How Car Buying Companies use Apps to their Advantage not yours.
Since vehicles are in short supply we see large car buying companies in search of inventory using technology by way apps to entice sellers to sell them. These companies facilitate a sale through the app that can be misleading compared to the more traditional method of physical inspection by appointment. Although it sounds convenient and the latest shiny object, you could be selling your vehicle for far less than what it’s worth. Why? The app is a way to attract a seller to do business with the company by showing an over inflated estimated value that may be unrealistic. Yet to finalize the transaction, there must be a physical inspection to determine final price, certain to follow the never ending deductions for flaws. For instance, not having two keys could cost you $300. Dings/Dents further reduce the value $200-500. Bumper scratches up to $500-$1,000. Mechanical noises upwards of $1,000. In the end, the difference between initial app value and purchase price can be drastically different.
Wait a minute…doesn’t consumer sites such as Kelley Blue Book provide a guide for vehicle values? Yes. Remember your vehicle is not brand new and Kelley accounts for flaws in their estimated pricing. Their guide takes in account for “Normal Wear-and-Tear”- scratches, dings/dents, one key, some mechanical noises, etc. This guide also establishes the value or range by a condition metric of “Excellent,” “Very Good,” “Good,” “Fair,” and “Poor.” This way the average person can establish the condition and talk about it.
So why allow these companies to double-dip? Well, it’s psychological - a combination of things. It’s the shiny new object syndrome, the convenience and the desire to get it over with, all come into play. When a seller goes out of their way to make an appointment, internally they feel pressured to make a sale, even if it’s at a lower price to get it over. Companies know this and use it to their advantage – a bait and switch.
Who do you want to do business with anyway? Find a trustworthy dealer or buying service that need not employ these tactics. A smaller company like Ion Cars has a reputation of being honest with integrity and without an underhanded agenda. As many of our customers say, “ion cars takes a Laisse Faire approach.” That is, “let you do.” In other words, “No pressure!” We make appointments in San Francisco, Oakland and the Bay Area, evaluate vehicles in 15-minutes or less, provide a buy offer and pay on the spot. We use Kelley Blue Book as a guide along with market trends and auction values to intelligently ensure our customers get the proper value for their vehicles. Call us today! 415.255.2800 or 510.625.2008
