Selling your exotic vehicle comes with unique challenges.
Sure, almost everyone wants to drive a Maserati convertible around, but how many of them can afford to do so? With the price tag that most of these cars reach, you’re eliminating a large percentage of the population looking for a new car.
So overall, you’ve got a small pool of people who can afford your vehicle, mixed in with the fact that this small pool is somewhat rigid in their desires. These two ingredients make a recipe for disaster from the sales side.
Incorrectly Pricing an Exotic Car Can Cost You Big
There are a lot of variables for you to consider when it comes to selecting and negotiating your car’s value. Sure there are some obvious factors like mileage, model, and year that can help inform your car’s underlying value. However, the vehicle itself isn’t the only “value” you need to consider.
When trading an exotic into a dealership, they recognize the turnover on a used exotic can stretch a long time. It will require good promotions and a little luck on their end to turn a profit effectively. Additionally, the car could potentially depreciate during that time. These factors make dealerships more likely to low-ball you in their offers, either hoping you’ll turn them down or that you accept a bad offer so they can make a reasonable profit.
While dealerships consider the factor of time, private individuals consider risk. Purchasing an exotic vehicle from a private seller like yourself is an inherently risky transaction for them.
At the end of the day, you aren’t a car dealer. You don’t have a team of quality control professionals who can sign over a guarantee the car is in ship shape or access to a network of reliable help should there be an issue with the vehicle. For the most part, they will need to take your word (and an inspection report), which comes at a cost to you.
In both scenarios, the car buying party has a clear-cut incentive to low-ball your offers as much as possible. Many times, this effectively makes their target price below the actual underlying value of your car. That could be a difference of hundreds of dollars on a typical vehicle transaction. With an exotic, you might be leaving thousands of dollars on the table.
Long Sales Cycles Are Costly
So these two main factors so far – buyer availability and pricing concerns – work together to create a third, painful challenge with selling your exotic: a prolonged timeline.
Finding a qualified car enthusiast to buy your sports car can take weeks or months, only to lead to drawn-out back and forth negotiations that still stagnate in the end, leaving you back at square one. Additionally, you still need to pay extra special attention to every prospect’s finances and the ability to pay you what you are asking. It is not unheard of for potential buyers to test drive exotic cars only to “ghost” you when serious money conversations start.
On top of that, if you aren’t willing to budge from what you know your car’s value is, it will take a long time to find a customer who will meet you there.
While you’re trying to find a way to offload your car, you are still dealing with the day-to-day expenses of maintaining an exotic. That includes car/lease payments, repairs, tune-ups, and overall depreciation.
This is where selling an exotic is most challenging: you’re steadily losing money every day you don’t make the sale.
Methods for Selling An Exotic Vehicle You Own
Once you recognize what makes the selling process for an exotic different than a standard car, you can select the path forward that best suits you.
For those who outright own their exotic, there are three main ways you can liquidate your vehicle, each with their pros and cons.
Trade-in With a Dealership
The first option available to you is taking your car straight to a dealership to field a cash offer.
Pro: Relatively Quick and Reliable
Dealerships are well-run machines, and that is especially true for high-end organizations like Audi, Bentley, and Lamborghini. They have the resources to purchase anything they see as a substantial investment, as well as access to a broad distribution and financial services network.
With these institutional advantages in their corner, selling your exotic to a dealership is usually a reliable way to liquidate your exotic car quickly.
Con: Less than ideal return
The main problem with taking your exotic to a dealership is you might leave thousands of dollars in value on the table. Dealerships make lower offers because they know the longer sales cycle associated with an exotic vehicle, and they want to price it accordingly. Additionally, most dealers aren’t interested in having a different brand car on their showroom floor.
Ideally, you would bring your car to the same brand dealership as your make and model (taking your BMW to a BMW Dealership, for example). They are going to be the most willing to take your vehicle off your hands and will likely be able to turn around and sell it quicker than other dealers, which may help you get more money in return.
Still, the dealer’s position allows them to be comfortable making low-ball offers and sticking to their guns.
You can also use consignment professionals to market and sell your vehicle on your behalf, but this typically results in a substantial commission.
Private sale is another viable option for those who don’t mind putting in some extra leg work.
Pro: Most flexibility
In a perfect world, you’d be able to quickly sell your exotic vehicle to a responsible buyer for precisely what it is worth. However, the process is a bit more nuanced than that.
When privately selling your vehicle, you have the most flexibility. You set pricing, handle all promotions, and have the final say in who gets to take over your exotic.
Bear in mind that with flexibility comes responsibility. Completing a good sale requires masterful marketing and negotiating skills, as they will be vital in determining your return.
Con: Difficult & Time-Consuming
While it sounds nice to go out and grab a buyer real quick, the reality is quite different.
