Typically main dealers will only retail cars from the same franchise, up to 40,000 miles or 4 years old – if your car falls outside of this criteria you will be financial better off by not part exchanging. I buy cars up to 12 years old and 80,000 miles. My cars are hand picked from private sellers or main dealers who cannot retail cars just like yours due to age and mileage, so cut out the middle man and sell directly to me!
Main dealers are restricted by the manufacturer and can generally only sell the same make of new & used cars. That is why you won’t see a used BMW on an Audi forecourt or a used Range Rover on a Mercedes forecourt, etc. If the truth be known they don’t really want you’re non franchise part exchange, as they have to ring a minimum of three trade buyers to get the car underwritten and then have to dispose of it, it’s all hassle they don’t want. I’m not restricted and buy all prestige, sports and 4x4s, regardless of manufacturer.
Typically main dealers are funded by banks or finance companies, these lenders can restrict the amount a dealer can pay for a car. i.e. usually up to 80% of the trade value and the top up money would have to come out of their cash flow. I am self funded and pay what a car is worth and in many cases much more.
Main dealers need to cover huge overheads by adding big profit margins, this can make them highly uncompetitive when buying cars. I work on a very modest margin as my overhead is minimal when compared to 99% of dealers.
Main dealers have to go to someone in authority to sanction payment, and most will want to pay you with a company cheque but won’t give the cheque until you have dropped off your car. A cheque has the same value as an expired bus ticket until its in cleared funds and can take up to 5 days for clearance. I pay through the Faster Payments system and the money will be sat securely in your bank account before I collect your car.
The majority of main dealers belong to a group, and through no fault of their own can be restricted to funds due to other underperforming dealers within the group being overstocked. I have no such restrictions and will always buy cars 363 days a year regardless of market conditions.
Main dealers may tell you that they will pay more for your car because they can get more as they are a “main dealer”. This is nonsense, the price of any car is dictated by the market and the market is the internet. It’s no secret that buyers feel more comfortable buying from a dealer than privately, providing that the seller offers full dealer facilities, i.e. p/ex, finance and warranty, its irrelevant whether its a main dealer or used car specialist.
You would have to physically take your car into a main dealer to view it and then take it back again if they agreed to buy it, taking up many hours of time. Within a 60 mile radius of our offices in Bakewell & Alderley Edge I will come to you to view, agree a price and to pay & collect your car. A totally hassle free experience!