880 Walkers Line, Burlington, ON, L7N 2G2
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What Happens to a Car after a Dealership Buys it?

What Happens to a Car after a Dealership Buys it?

If you sell your car to a dealership or trade it in, what happens to that car? It’s not something we typically worry about. After all, we’re usually trading in or selling to get a new car, which is where our focus rightly lies. But what does happen?

 

Usually one of three things happen to a car after a dealership buys it:

 

  1. They are sent to auction
  2. Sold to a car wholesaler
  3. Resold by the dealership

 

At the moment, the majority of cars we buy or trade in are resold by us. The shortage of used cars means we are keeping most of them, reconditioning them and reselling them.

 

Cars sent to auction

 

Once we have a few cars sitting around, we’ll send them all to an auto auction. This is where smaller dealers and individual car resellers go to buy their own stock.

 

It’s much like you would expect an auction to be. Cars are all lined up in the parking lot, you can inspect any car(s) you’re interested in and then have to wait for their lot to be called.

 

Once it is shown, you bid in the same way you would at any auction.

 

Some car auctions are open to the public and some are not.

 

Cars sold to a wholesaler

 

Car wholesalers buy cars in bulk from dealerships, fleet managers, car hire companies and other sources. They will then either sell them online via ‘supermarket’ style websites, through their own web portals or sell them at auction.

 

Much depends on the wholesaler and their business model.

 

Cars resold by the dealership

 

If you sell your car to our dealerships, we recondition them and resell them. It’s like the ultimate in recycling!

 

We will buy your car, send it to our workshop for a thorough checkup, make any repairs, service the car and perhaps valet it, depending on its condition.

 

Once it has been fully reconditioned, we will then place it on one of our dealership lots and online.

 

The reconditioning could take a few days or over a week. Much depends on the amount of work required. If parts are required, there may be a short wait while those parts arrive.

 

Typically, if you sell a car to us, we’ll have it reconditioned and ready for sale within 1-2 weeks depending on the above.

 

As we said at the top, this is what happens to most of the cars we buy right now. The shortage in new and used cars means there is more demand than ever for good quality cars.

 

We would rather help our neighbours find a new car and stay mobile than send the cars who knows where to benefit someone else!

 

So that’s what happens to a car after a dealership buys it. In normal times, it would be a mixture of those three options but right now, we keep and resell the vast majority of cars we buy.

 

For any questions or concerns, please don't hesitate to contact us here!

 

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