Privately selling your exotic vehicle is extremely difficult. It would be best if you did extensive research on the right price for your car, promote your car through exotic listings (all of which cost a fee), and masterfully negotiate the price – potentially with someone more established in the luxury vehicle world. Hiring appraisers and purchasing listings is an excellent way to make your process go a little smoother, but these are unwanted expenses when you’re trying to sell.
To take it one step further, if your buyer needs a loan or you still have payments due on your car, the transaction could quickly devolve into a financial mess.
Since it can be challenging to find an interested and qualified buyer, selling privately is a long-term route to take. The process can drag out for months or even years, and you lose value in your car with each passing month.
Work With a Licensed Exotic Purchaser
The modern method that is most effective for getting you a great return on your vehicle without the time and hassle is selling your car to an online buyer.
Pros: Easy, Quick and Fair
The world has evolved considerably in the last 50 years, and the luxury car market has evolved along with it. No longer are dealers and buyers subject to localized listings and geographically convenient locations. Nowadays, there is a worldwide network of buyers and sellers that trade exotics across national and international boundaries every day.
With the ease of communication and transaction powering this new network, top luxury car buyers have developed advanced ways to solve the most considerable drawbacks of traditional exotic car exchanges.
Similar to dealerships, exotic car buyers like We Buy Exotics have institutional advantages. There is always plenty of cash available to make a reasonable investment in a vehicle. Additionally, their agile and highly experienced staff is able to offer you the absolute top dollar for your luxury or exotic vehicle, and their goal is to make the process as smooth and easy as possible.
In most circumstances, you receive your appraisal within one day after you enter your VIN, you are wired the payment the moment you approve the transaction, and professionals come pick-up your vehicle from your home at your convenience.
And while those institutional benefits make your life easier, they also cut down on inefficiencies in the sales process. That means your cash offer from a company like We Buy Exotics will likely exceed that which a dealer will offer you.
Overall, choosing a company like We Buy Exotics offers convenience and efficiency without sacrificing value along the way. It’s the modern, specialized approach to selling your exotic vehicle.
Methods for Selling An Exotic Vehicle You’re Leasing
While it is more common to think about selling a car that you own outright, you can also exchange an exotic car you are leasing.
This process works a little differently because there are some added layers of complexity. Before you move forward, you should make sure you have some equity in your car.
To find your equity in your leased car: Get an appraisal from We Buy Exotics or a similar company. Kelly Blue Book is another popular resource that can provide you with a ballpark estimate. Once you have the appraisal, find the residual value of your lease contract (this is the same as the buyout amount you would pay at the end of the lease). Subtract your residual value from the appraisal price, and you have an educated guess for your equity. It’s important to note that this value is likely a range that is subject to negotiating factors.
Now, if you want to turn that equity into cash or another exotic vehicle, here’s how:
Sell Your Leased Car to a Dealer
Similar to selling a car you own outright, selling your leased car to a dealer is an easy way to step out of a lease agreement.
Since these are professionals who understand these sorts of transactions, they’ll be able to guide you through the steps of transferring a lease. The team will help you calculate your equity and provide a cash offer for your exotic.
Once again, although this is a quicker route than privately selling your exotic, don’t expect to receive full value for your lease agreement.
You can curb this a little bit by making you go to a dealership with the same brand of car you’re looking to unload.
Pay Your Buyout Fee and Sell It Privately
Almost all leasing contracts allow you to buy out the car at any given time during your leasing period. You can either purchase this outright with cash or take a loan to cover the expenses you incur. Either way, you need to buy the car for the ability to sell it privately.
Once you’ve gotten out of your lease, the process is identical to the one listed above. You are responsible for pricing, promoting, marketing, screening, and selling your exotic. This process produces a longer sales cycle and a potentially higher reward, but it does run the risk of gouging money over time or ending in an unfair deal.
Swap Your Lease With an Exotic Buyer
At companies like We Buy Exotics, exchanging your lease agreement for its cash value is the standard practice. This process is an incredibly efficient way for you to liquidate a lease agreement you no longer want.
Companies will quickly analyze your lease agreement, determine a value for your lease, and send you the cash for it all in the same day (if you want to move that fast). Afterward, a professional comes to pick up the car at your convenience anywhere across America.
The bottom line is this: You can swap your lease agreement for cash today without leaving your home – a 100% hassle-free process
Choose The Efficient, Modern Option
Whether you’re selling an exotic car you own or swapping a lease, the best method for getting fair compensation for your vehicle is through an international online car buyer.
At We Buy Exotics, we make the selling process as fast as the cars you like to drive. Selling your car and receiving your cash all happens within an efficient four steps:
- Submit your VIN, model and make information
- Receive your cash offer in just minutes
- Get your cash moments after you sign off on the terms
- Schedule the pickup time
No matter where you are, you can receive a cash offer within minutes, and no matter where you’ll be, you can schedule a convenient pick up to finalize the exchange.
Submit your info today to get your instant cash offer!