The Wholesale Game

I'm currently selling my 2018 truck and have encountered strange inquires as one would imagine in the world of craigslist/offerup/autotrader. But I've stumbled on a buyers market I had no idea existed: the wholesaler buyer. Now I'm not naive to the wholesaler, but I had no idea of the extent of their inner web for cars.

It's not necessarily a cautionary tale, but it's definitely nice to know who you are selling to. Here are the cues of a wholesaler:

-Cash only bid that is usually 3-5k below your asking
-Doesn't care if you still have a warranty or not
-Doesn't care to test drive
-Only worried about the exterior/interior condition and tire condition


Don't worry about driving to meet these people - have them come to you.
Don't worry about washing your car prior to the meeting - they don't care

Prepare to walk away if you don't get your price; they are lowballers and firm on their price, afterall they are going to flip the truck for small margins ($500-1000).


I'm curious to know how other have sold their trucks, respond in the comments if you have had other methods that have been successful to get top dollar and avoid wholesalers.

 

There's no real way to avoid them. They're like robocallers. They just keep coming atcha' no matter what you do.

 

Carvana/Vroom...still wholesalers but didn't lowball me at all and the whole process took less than an hour of my time cumulative. They were about $1k under my initial idea of price and I didn't have to hassle with anyone who would have most likely low balled me after test driving anyway.

 

I would consider Carvanan and Vroom as passive wholesalers; you show up, they quote you significantly low and then they cut you a check. Sort of a give-up option for the seller. The buyers market that I'm talking about in my original post is the active wholesaler. They respond to classified ads camouflaged as a private buyer (only had one guy tell me directly that he was a wholesaler). Here's my dilemma with pricing and wholesalers:

1) Started with a top price of the market for my trim - $35k (high kbb/carguru estimate)
2) Then reduced it to $33.5k because of a few dents/scuffs on the exterior
3) Reduced it further to $33k because it needs new tires

Passive Wholesalers arecoming in at 25-28k range
Active Wholesalers are coming in at 30k, and firm at 31k because of the minor dents/scuffs

The Dilemma: Fix the dent/scuffs and buy new tires hoping a true private buyer comes around or settle for 31K with a wholesaler?

 

I'm starting to realize this, thing is that I've gotten better at identifying them so I can have a better game plan.

 

You just described the whole world of buying and selling vehicles. A dealer does this. Carvana does this. A used car lot does this.

Also, lowball offers are subjective. What is low to one is fair to another. What is fair to one is great for another.

 

Exactly, but this the first time I sell a vehicle in the private market (I've typically traded-in). In the private market, I was expecting more private buyers, but most of my inquires have been from wholesale vultures - this was the purpose of my post.

 

Because you're a TW member, I'll offer you $29k right now. Firm. I will pay only in quarters, nickels and dimes though. No bills!

 

$28k isnt much of a lowball considering these trucks were being purchased new for $35k. Under normal market conditions I could see you getting maybe $30k with the right buyer but $28k due to the need for tires and the scuffs you mention.

The used market is higher now due to a lack of new car availability so your market is mostly going to be people who are impatient or can't wait.

EDIT: For grins I put in my truck for KBB and the private party value without my mods is $38k. I paid $36k brand new from the dealer in 2016. Would be cool if I could get $38k but you can still buy a brand new Tacoma with the same options for the same price.

 

I'll consider

 

hey man! I want your truck! I have the cash in hand...thing is, I'm a merchant marine and I'm out to sea, currently.

But we can still make a deal... Here's what I have to offer...blah blah blah yodio schmock blah...

 

Wow, maybe I need to list in Colorado

 

FYI this is how businesses make money.

 

The private market has been like that for... at least 15 years. The internet has changed the way we do things for sure.
When I was a youngster, we had for sale signs sitting on corners, spend $5 for an ad in the weekly local trader. That was when you had private to private commerce.
Now, wholesalers and lots will scan the nation, looking for the few private sellers that exist and lowball them.

Personally, I would stick a for sale sign in the window. Low tech way of assuring you are dealing with an interested buyer.

 

be careful...sound advise nowadays can be misconstrued...

 

Back when private sales (Well, most were private sales), got listed in this book:

 

I know, you're missing the point - there are no private buyers in the private market. It's littered with wholesale vultures who are trying to make money rather than the honest Tacoma buyer trying to get a sweet truck.

 

I bought my landcruiser from one of these people. Dude had a full-time job, he just did this on the side to make some extra cash, it can be good and bad. I didnt know this until I went to actually buy the vehicle, he also wanted cash because he was gonna immediately buy and flip another car but they arent necessarily a bad thing though frustrating to a seller.

 

Ran into a lot of flippers when looking at used vehicles. Another giveaway (when buying) is usually the title will have been pre-signed by someone (who isn't available for contact), with the buyer line left blank for you to sign. They do this to get around paying the tax/registration since they just want to flip the vehicle quickly. Technically illegal I think, but the CA DMV didn't bat an eye when I transferred the title.