Cash for Cars: Pros and Cons of Selling Your Car Online
Online platforms for selling cars have become increasingly popular in South Africa. A quick internet search reveals plenty of options, such as WeBuyCars, CashforYourCar, CarZar, Cash4Vehicles and Weelee.
Before you access the first available site and complete an application form, it’s good to know the pros and cons of selling a car online.
Also, note that instead of selling a car for cash, you can use a paid-up vehicle to get an asset-based loan from Pawn My Car. This is a good option if you’re not sure you want to part with a vehicle but need to secure funds.
Pros of cash for cars sites
Cash for cars sites do have certain advantages, relative to selling privately.
One of the greatest benefits of selling a vehicle to an online marketplace is the security that the transaction affords.
Most reputable sales platforms are prepared to assess the vehicle at your home or place of work, and collect it once you have agreed to their offer.
You won’t have to meet individual strangers or navigate through dodgy areas as you visit one car dealer after another.
Speed and convenience
It’s generally much faster and easier to sell a car to an online dealer than to sell it privately.
You won’t need to place ads, field phone calls or arrange meet-ups with potential buyers, and the process is much quicker.
You’ll be required to complete an online application form and submit required documents. However, the paperwork is finalised by the online dealer and you’ll be paid the agreed amount with minimal delay.
Cons of cash for cars sites
Selling a car for cash to an online dealer has some drawbacks to be aware of.
Lower prices for cars
The main, potential disadvantage of using an online car sales platform is that you can expect to be paid less for your car than a private buyer would pay.
Typically, you can expect to get offers that are as much as 15 to 20 percent lower than those you’d get from a private sale.
It’s not only the luxury vehicles that attract comparatively poor prices. Online dealers have also been known to pay up to 30 percent less for smaller passenger cars, like the VW Polo 1.6 TDI and Nissan 1.6 Qashqai.
Price drops once you arrive
Some online car platforms have a reputation for lowering their initial offers as a matter of course, once you bring a vehicle to their physical inspection centres.
At this point, you’ve invested time and effort in bringing them your car. That makes you more likely to accept a lower offer – and opportunists may try to take advantage of this.
In addition to offering prices that are lower than those in the private secondhand car market, online dealers usually deduct a transaction fee from the price they pay you. This fee may be significant.
Consider a loan from Pawn My Car
Instead of selling your car online via a cash for cars site, you could choose to use it to secure a cash loan. With Pawn My Car, you can use a car or another vehicle that’s in your name to secure a loan quickly and easily, with no delays or hidden costs.