customer experience, and industry reputation.
- When selling your car to an online dealer, they may pay off your old loan and offer you the difference.
- To sell your car privately, you need to prepare documents, decide on payment methods, and transfer the title to the buyer.
- Selling your car to a local dealer is a good option if you plan to trade it in for a vehicle in their inventory.
- To get the best value for your car, compare offers from multiple companies and decide which factors are most important to you.
Conclusion To Who Pays The Most For Used Cars
In this article, we have covered who pays the most for used cars. First, we learned what makes a used car. Then we learned why cars depreciate and someone would want to sell a vehicle.
Later, we covered what documents you will need if you want to sell your car to a company that buys cars. These are the title and personal identification.
Then we learned all of the best companies to sell your used cars. Some work only online while some have offices. Depending on where you want to sell your car to.
Lastly, we learned who pays the most for used cars and where you can sell your car to and make a good deal.