Reviewing instant cash offers for your car
Korawat photo shoot // Shutterstock
Reviewing instant cash offers for your car
A client and car dealer shake hands after agreeing to a sales contract.
When you’re ready to sell your car, you have quite a few options at your disposal. You could sell it privately. Alternatively, local dealers are always itching for new inventory. And, latest on to the scene, there are several online instant cash offer services that will buy your car almost hassle-free. Such instant cash offer services can be a great option if you want to minimize hassle as well as net a fair price for your car.
With an instant cash offer, 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, so CarGurus took a look at how each service works.
What is An Instant Cash Offer?
You’re probably familiar with websites that offer car price trends and valuations, but you should know that many now offer car-buying services in addition to their valuation tools. These are known as instant cash offers, and are generally backed using the data you submit about your vehicle plus 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 some 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.
How to get an Instant Cash Offer for Your Car
Most online instant cash offer 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 (past accidents, 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 offers for your car. Depending on the website you’ve visited, you might see only one offer, or it might be a range. This is because some websites give quotes both for selling 100% online, or selling to a local dealership.
Selling 100% online is arguably the easiest way to sell a car, and in some cases you can offload the vehicle without leaving home. Just be aware that you could make more money by selling your car privately, provided you’re prepared to put in the extra work that’s required to do so.
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.
- 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. Accidents matter, but your car’s value could also decrease if it has been used as a taxi or rental car in the past.
Can I Negotiate an Instant Cash Offer?
If you’re using an online tool and plan on having someone come pick up your car, it is unlikely that you’ll be able to negotiate the instant cash offer that’s been provided. 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 instant cash offer tool that requires a trip to a local dealer, there’s a chance you could negotiate upward on price. Remember, however, that this could work both ways, and if the car isn’t as you’ve described it then a dealer might revise its offer to reflect this.
Instant Cash Offer FAQs
Are instant cash offers legitimate?
Yes, there are several instant cash offer services that are backed by large, legitimate companies with years in business providing automotive information and services. As ever, if in doubt do your research, read reviews and stick with the better known brands.
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 instant cash offer 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.
This story was produced by CarGurus and reviewed and distributed by Stacker Media.
