We Sell Cars. Killing the second hand car dealer??

[Mike Nel]

I am currently browsing the web for an FJ. I couldn't help but notice that We Sell Cars are a lot cheaper than other second hand car dealers.

I know the business model of We Sell Cars. They give you a good price for you vehicle, they slap 10% on that, and a few days later the vehicle is sold. That's why they move so many vehicles.

Two vehicles I am looking at as a comparison:

1) 2012 FJ with 62000km's on the clock. Price.......R321K
2) 2012 FJ with 52000km's on the clock. Price.......R379K

Two almost identical vehicles but a R60K difference.

If We Sell Cars can keep this going, then surely the life of the Second Hand Car Dealer is coming to a end?

[ThysleRoux]

What back-up do they provide? Guarantee, registration, roadworthy, etc........

[KurtG]

I would also like to know because during my recent car search before settling on the Low Rider (Accord), these guys were always that little bit cheaper.

I assume they also fall under the CPA laws, but won’t offer a longer warranty like some big dealerships insist on (two years 40,000km etc)

[Mike Nel]

I will investigate regarding the warranties etc.

But as far as selling your vehicle, they can’t be matched. Unless you have time and patience to sell out of hand

[ThysleRoux]

I would also like to know because during my recent car search before settling on the Low Rider (Accord), these guys were always that little bit cheaper.

I assume they also fall under the CPA laws, but won’t offer a longer warranty like some big dealerships insist on (two years 40,000km etc)

The minute a dealer INSISTS on an aftermarket warranty, I walk away. They use this to reduce their own risk under the CPA, but the purchaser must pay for the cover.

[KurtG]

I would also like to know because during my recent car search before settling on the Low Rider (Accord), these guys were always that little bit cheaper.

I assume they also fall under the CPA laws, but won’t offer a longer warranty like some big dealerships insist on (two years 40,000km etc)

The minute a dealer INSISTS on an aftermarket warranty, I walk away. They use this to reduce their own risk under the CPA, but the purchaser must pay for the cover.

Exactly, and I do the same...

[Mad Manny]

If "We Sell Cars" is cheaper than the competition, then "We Buy Cars" must be the worst place to sell your car to.
No?

[ThysleRoux]

Manny as I understand it they operate on a "small margin, large turnover" principle - claiming to give the best of both worlds.

[Mike Nel]

Manny as I understand it they operate on a "small margin, large turnover" principle - claiming to give the best of both worlds.

True

I got offered R265K for my FJ if I traded it at a Toyota dealer.

We Buy Cars offered me R285K

I sold it out of hand, because I had time to do so for R330K

[KurtG]

Manny, We Buy Cars are wholesalers and therefore don’t have the huge overheads of normal dealers. Therefore they can offer more and sell for less, and they move volumes too.

Also, I am led to believe that they usually have buyers lined up already for a lot of their purchases so the funding cost is lower as the car moves in and out of stock very quickly.

[Michael]

I know of one dealership who is complaining that they can't get any good used stock because We Buy Cars is taking it all.

On the other hand I just bought a car on one of their auctions and was very happy with the deal. Very straight forward and easy. Also, looking around their warehouse, quite a few good deals from what I could see.

[Wave]

Last year I tried to sell SWAMBO's Cross Polo TDI privately, retail was R139900, dealers had them up for R135-R150k for a similar spec. I had it up for retail, not one person even showed interest in the car.

We buy cars came, offered me R136 000 (I had to bargain them up from R130k)
They settled the car immediately, and let us drive the car for another 3 weeks as at that stage I had not found a new car... I was happy.

While the buyer was sitting at my desk finalising the deal, he informed me that the car was sold so if i could let him know as soon as we had bought a new car so he could conclude that deal, he said We Buy Carrs buys at least 300 units per day, and need to sell as many of them the same day. they have a really small mark up and many dealers buy from them.