The Motorist Guide to selling a second-hand car: car selling platform versus direct buyer

Fear the paperwork associated with selling used cars directly but don’t want to lose more money by selling through a dealer? Motorist is here to help reach you an extensive customer base, and we’ll even sort out the paperwork for you!

There comes a time when your car has run its course, and it's time to sell it. Or maybe you're simply looking to trade in your car for an upgrade. If you are planning to make that leap, then you are probably asking yourself this question: “Should I sell my car through a second-hand dealer or to a direct buyer?” 

To ensure your first car sale is a pleasant one, we’ll be comparing the pros and cons of both options in this article.

Selling through a car-selling platform

Most first-time car sellers will choose to sell a second-hand car through a car-selling platform for one reason alone: convenience.

With an extensive network of buyers readily available, you can simply submit your car details with any car-selling platform and get a valuation for your car. If you don’t receive a price valuation you like, you can simply register your car with other car-selling platforms and compare the prices between them.

Once you have picked a car-selling platform of your choice, and a buyer has been found, the platform will arrange a viewing appointment for the buyer and settle all the necessary paperwork. Depending on the paperwork and car evaluation report, your car could be sold in a matter of days, and the money could be sent to you as a deposit or in cash upfront.

As such, selling through a platform dealer is preferred by many as the process is quick, easy, and painless.

The drawback of this option is that it can be less profitable to sell through a car-selling platform, as car-selling platforms usually receive offers for your vehicle through second-hand car dealers who are looking to make a profit, and as such, your vehicle would not be sold at the market rate. However, here at Motorist, we hold an auction of your vehicle for the second-hand car dealers to ensure that you get the highest price possible within 24 hours!

Selling to a direct buyer

A direct sale transaction is usually more profitable for the seller since one does not have to pay for any platform mark-down.

However, the process is slightly more tedious as the buyer or seller is responsible for dealing with all the paperwork and legwork associated with the transaction.

The paperwork to own, drive, and insure your car includes the PNP-HPG Clearance Certificate, LTO Certificate of Registration, Accomplished Motor Vehicle Inspection Report, Certificate of Emission Compliance, Insurance Certificate of Cover, and more.

The average seller might (quite rightly) find these administrative processes too much to handle, and thus prefer to conduct their transaction through car-selling platforms, who will handle all the paperwork and management of the potential buyers on the seller’s behalf.

Moreover, selling a car directly on platforms like Facebook Marketplace can take weeks or even months to complete the sale, and may necessitate additional expenses for advertising to attract attention to your listing.

Facebook Marketplace Listing - 21 Weeks Unsold

Retail price versus Realistic selling price

Lastly, there is a difference between retail prices and realistic selling prices. The retail price posted by other sellers is the price expected by the seller, not the actual selling price after negotiations with the buyer. The price does not account for the condition of your car, market fluctuations, and the buyer's perceived value of the car.

While most used car dealerships will help refurbish your car to make it look brand new and offer some after sales service. Most car owners seeking to sell their vehicle likely prefer not to invest additional money in the car they are looking to part with. This is why the retail prices are commanding higher.

On the other hand, the realistic selling price is the amount agreed upon between the buyer and seller after viewing the actual unit and considering factors such as the car's condition, current market demand, and other relevant factors. This value is usually lower than the retail price advertised. This is important as the prices posted by other car sellers can mislead you into thinking that your car is worth more than it is, resulting in slow sales and disappointment. 

Now that you know the pros and cons of selling through a platform dealer versus selling directly, you can confidently choose which option suits you best! We at Motorist look forward to working with you to sell your vehicle with the utmost convenience.