If you’re looking for a popular used vehicle, you might find that it’s selling for more than it did when it was new. With new cars difficult to get, the price of used cars has appreciated considerably — 40% year over year, in fact.
At the same time, some two-car families are finding they need only one car now that they’re working from home. Other car owners are finding that they can sell a newer car, buy a slightly older one and come out ahead.
“From a consumer point of view, now is the best time to sell your car that you’re going to see for probably many years,” Andrew Hall, vice president of data and analytics at Canada Drives, told PYMNTS while sharing these facts and figures. “It’s been the best time ever, and probably we’ll not see it again.”
Delivering an Almost-Instant Quote
In this environment, Canada Drives, a platform that already offers 100% online car shopping and delivery, has added a “Sell My Car” feature that delivers an almost-instant online quote to owners looking to sell their vehicle.
With this service that’s available in British Columbia, Ontario and Alberta, a potential seller needs only input the vehicle identification number (VIN) and answer some questions about the vehicle’s condition and ownership status. The process takes about two minutes, Hall said.
The Canada Drives platform then delivers the almost-instant quote based on algorithms and machine learning that can consider the relevant market and calculate the value the company will pay.
If the seller accepts, they can drop off the car at one of Canada Drives’ facilities, or the company will pick it up. If the customer has a loan on the vehicle, Canada Drives will facilitate paying off the loan.
“We sign the bill of sale and the payment gets settled by EFT — electronic funds transfer — usually within 24 hours or next business day,” Hall said.
Offering an Online, Remote, Less-Stressful Experience
Canada Drives generally sells the used vehicles to consumers but sometimes sells them to dealers or in wholesale auctions. It has always had the ability to accept a trade-in but has now sped up the process.
“Our release really changes it, in that for either trading or selling us your vehicle, or a few other related circumstances, then we can do this offer process much faster,” Hall said.
The company expanded into selling used cars in October 2020, adding that service to its existing business of generating automotive leads for other dealers.
At the time, the options for buying cars online in Canada were limited. The service has been well received because most consumers were already starting their shopping process by researching vehicles online. Now they can also see what’s available, submit an application for purchase online, get help arranging the financing and then have the vehicle delivered.
“Compared to a typical dealership, generally it’s all online, it’s all remote and it’s considerably less stressful for the customer,” Hall said.
The company expects the trend toward online auto sales to continue. While there will always be customers who want to test drive the car or enjoy the experience of buying at a luxury car dealership, others have a good idea of what kind of vehicle they need and just want to make the transaction fast and easy.
“Customers prefer the experience, the more they do online, in general — we see that with us and we see it elsewhere,” Hall said. “So, we fully think that the trend toward eCommerce will grow for vehicles.”
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