Where Do Used Cars from 4S Store Trade-ins Generally Go?

[ValerieFitz]

Used cars from 4S store trade-ins generally go to the following places: 1. In-store sales: Most 4S stores have their own used car departments. If they receive some high-quality used cars, after refurbishment, the 4S store will directly place them in the used car display area for sale. 2. Resale to used car dealers: Except for a small portion of high-quality used cars that are kept for direct sale in the 4S store, the rest are transferred by the 4S store to partnered dealers in the used car market to earn a portion of the price difference. 3. Sold as parts: For some used cars in poor condition, the 4S store is likely to dismantle them into parts and then sell them to repair shops and some used car dealers. These dismantled parts are what the industry refers to as "salvage parts."

[JaylaRose]

When it comes to the destinations of trade-in cars at 4S stores, I've seen too many cases. These vehicles mainly follow two paths: First, those in good condition are directly retained by the 4S store for refurbishment and sold as certified pre-owned vehicles in the showroom, which allows for higher profit margins and enhances brand reputation. Second, they are transferred to partnered used car dealers—some stores hold regular auctions for dealer alliances or list them on platforms like Youxinpai for nationwide bidding. A dealer I know specializes in purchasing such cars, refurbishing them, and reselling at a 30% markup. There's also a lesser-known route—particularly old cars are sold in bulk at low prices to repair shops for parts dismantling or flow into county-level used car markets. However, major brands are increasingly inclined to establish their own used car channels nowadays.