Several types of companies buy used cars directly from consumers, with online car-buying services and traditional dealerships being the most common. The best choice depends on whether you prioritize convenience, speed, or getting the absolute highest possible price.
Online car-buying companies like CarMax, Carvana, and Vroom have streamlined the process. You typically start by entering your car's information online for an instant cash offer, which is often valid for a set number of days. If you accept, they usually handle everything from the free vehicle pickup to processing the paperwork and payment. This method is designed for maximum convenience.
Traditional franchised dealerships (e.g., Toyota, Ford) also buy used cars, even if you're not purchasing a new one from them. They need inventory for their certified pre-owned (CPO) programs and used car lots. Selling to a dealership might involve more negotiation, but you could potentially get a higher price, especially if your car is a desirable model for their specific brand.
The table below compares the key players in the direct used-car buying market.
| Company | Typical Offer Process | Primary Advantage | Potential Drawback |
|---|
| CarMax | In-person appraisal at a physical location. | No-obligation, 7-day offer; widely trusted. | The offer might be lower than a private sale. |
| Carvana | Fully online via license plate or VIN. | Extreme convenience; home pickup available. | Limited negotiation on the initial offer. |
| Vroom | Fully online appraisal system. | Sells nationally, which can benefit rare models. | Process can be slower than competitors. |
| Local Dealership | In-person appraisal by a used car manager. | Potential for negotiation; immediate sale. | Offers can vary significantly between dealers. |
| Online Auctions (e.g., Kelley Blue Book Instant Cash Offer) | Online tool that connects you to local dealers. | Provides multiple competing offers quickly. | Final price may be lower than the initial quote. |
For the best outcome, get offers from multiple sources. An online offer gives you a strong baseline, which you can then take to a local dealership to see if they can beat it.
