Companies That Buy Cars: The Complete Guide
There are many companies that buy cars. So many in fact, that when selling your car, you are faced with a huge amount of options. It can be extremely hard to pick the right buyer. Compare top car buying companies here.
With the vast amount of choice out there, how can any non-car experts possibly know how to find the best company? Even for car-experts, finding the right business to buy a car can be an enormous challenge.
In this guide we take a look at the different kinds of companies who purchase vehicles…
Can you achieve the best deal by selling your car to a local or franchised dealer?
What about online car buyers? They offer both speed and convenience, buying your car quickly and without much of the hassle associated with selling your car.
However the options don’t end there. There are many other businesses that buy cars.
Car manufacturers and their branches will often buy your car. They have scrappage schemes for older cars, offering a discount on one of their new models.
With recent concerns over air pollution and diesel cars, along with a slump in new car sales, these schemes have been heavily promoted by car manufacturers. Scrappage routes provided yet another option for those looking to sell their car.
There are also companies that buy cars for scrap. If your car is nearly worthless, and you are looking to gain some cash quickly, these might provide the perfect solution for you.
So as you see, with so many different buyers out there, it is hardly surprising that sellers often feel confused! If you want to sell your car, how can you know if you are selling it to the right type of company?
Let’s explore the options in more detail…
Different kinds of car buying companies explained:
Car dealerships that buy cars
Car dealerships have been the automatic go-to option for decades. In this section there are two different kinds of companies that buy cars. One being independent and local car dealerships, the other being franchised dealerships.
Independent car dealerships
Local car dealerships have been a popular way of selling your car for a decades. You would simply drop off your car at the one closest to you, and they’ll buy it off you.
Well, no. There are several issues to consider when selling to your local dealership.
One of the key issues with selling to dealerships, is the fear you are getting ripped off. Famously, independent, local dealerships have a reputation for untrustworthiness.
There are always worries that the dealer will buy your car for nowhere near it’s value, only to sell it on as soon as possible for a much higher price.
There’s a lack of transparency, as they seemingly possess all the information about your car, whereas you don’t know anything about the service they’re offering.
Franchised car dealerships
Unlike their independent counterparts, franchised car dealerships will often have more financial power.
These companies that buy off the public aim to achieve a profit by buying cars they think they can sell on for more.
Their direct links to the car manufacturers mean they have a better reputation of trustworthiness than their independent counterparts and can also offer you financial incentive to buy a new car as a part exchange.
However, just as with independent dealerships, they do have a reputational problem with transparency and trustworthiness.
Once they have bought your car there is little information given to the seller about how much they sell it on for.
Just like the independent dealerships, there are therefore numerous things to consider before selling your car to a franchised dealership.
Online companies who buy cars
Many of the fastest growing companies that buy motors are online services. These companies have made a significant impact on the used car market.
Famously beginning with the launch of WeBuyAnyCar in 2006, online car buyers have become a big presence on the UK car market. There are now multiple similar companies that let you sell your car online using the We Buy model.
They offer a quick, and relatively hassle-free service. If you want cash for your car quickly, these are the ones for you!
If you are thinking of selling your car to an online car buying company, but are confused with the amount of choice, then Motorway is a good solution for you that compares all online car buying options.
And remember to check out our guide to the top 5 best online car buying companies for completeness.
Companies that buy cars for scrap
Is your car nearly worthless on the second hand car market? Does it have significant damage that would cost more than it’s worth to repair?
If so, then companies that buy cars for scrap may be the solution for you.
They offer a way to get a quick and easy way of getting your car scrapped.
It may not be the most profitable, and you may be able to get more if you broke up your car and sold it as parts. However, this is a process that can drag on for ages. As a result, not everyone has the time to do so.
Companies who buy cars for scrap, like Motorway’s partner CarTakeBack, offer an easy solution.
They will take your car, offering a reasonable and quick offer for your scrap car.
If you want to find out more about selling your car for scrap, check out our complete guide to getting cash for scrap here.
Car scrappage schemes
Car scrappage schemes provide another provided another way for people looking to upgrade their cars.
These schemes are often initiated by either governments or car manufacturers.
There have been numerous reasons for launching these schemes over the years, including attempts to fight falling sales figures.
In recent years, the slump of sales of new cars and fears of pollution from older vehicles has resulted in the creation of a number of car scrappage schemes.
With the UK government taking steps to reduce the of NO2 pollution and improve air quality, many diesel drivers were unsure over what to do with their vehicles.
Diesel drivers were now faced with the prospect that the value of their cars had been reduced significantly.
As a response to the market trends, several car manufacturers launched or rushed through new scrappage schemes. These aimed to encourage drivers to turn in their old cars, and get money off a new one.
For those worried about the declining value of their cars, these offer a possible solution.
In exchange for turning in their old, often high polluting car, they could receive a discount off a brand new model.
Some of these schemes have now come to an end. However, there are still several schemes available. As mentioned at the start of the article, you can check out our full guide to scrappage schemes here.