When you’re ready to sell your car, you have quite a few options at your disposal. Local dealers are itching for new inventory, as new vehicle shortages have made it hard to sell cars, and there are several online services that will buy your car almost hassle-free. If you’re looking to avoid the dealership at all costs, an instant cash offer (ICO) could be the route for you.
Instant cash offers really are almost instant, and they can help you get a good price for your car without leaving home. You’re not limited to a certain car brand when using such services, so you can offload a Toyota, Chevrolet, Nissan, or Ferrari all the same. Every program is a little different, and there are several to choose from, so let’s take a look at how the services work.
What is An Instant Cash Offer?
You’re probably familiar with websites that offer car values, but you should know that many now offer car-buying services in addition to their valuation tools. Companies that provide cash offers generally do so using the data you submit about your vehicle and a combination of market factors. Program terms vary from service to service, but almost all include an online offer, some form of pickup or drop-off, and payment. In many cases, the car can be sold without a trip to a dealership and without a test drive. It’s important to note that, while many instant cash offer scenarios include a firm offer, people using those that require a sale to a local dealership may end up with a slightly different offer after an inspection.
Here’s how it works:
Most online valuation tools use an algorithm that looks at vehicle sales price data, condition information, market conditions, and trade-in ranges for similar vehicles, among other things. To see your vehicle’s value and obtain a cash offer, you’ll be required to enter information about your vehicle, including:
- VIN (vehicle identification number) or license plate number
- Mileage
- Condition (wrecks, how many key remotes, etc.)
- Color, options, and packages
Additionally, before allowing you to complete an appointment to sell a car, many services require that you provide identifying information to prove ownership. Requested documents may include:
- Photo ID
- Image of odometer
- Title (or registration)
- Phone number
Once you’ve entered the information, you should see values for your car. In general, you’ll receive a range of values, from the low end (trade-in value) to the top dollar amounts (private sales). Somewhere in between is the instant cash offer amount, which is a good indicator of how much money you can get for your car.
Instant cash offers are one of the easiest ways to sell a car, and in some cases you can offload the vehicle without leaving home. You end up paying for that convenience, though, as most instant cash offers are lower than the real offer you’d get from a private buyer.
CarGurus
CarGurus has partnered with CarOffer to provide its instant cash offer service. Your offer is determined using real-time data from thousands of dealerships nationwide, which gives CarGurus the ability to find the best price at any given time. To use this service, you’ll need to enter your vehicle details and some identifying information. You’ll then see your offer, and if you choose to accept it, you can schedule a time to have CarGurus pick up your car. Once the car has been picked up, you‘ll receive payment via direct deposit or check. It’s important to note that you’ll be required to provide a photo ID and other personal information along the way.
Kelley Blue Book
Kelley Blue Book (KBB) offers an instant cash offer service that provides a free estimate in minutes. The process works just like getting a vehicle value from the site, as you’ll be required to enter details on a vehicle’s condition, mileage, payoff information, and installed options/accessories. Once you’re done, you’ll be given a number and the option to send your deal to local dealers. That means that the KBB Instant Cash Offer isn’t a solid offer to buy your car from KBB itself. Instead, the dealers that received your offer will reach out to arrange a time for you to bring the car for an inspection. If everything checks out, you can sell the car right then and there and leave with a check. The downside here is that the dealer’s inspection may turn up an issue with condition or mechanical operation that could lower the amount they offer you.
Vroom
Vroom is an online car retail service that offers buyers the ability to have a vehicle delivered directly to their door. The company also buys vehicles and will pick up at the owner’s home. Just like other buying services, the seller will need to enter basic vehicle information, such as mileage, license plate or VIN, and other details. The company will make an offer that remains effective for seven days or 250 miles. If you’re open to selling to them, Vroom will send a driver to pick up at your house and will mail a check.
CarMax
CarMax pioneered the no haggle, little hassle auto retailing movement and the company now buys vehicles at their retail locations. Once you’ve entered your vehicle information, CarMax will give you an offer. It’s important to note that you may be required to take your car in for an additional inspection if CarMax has questions on its condition or market value. If you agree that the offer is a fair price, you can make an appointment at your local CarMax dealership and take the car. The company says you’ll be paid on the spot.
Carvana
If you’ve turned on a television or looked anywhere online in the last couple years, you’re bound to have seen an ad for Carvana. The company offeres both buying and selling services, all from the convenience of your home. You can obtain an offer online in a few minutes, which will allow you to arrange a vehicle sale, or you can get a trade-in value for use in a used car sale with the company. The company says it makes the strongest offer possible based on its view of the car’s value and on market conditions.
What Impacts a Car’s Value?
If your car has been in a wreck or has a salvage title, you’re probably already aware that you’re not getting the A+ value for it, but there are several other factors that also impact a car’s value. These include:
- Smoking - If your car has been smoked in, the value will go down as it requires quite a bit of effort to clean and may never smell right.
- Mileage - Higher mileage cars get lower prices.
- Market conditions - If your car is in high demand, your value will be higher, but if no one is buying your model, expect a lower offer.
- Completeness - Do you have both keys, the owner’s manual, and all relevant components?
- Vehicle history - Wrecks matter, but your car’s value could also decrease if it has been used as a taxi or rental car in the past.
Instant Cash Offer FAQs
Can I Negotiate an Instant Cash Offer?
If you’re using an online tool and plan on having someone come pick up your car, the answer is likely no. Most of these processes are automated to a high degree and there’s very little opportunity to step in with negotiations. If you’re selling using an ICO tool that requires a trip to a local dealer, there’s a chance you could negotiate upward on price. Remember, even though you’re not getting the absolute best value, you’re still likely getting a better price than you would selling during a local dealer’s “specials” promotion or other sale.
Are Instant Cash Offers Legitimate?
Yes. Offerings like CarGurus‘ are backed by large, legitimate companies with years in business providing automotive information and services.
What Is My Car’s True Value?
There are several valuation tools available, so there are bound to be differences in the values you see. Most of the time the values will be fairly close, so it will be easy to get an estimated number. However, when the numbers are far apart, you can take the median price or an average of the values to come up with an estimate. Just remember to be reasonable with your expectations, because using an ICO tool does not always bring top dollar.
How Do Dealers Value Cars?
Most dealers use data from private services that the public can’t access. Values are not always in line with the numbers consumers see on the internet, however, which is why it’s important to enter an instant cash offer sale with an open mind on value and price.
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