Motor traders want to sell every vehicle on their lot for more than they paid for it.
It sounds simple, but there are so many variables involved that it is often a long, drawn-out process, with sellers wanting more than buyers are prepared to offer. In the end it comes down to a mix of negotiating skills and the needs of the seller.
Dealerships
When it comes to restocking your lot, buying new and used vehicles from franchises guarantees quality, but comes at a price.
Dealerships specialise in vehicles from certain manufacturers which means all stock meets the top standards, whether it is new or used.
Staff at the dealership are experts in the brands they sell and approved used vehicles come with warranties to back them up.
They are likely to accept vehicles in part-exchange deals and offer finance options.
The downside of buying from a dealership is that they are likely to be the most expensive and tend to focus on newer cars.
Dealerships that sell only one or two brands of vehicles also offer limited choice to buyers.
The decision is whether the expert service is worth the money, bearing in mind motor traders will need to make their own profit when reselling.
Independent dealers
Independent dealerships usually offer a large variety of vehicle makes and models and are cheaper than the main dealers.
They will help buyers find the car they want without any bias to any particular manufacturer.
As with main dealers, they may be able to offer warranty and finance options.
Unlike a main dealer, which has manufacturer’s options and discounts to fall back on, negotiating prices with independent professionals can be difficult.
They generally charge lower prices than franchised dealers and there is more legal protection compared to private sellers or auction houses.
But they may not have as much in-depth knowledge about the specific car being purchased and similar vehicles might be available cheaper through auctions or private sales.
Car supermarkets
Car supermarkets keep hundreds of used mainstream cars usually sold at cheap prices.
There is usually a wide choice of cars which don’t hang around for long, with many sold and driven away on the same day.
Many offer finance and the one-stop-shop service makes them appealing.
Car supermarkets tend to focus on the main brands and models, making it more difficult to find a less-popular brand or particular vehicle spec.
Any warranties or part-exchanges are likely to be less in value than from a main or independent dealer, but buyers may consider it a fair trade for the price.
Private sellers
Private sales can be a great way to pick up stock because there is room to negotiate the price and they may be looking for a quick sale to make way for a new vehicle or if they are in need of money.
The vehicles are often well maintained and looked after, making them attractive to potential buyers.
But it can be difficult to arrange a time to view and test drive the car and unless you are able to get them to bring it to your garage for a proper inspection, you have to be satisfied with what you see at the roadside.
You only have the seller’s word about mileage, outstanding finance and accident history, which need to be checked carefully before purchasing.
Auction houses
Auctions are full of bargains, which means they’re also full of motor traders looking to snap up a good deal.
It’s worth bearing in mind that if you do get the car you wanted, you will also have to pay an admin fee, which will push up the price.
There are no test drives or inspections beforehand and, as with private sellers, you have to use your judgement on the spot.
Vehicles are usually sold-as-seen which gives you little legal back-up if there are problems with the car.
This can also make auctions dumping grounds for vehicles people want rid of and temporary fixes can hide major problems.
Autotrader
With so much at stake and with many choices available, the one-stop-shop option is hugely appealing for motor traders.
All cars come with a price indicator, free five-point background check and reviews of the seller to help buyers make the best choice.
It also offers a Vehicle Check for more in-depth background on a vehicle.
The three key areas when looking for vehicle stock are price, quality and convenience. It is better to miss out on a vehicle while carrying out proper checks than to pay over the odds for it or, even worse, be left with something only fit for the scrapyard.
