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When it comes time to say goodbye to your current set of wheels, you have plenty of options. You could sell to Carvana, sell to CarMax, sell to a private party, or perhaps trade in at the dealership. The list goes on and on.
Recently, I went through the process of selling my 2017 Volvo S90 to Carvana, and the process was unlike any other car dealership experience I have ever had before. Selling to Carvana was simple, smooth, and financially, the right choice for me.
We documented the process on our YouTube channel (the video above), and I wanted to go in more detail about the process. Here’s what went well, how it works, and more.
How much does Carvana pay?
Carvana pays top dollar for their used cars. Why? Because they’re a HUGE publicly traded company that needs to impress investors with constant growth. The only way they can grow is to sell more cars, and the only way they can sell more cars is to buy more inventory. Because of this, Carvana is willing to pay top dollar for used cars.
Obviously Carvana (and all the other digital retailers) buy inventory from wholesale used car auctions, however, when you buy a car from the auction there are a lot of associated fees (buyers fees, transportation, and more). Because of this, companies like Carvana are happy to pay a premium to people like you and me because they don’t have to worry about all of the other costs associated with buying an auction car.
If you’re thinking “should I sell my car to Carvana to get the most amount of money,” the answer may be yes.
Before you do, make sure you compare multiple offers from the growing number of online car buyers. CarEdge has made it easy for you to get all of your offers in one spot, with no annoying phone calls, and no hassle. Check it out below!
Why not CarMax or EchoPark?
Carvana dominated online car buying last year, but the market is quickly changing (check out the video above). There could be better offers out there, and that’s why we recommend comparing offers first.
I recommend you get offers from Carvana, EchoPark, and CarMax before deciding where to sell your car. After we posted our video on YouTube, we received comments from people that told us they received higher offers for their cars from CarMax, EchoPark, and others.
Some commenters even shared stories about selling their cars privately and getting thousands of dollars more than what Carvana offered.
What does all this mean?
If you’re looking for the highest offer possible, you’ll need to do some work to get quotes from each of the various companies (Carvana, CarMax, EchoPark, and others), as well as test the waters of selling privately. Keep in mind that selling privately requires a lot more work, and part of the benefit of selling to Carvana (or a similar company) is to avoid all that hassle and headache.
Did Carvana change the offer when you got there?
No! It’s important to understand that your Carvana offer is good for seven days and one thousand miles. I took advantage of both of those parameters when I sold my car to Carvana. I actually sold my car to Carvana five days after my offer “expired,” but this was okay because their online scheduling tool only had availability at that time. That was one of the surprising aspects of my sell to Carvana experience, they were so incredibly flexible.
You communicate via text message with your rep and they’re very accommodating to any changes you need to make. For example, I was originally scheduled to have my car picked up by Carvana in New Jersey, I then realized it would be advantageous for me to drive the car back to Maryland (to move some things), and when I asked Carvana if the offer would change if I drove back to Maryland their answer was simple, “as long as the odometer is within 1,000 miles of the photo you took, you’ll be fine.”
Not only did Carvana not change their offer, they were very accommodating to all of the changes I made during the process.
How long does the Carvana offer last?
When you sell to Carvana your offer is good for 7 days or 1,000 miles. This is the most generous policy that I am aware of. CarMax offers a 7 day, 500 mile policy, while Vroom offers a 2 day and 250 mile policy.
How long does it take to sell to Carvana?
Selling a car to Carvana takes less than an hour (and that includes the work you need to do online before you drop your car off, or they pick it up from you). Filling out the online form is quick and easy. Dropping the vehicle off at Carvana takes no more than 20 minutes. Carvana even pays for your Uber/Lyft ride back to a location of your choice.
Did Carvana inspect the car?
Sort of, but not really. I was surprised at the fact that Carvana did not inspect my car when I dropped it off. I thought they would do a slightly more in depth inspection upon my arrival, but the reality was they didn’t.
Their staff person walked around my car with an iPad and took some photos, and that was about it.
Text messages you receive from Carvana repeatedly remind you that your car needs to be in running and driving condition, specifically the battery can’t be dead, nor can the tires be in non working condition. Aside from that, there’s no real inspection or requirements for what condition the vehicle needs to be in.
How does Carvana handle negative equity?
If you owe more on your car than it is worth, you’ll be asked to get a bank check for the amount of the difference between their offer price and the amount remaining on your loan. You’ll upload an image of this check to Carvana and bring it with you when you ultimately sell the vehicle.
