Don’t Sell Your Your Scrap Cars To Car Dealerships Without Reading This Article In Full

Posted on May 6th, 2022

Automotive companies in Perth WA that sell brand-new cars don’t care about your scrap car in any way. Whether you like it or not, the dealership’s goal is to let you buy a new car. Therefore, the only reason they would entertain such an idea of buying your scrap car is the off chance you’ll buy a new vehicle from them.

Think of the principle of economic value. For example, if you’re a car dealership owner, would you tell your sales team to entertain some scrap car sellers? If so, then you understand what it is for them. The economic value that starts with accommodating old car sellers is the prospective sales turnover and nothing more.

Pitfalls of Selling Your Scrap Car To the Dealership In Perth! Read Here

Here is a list of setbacks to help you understand more about the cons of selling your old car to a dealership.

Why You Shouldn't Sell Your SCRAP To The Dealer Perth WA

Why You Shouldn’t Sell Your SCRAP To The DealerIn business parlance, old cars are considered fully depreciated assets. This treatment is necessary because your vehicle has already reached its manufacturer’s indicated maximum quality of life. Hence, the only thing that holds relevance is the so-called “residual value.”

Residual value, also known as scrap value, is the expected amount of the car less the accumulated depreciation. It is one reason why scrap car removal companies or any residual car enterprise take an interest in your vehicle.

Unless it’s an entirely non-functional vehicle, your car will never lose its value, no matter how rusty or greasy it gets.

The dealership, however, doesn’t care about the future economic benefits of your car. Instead, they have a secret motive: to sell you a car.

If you compare dealers to a robot, they are only programmed to convert you into a buyer. Once you become a potential buyer, they’ll mislead you with deals that seemingly favour your interests.

The setback is that you can trade your old car for a lower cost of the new brand, but later on, they’ll add a lot of hidden charges on your behalf to cover up their losses.

Expenses such as:

  • Warranty costs
  • Dealer expenses
  • Service fees
  • Maintenance fees and more

This way, you will not notice that you’re slowly losing the economic value you thought you’d get by selling your car in exchange for a new vehicle.

Dealerships Offer Low Prices For Scrap Cars To Sell Their Car Back To YOU!

Here’s the deal: the dealership will never let you get your car’s fair market value. It’s never going to happen, even if they say it could happen “if you buy a new car.” Remember the secret motive?

The dealership offers the lowest pricing rate among the scrap car buying companies. The simple explanation is that they cannot afford to give you a higher deal because that’s not part of their sales strategy.

Dealerships are high-cost businesses. To sustain the maturity of their enterprise, they need to cut down on unnecessary costs. As a supplemental customer, you’re only as good as their primary customers if you’ve shown an interest in buying a new car. Otherwise, they couldn’t care less about your desire to sell a scrap car.

There is an extreme mismatch of motives between you and your buyer. You’re not the priority of the dealership whatsoever. Hence, you end up getting exploited with a lower scrap value than the standardised pricing.

Dealers Tend To Speak To You Well So That They Can Buy The Car At a Low Price

The primary customer of the dealership is new car buyers, not scrap car sellers. That’s just the reality of their demographics. So it’s compromised at some point, but it’s the flaw of their system that they simply cannot correct.

As a scrap car seller, you are a potential new car buyer. So the implication of your selling a car is perhaps you are considering buying new ones. And that’s when the dealership starts to be interested in you.

The only thing that separates you from primary customers is the possibility that you will buy a car. You are considered a supplemental customer. Thus, a soft buyer and not a hardcore buyer. They’ll present you with a lot of trade-in value that’s hard to resist. However, you’re not their priority in the end, unless you’ve shown a peak of conversion.

Frequently Asked Questions

Is it worth selling to a dealer?

Of all the pitfalls you can experience, reevaluating your choice is the top concern. The high chance of getting exploited is not a desirable risk to take.

In clinical terms, the cost seemingly outweighs the benefit. So, financially, it’s not worth selling your scrap car to the dealership.

What’s the alternative network for selling a scrap car?

There are multiple options that you can choose from, such as scrap car removal companies, private buyers, auto salvage yards, and more. Honestly, these ventures interest you in giving you the highest possible fair market value.

Where can I know the legal rights to sell my car in WA?

To know your legal rights visit Transport WA

Note: go for buyers that can pay cash for scrap cars up to $9999. These are legitimate buyers that won’t engage in opportunistic activities to earn benefits.


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