Can I Sell My Car to a Dealership?

Quick Facts About Selling a Car to a Dealership

Before presenting your vehicle, clean it inside and out to get the most money from its sale. Consider a thorough detailing.
Let the cash offers roll in from Kelley Blue Book participating dealers by entering some basic information about your vehicle. You can decide if the price is right for you.
Bring your loan information or your car title to the dealership.

Anyone who has ever sold a car or truck to a private party knows that dealing with individual buyers can be a hassle. The potential buyer you have spoken with on the phone or exchanged emails with may not materialize. Or your interested party may be adamant about sticking to some low-ball offer you would never consider. Then there is the off-chance that you could inadvertently invite a troublesome person to test drive your car.

Avoiding such problems is why many people opt to sell their vehicles to dealerships to make the selling experience as quick and painless as possible. Many people assume you must purchase a vehicle from a dealer to sell one there, but that’s not the case. Which is right for you? It really depends on what car you want to sell, whether an older car with some problems, a more recent model you’d like to trade up for something brand new, or a classic you inherited from your grandmother’s estate but don’t want to keep. Every situation is different, but where there’s a will, there’s a way. Read on to get advice for selling your used car to a dealership.

Top Tips for Selling to a Dealership

Prep the Car for Sale
Know What Your Vehicle Is Worth
Get Multiple Offers With Kelley Blue Book’s Instant Cash Offer
Sign Over Your Car Title
Find a Dealer That’s a Good Fit
Check Out Dealer Inventory
Obtain Several Quotes
Don’t Take Too Long
Are You Selling a Specialty or Classic Car?

1. Prep the Car for Sale

Before presenting your vehicle to a dealership, get the most money from your car sale by cleaning it inside and out. Consider a thorough detailing. Getting a mechanical inspection is always a good idea for older cars, so the condition you’ve presented matches the vehicle’s condition and desirability. You may think your car or truck is a real peach, and maybe it is. But step outside yourself and evaluate its condition as a potential buyer would see it. Is everything working the way it should? If not, you might consider fixing that busted window switch and squeaking belt before bringing your car to a dealer’s ever-critical, seen-it-all eye.

2. Know What Your Vehicle Is Worth

Use Kelley Blue Book’s valuation tools to determine the value of your vehicle, both on the open market to a private buyer and as a trade-in. Be honest about your car’s condition. Disclose any accidents or known problems. Still, you can, and should, bargain with the dealer to get the best price possible. Knowing what your car is worth before you go will give you an edge in the negotiations.

3. Get Multiple Offers With Kelley Blue Book’s Instant Cash Offer

You can get cash offers from Kelley Blue Book participating dealers by entering some basic information about your car: its vehicle identification number (VIN), mileage, and an accurate description, among other parameters. If the vehicle’s condition matches your description, the dealer will pay you what it offered. If your description was a little over-optimistic, the dealer will adjust the price down to meet a more realistic appraisal. You are, however, free to take the deal or walk away.

4. Gather Documents

These are the documents you’ll need to sell your car.

Vehicle title (or loan payoff information if applicable)
Car registration
Service records
Loan/lien release documents (if you owe money on the car)
Owner’s manual and extra sets of vehicle keys
A valid driver’s license for verification

Bring your car title ready to be signed over at the dealership. If you are still making payments on the vehicle and the bank or another dealership still holds the title, you can still make a deal with a dealership. Call the lien holder before you head to the dealership to obtain the loan payoff amount. At this point, knowing your vehicle’s Kelley Blue Book Value also helps you understand where you sit financially and any negative equity in the car. You may need to pay the dealership all or part of what you owe before getting any cash from the deal. These types of sales can take longer to process than straight title-for-cash sales. Any balance you owe on a loan can usually be wrapped into a new loan.

5. Find a Dealer That Is a Good Fit

Determine which dealerships would want to buy your vehicle. An older car with a few mechanical problems won’t be a big hit with the pre-owned staff at an Audi dealership and will be more appropriate for a dealership specializing in older cars.

If you get your car serviced at a dealership, it can be a good place to start asking (although that dealer may or may not want your car). Also, you can observe what people are driving in given geographical areas, providing clues as to where there’s demand for your car. Your 2019 BMW 5 Series may be hot stuff in the city, but maybe it won’t fare as well in a place where most people drive pickup trucks. Dealerships, unlike private-party buyers, want vehicles they can sell.

It is best to read through several dealer reviews when making this decision.

6. Check Out Dealer Inventory

When researching dealers to approach, find out what they have on the lot. You can usually do this online. A dealership flooded with the type of car or truck you’re trying to sell may not offer you as good a price as one with more demand for it.

7. Obtain Several Quotes

Just like you should do when looking for a plumber to fix a leaking toilet, you should get a few different quotes to use as bargaining power. Most car dealers will hold their price for several days. Try visiting dealers in different areas to take advantage of various market preferences, and don’t be afraid to use one dealer’s price to try to get more from another.

8. Don’t Take Too Long

Market conditions can change quickly, so if you take too long, the offer you got a few days ago may no longer be valid. Besides, part of the reason you’re selling to a dealer is to streamline the selling process and unload your car quickly.

9. Are You Selling a Specialty or Classic Car?

The mint 1970 Chevrolet Monte Carlo your father willed to you may not be something a BMW dealership would be interested in, but a Chevrolet dealership might like to display the vehicle in its showroom. It all depends on the car you’re selling and what the dealership decides. If you have a rare or exotic car, working with a dealership specializing in that type of car may be the best way to sell it. Whatever the case, don’t be afraid to ask; the worst they can do is say no.

PRO TIP: Use our sister site Autotrader’s Classic Cars marketplace to list your vehicle.

Common Pitfalls to Avoid When Selling a Car

If selling your vehicle, you can avoid these frequent mistakes to get the most out of selling your car. Here’s a list:

Not cleaning your car: The cleaner your vehicle, the more the dealer will see how well you’ve cared for the car. Don’t skip this important detail.
Paying for expensive repairs: If you know you’re selling the car, which you will eventually in most cases, it’s wise to avoid costly repairs. A well-maintained car goes a long way when selling, and your vehicle history report can tell the story if you kept up with maintenance intervals.
Not obtaining several offers: Dealerships are short on used car inventory right now. It’s wise to shop your car around to get the best offer.
Not negotiating: If you avoid haggling on the value of your car, you could miss out on hundreds of dollars in the sale.
Not researching tax benefits: When you sell a car to a dealer and buy a new one at the same place, some states offer a sales tax break toward your new car purchase. It’s wise to research this important tax break to understand how it can lower your bill.