So there you have it. If you’re thinking about selling your car, this is what you need to know about the sell to Carvana experience. Let us know in the comments below where you prefer to sell your vehicles.
Should I sell my car to Carvana?
If you want the simplest selling experience, I would recommend you consider selling your car to either CarMax, Carvana, or EchoPark. Although Carvana pays a fair amount to sellers, they’re not the only online car buyer these days. Make sure to get online offers from top buyers before making your decision.
Looking for help buying or selling a car? Our team of Car Coaches is changing car buying for the better! From free guides and cheat sheets to premium, personalized car buying help, we’ve got options to suit your needs.
Today on the Auto Insider podcast, Ray and Zach discuss the latest trends in the used car market. Wholesale prices have seemingly hit the “peak” and are on their way back down. We’ve seen back to back weeks of decreased wholesale used car prices.
Black Book, one of the industry authorities on used vehicles has reported that the quality of inventory for sale at the auction has deteriorated. Wholesale used car supply is running so low that dealer’s are unable to keep their lots full enough to sell to retail customers.
The New York Times recently published an article titled, “Want to buy a used car? So does everyone else.” Ray and Zach discuss this as well.
Buying a used car in today’s market is like trying to ride a unicycle in grass — difficult. If you’re uninformed, you could easily overpay, fall victim to predatory fees, or even end up with a clunker. There are common car-buying mistakes you can (and should) avoid, and this is especially true when buying a used car, since in most states there are fewer legal protections once you buy a used car “as-is.”
Here at CarEdge we want to make sure you’re an informed car buyer that gets a good car at a fair price, and that’s why we decided to list out our top four tips you can refer to during your car buying process. No one wants to get taken advantage of, and with these four simple tips you can make sure you don’t fall prey to common car-buying mistakes.
Without further ado, let’s jump in!
Car-buying mistake #1: Not getting a pre-purchase inspection
One of the most common car-buying mistakes you can make is not getting a pre-purchase inspection on a used vehicle. A pre-purchase inspection is a must, even if you’re buying the car out of state.
Some car buyers aren’t aware that you can request a pre-purchase inspection, others don’t think it’s worth spending a few hundred dollars to get one done. Our rule of thumb? Always get a pre-purchase inspection on any used car. This includes certified pre-owned vehicles. Why? Because the peace of mind is worth it.
Every state is different, but generally speaking, the laws protecting used car buyers are pretty unforgiving. In most states the laws surrounding “as-is” purchases don’t provide any recourse for buyers who end up with a clunker. The purchase was made “as-is,” and the seller is in the clear.
With that in mind, it should be obvious that getting a pre-purchase inspection is priority number one when purchasing your next used car. Skipping a pre-purchase inspection can be a costly car-buying mistake that could have been avoided. Plus, you can even leverage the results of the pre-purchase inspection when negotiating the purchase price of the vehicle.
For example, if your mechanic says that the car needs new brake pads and an oil change, then you can negotiate the cost of those repairs into the selling price of the vehicle. If you didn’t conduct the pre-purchase inspection, you would have been stuck footing the bill for those repairs yourself.
How should you go about getting a pre-purchase inspection? I am glad you asked! First and foremost, if you have a trusted mechanic, have them do the inspection. If you don’t have someone on standby (which is most of us), then we recommend a service called Lemon Squad. Lemon Squad is a national network of mechanics, and the reason we recommend their service is because they have been in business for a decade, and they have an “A” rating with the Better Business Bureau.
If the seller of the vehicle won’t let you get a pre-purchase inspection, that’s a sign that this isn’t the right car for you to purchase. If you were selling a car in good faith, wouldn’t you let someone get an inspection done? If they won’t, walk away. It’s not worth making this car-buying mistake only to get stuck with a clunker.
Car-buying mistake #2: Don’t rely solely on CarFax or Autocheck
All too often we hear from car shoppers that they purchased a car that had a clean CarFax, only to find out after the fact that the vehicle had been in a minor accident, or had undisclosed repair work done. How and why does this happen so often? It’s simple, CarFax is only as good as the data they receive, and the reality is, CarFax and Autocheck don’t get ALL the information about a vehicle, and when they do, it might not always be that timely.
How can you protect yourself from this reality? Fortunately, there’s a simple workaround!
