Opinions on the Private Party Dealer Concept

[B D]

http://privatepartycars.com

I would like to hear your opinions on the business above, basically a hosted lot for sellers to display and sell their vehicles to buyers. Sellers lease a space to sell their car and the business washes the car, helps with DMV paperwork, bill of sale, and financing etc. A space leases for about $300 for 35 days.

Some +/- points I see:
Need foot traffic
Difficult to get started
No pushy salespeople
Saves money
Meet buyers in secure location not at home
Buyer meets seller and gets to ask questions
Not limited to running cars or classics or even bikes and boats
Buying cars for cash below wholesale and turning at auction


Would you use this type of business to sell your car?
Would you buy a car from this type of business?
Do you perceive the business model to be friendly/non-threatening?

[pbs911]

Would you use this type of business to sell your car?
Would you buy a car from this type of business?
Do you perceive the business model to be friendly/non-threatening?

No.
No.
No.

There are a couple of similar dealers on Harbor in CM. I have no experience with such dealers, but doubt they could provide any information on the car (unlike the owner) and would be in for a cut. It seems the motivation would be to NOT sell cars, etc. based upon the income generated by keeping the car on the lot.

[B D]

Originally posted by pbs911
No.
No.
No.

There are a couple of similar dealers on Harbor in CM. I have no experience with such dealers, but doubt they could provide any information on the car (unlike the owner) and would be in for a cut. It seems the motivation would be to NOT sell cars, etc. based upon the income generated by keeping the car on the lot.

The buyer works directly with the seller on price, and the buyer can ask and request info on the car from the seller. As for the other dealers they are consignment dealers. Consignment is a little diffrent than this model, with consignment the dealer gets a % on the sale here the dealer gets nothing.

As far a not being motivated to sell cars that not 100% correct. If you sell a car before the 35 day lease is over you get to lease the spot to someone else again. Anyways it's supposed to be a no pressure to sell atmosphere, the cars should sell themselves.

[legion]

Hmm...$300 for 35 days. Doesn't make a whole lot of sense for a relatively cheap car.

Also, if someone is selling their car and it is new (or pricey) enough for this method of sale to be profitable, then they probably didn't want to take a hit trading it in--so they don't want to take a hit doing this either.

Just my thoughts.

[kaisen]

Who can NOT use their car while trying to sell it? Particularly if they are more expensive cars, i.e. ones where $300 to sell it is appealing.

I'll tell you the answer: CURBSTONERS

Guys without dealer's licenses who are 'flipping' cars. These shady guys posing as private party sellers can very quickly earn you a negative reputation.

There is a lot around here that is only open Saturday. It costs $50 to run it each Saturday until sold. More private party cars are attracted then. It is also 'open' Sunday, but they don't advertise it that way because of the laws on Sunday. Private parties can sell any day of the week.

E

[B D]

Good Input:

True $300 for a cheap car maybe a stretch, the truth is most people have no idea what there car is worth and usually overestimate. If the costs are high or they need cash soon offers will be made on cars to wholesale or they can sell somewhere else.

As far as a seller profiting on the sale of a high end car that is the seller’s choice. They can trade it in and loose $1,000s, spend $75 in classified ads and receive junk calls and tire kickers, or the $300 and know the car is always clean, safe, and available to be seen. Many people especially single women want to sell there cars but are very uncomfortable meeting strangers and are unfamiliar with paperwork and how to safely complete the transfer of funds. Also many people here in So Cal have $ but no time.

[kaisen]

So you think they have another car to drive while they leave their 'expensive' car at the lot to sell? Probably not.

E