Make sure to google the VIN of the vehicle you’re interested in before purchasing. I can’t tell you the number of times a quick Google search has brought up accident photos, auction listings, and more that paint a very different picture than the CarFax or Autocheck did. Also, call your insurance company and tell them you’re thinking about purchasing a vehicle. Give them the VIN, and ask them to run a report on their end (insurance companies have access to more information than CarFax and Autocheck do). By simply calling your insurer, you can get a more clear picture of the history of any vehicle. Neat, eh?
Doing a quick (but through) VIN check before you buy a used car can save you countless headaches down the road.
Car-buying mistake #3: You don’t test drive the vehicle
As a car shopper, you should have no fear of test driving one (or many) vehicles. Taking a car (whether it be new or used) for a test drive is something you absolutely should do.
Although not as effective as a pre-purchase inspection, test driving a car will also shed light on if it is in good working order, and more importantly, it will also help you determine if it’s the right car for you. As my dad used to say to me, “the feel of the wheel can seal the deal,” and I think he is 100% right. It’s hard to commit to such a large purchase without at least first test driving a car.
Even if you’re getting the same car you already have (or have previously owned), it’s still important to take it for a test drive. No two used cars are exactly the same, and for that reason alone, it’s worth taking a test drive.
Car-buying mistake #4: You pay an additional reconditioning fee
We’ve written extensively about the fees you should and shouldn’t have to pay when purchasing a vehicle. The number of horror stories we’ve heard from shoppers who were charged for nitrogen tires, or a duplicative destination charge is unnerving. However one fee you should never have to pay on a used vehicle is an additional reconditioning fee.
If you are ever asked to pay a reconditioning fee that adds to the price of the car, refuse it! It is absolutely bogus.
Reconditioning is an industry term for the work a used car needs to get it “showroom ready.” This is simply a cost of purchasing inventory and preparing it for sale to a retail customer. With that in mind, if you ever see an additional “recon fee,” recognize that it is B.S., and remind the seller that the reconditioning should already be factored into the selling price of the vehicle.
Dealers have been known to tack on this fee, and it’s a car-buying mistake we’ve seen too many times before. Don’t pay for additional reconditioning!
Bonus tip! Car-buying mistake #5: Don’t overpay
Don’t overpay.
This may seem obvious, but do your best to not overpay. Cars are a commodity, which means there are A LOT of them.
Be diligent about checking market conditions for the car you’re considering purchasing. Make sure that the dealer you’re working with is not selling the car at a ridiculous markup. With our Market Price Report you can quickly see how negotiable other dealer’s similar vehicles are. Definitely take the time to do that before making your final purchase.
At the end of the day, it’s incredibly important that you get a fair deal. The best way to ensure that happens is to do a bit of research in advance of agreeing to an out-the-door price.
Dealership fees and add-ons can add up to hundreds and even thousands of dollars, but that doesn’t mean you have to pay them. It’s no secret that dealer markups are ruining car buying. This guide to car dealer fees will help you understand common fees, spot hidden or fake charges, and learn how to avoid them.
Common Car Dealer Fees
When purchasing a vehicle, it’s essential to be aware of the legitimate fees and taxes that make up the out-the-door price. These fees are typically imposed by the government and vary by state or local jurisdiction.
Here’s a closer look at some of the most common legitimate fees and taxes associated with buying a car.
State & local taxes
Buying a car comes with a whole host of taxes. These include city, state, and county sales tax, personal property tax, and often a vehicle license tax, which has to be paid annually. These all vary from state to state, and in the case of sales tax, in even smaller jurisdictions.
Title, Tags, and Registration
In addition to taxes, there are a handful of other legitimate fees that are imposed by your local government. Title, tags, and registration fees are all par for the course when purchasing a vehicle.
The title fee is charged as a cost for the documents required to transfer the title, the cost for this fee can range from $4 up to $150 depending on the state.
Registration fees, charged to cover the cost of registering the vehicle under the buyer’s name, can vary wildly. Some states charge a flat fee, some charge based on weight, while others charge based on how old the car is. Our out-the-door price estimator will help you get a sense for how much your state’s registration fees will be.
Tag fees relate to the physical plates you need to carry on the vehicle. Again, this varies from state to state, but know it is another fee you should be prepared to pay.
Doc fee
Doc fees straddle the line of legitimate and illegitimate. Know that you can and should negotiate the doc fee with a car dealer. Also know that the dealer will never actually remove the fee from your buyer’s order, instead they will reduce the selling price of the vehicle by the same amount as the doc fee.
Doc fees change from state to state and from dealer to dealer. Many states cap doc fees to prevent dealers from exploiting them. For example you’ll never see a doc fee of more than $85 in California, whereas in Florida you’ll frequently find dealers charging upwards of $1,000 for a doc fee. In some states it’s the wild west.
Read the contract carefully: Make sure to review the sales contract thoroughly and ask the dealer to explain any unfamiliar fees or charges.
Look for inconsistencies: Compare the fees listed in the contract to the fees mentioned during negotiations or in advertising materials. If there are discrepancies, ask the dealer to clarify or remove them.
Research online: Check out resources like CarEdge to get an idea of what fees are typical for your area and vehicle type. This calculator and this guide to doc fees are great places to start.
Need some help? Our Car Coaches are ready to assist today! Learn more about how to get started.
Fake Fees to Avoid
These are the most common hidden fees you shouldn’t feel pressured to pay:
Some dealership fees add no value to your car and should be included with every new and used car at no additional cost. These are essentially fake fees that solely exist to make the dealership more money. Always avoid these fees:
Vehicle Prep Fee
Dealer Prep for Delivery Fee
Pre-Delivery Service Fee
Pre-Delivery Inspection Fee
Reconditioning Fee
Additional Destination Fee
Cash up-charge
It’s very important to remember that these fees add no value at all to your car, whether new or used. All of these so-called services should be included in the selling price of the vehicle, no ifs, ands or buts. Having trouble negotiating fake fees? Our CarEdge Car Coaches are always here to assist.
‘Almost Fake’ Fees
These car dealer fees add little value despite potentially costing hundreds or thousands of dollars. If you don’t want the product, these fees or ‘add-ons’ are always negotiable:
Etching – You can find it elsewhere for significantly less.
Nitrogen-inflated tires – The benefits are minimal, and air inflation works just as well.
Pinstripes – These are often overpriced and can be done cheaper elsewhere.
Paint protection – A wax job at a local shop will likely be more cost-effective.
Additional dealer add-ons – Beware of dealers trying to upsell you on unnecessary extras.
CarFax fee – If you’re engaging with a reputable dealer, there is no reason why you should have to pay for a CarFax or AutoCheck report.
All of these add-ons and dealership fees are negotiable. Not a single one of them is required, no matter what a salesperson tells you. They’re not like the taxes, title and registration fees that you should expect to pay.
Our CarEdge Car Coaches help thousands of drivers negotiate better deals on their car purchases every month. We’ve seen it all! Here are three examples of ridiculous dealer add-ons and B.S. fees that we’ve helped to negotiate off of the out-the-door price.
Who on Earth would agree to pay $3,000 for a protection package when you could apply those same products for a few hundred dollars elsewhere? Overpriced paint and protection fees are always negotiable.
Some dealers seem to think that if you can afford a new truck, you won’t mind paying a thousand dollars extra for unwanted dealer add-ons. Always negotiate these fees.
Two grand for a safety and security package? Nope, nope and nope.
And then you have this… a whole slew of dealership fees and add-ons that are VERY hard to justify.
Remember, You’re In Control
You should never feel pressured to pay for something that doesn’t add value. Our #1 tip for negotiating car dealer fees is to enter the deal prepared and empowered with knowledge. By being prepared, thoroughly examining contracts, and negotiating wisely, you can minimize surprise fees and secure the best deal possible.
100% FREE Car Buying Help Is Here!
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You don’t need to look far to realize that used car prices have been incredibly volatile over the past few months. Amidst the ongoing global COVID-19 pandemic, many aspects of life have changed, and the automotive industry has been no exception. Over the past few months we’ve seen supply shortages, once in a lifetime manufacturer incentive deals, and used car prices that defy reality.
It goes without saying that 2020 will certainly be a year we never forget for myriad reasons.
To better understand the true impacts the past few months have had on used car prices, the team over at iSeeCars.com, led by Julie Blackley, conducted a research study on used car price changes. Their findings? Both surprising and telling. A lot of vehicles have seen their values increase, while a select few have actually gone down in price (who would have guessed).
We highly recommend you take a look at the full report here, but in the meantime, we’ve distilled some of our favorite insights for you. Without further ado, let’s dive in.
CarEdge Insights
