Pros and Cons of Buying and Selling Cars Online

The automotive industry has evolved so much since its inception. Before, the only way to buy a car was to go to an automotive dealer or an auction house—both of which were okay, though relatively inconvenient for people who don’t have the means to go to those places.

In a country where buying and selling cars is fairly indicative of its traffic situation, It’s no surprise that many people use different means to secure their own cars.

That being said, for anyone who plans on either buying or selling cars online, here is a list of pros and cons to consider!

PRO for Buying – Unlimited Choices

Unlike the limited selection of car dealers, often narrowed down to vehicles from a single brand, you can search for whatever vehicle you want and even try to specify your choices depending on price range or current situation.

It’s also fairly easy to look for brand new vehicles, secondhand ones, or customized ones. This gives the buyer a big amount of freedom as to what they will buy.

PRO for Buying – No Sales Negotiations

We all know that as buyers, there’s nothing more that we hate than a sales representative that continuously badgers you while you’re trying to decide on what to buy. Online shopping shuts off this irritating situation as you’re doing it in the comfort of your home.

PRO for Selling – Incredible Reach

With the help of social media and the internet in general, it’s fairly easy to find leads for the vehicle that you’re selling. By utilizing the Facebook marketplace, and many other social media platforms such as Twitter, Instagram, as well as numerous 3rd party buy and sell websites such as Lazada and Shoppee, anyone can sell anything with ease.

Oftentimes online car sellers don’t have to look for buyers because they will be the ones who will message you and finalize the negotiation for you.

PRO for Selling – Qualified Leads

As mentioned above, selling cars online would usually lead to buyers messaging you as soon as they’re interested in the vehicle. This would usually mean the people messaging are qualified leads who are already currently looking for a vehicle to buy.

CON for Buying – Personal Finances Only

One of the most unappealing things about buying online is that you would usually not have any option to pay for it through loans. This means you should already have a set budget of cash that you can readily use for payment.

That being said, some online sellers allow payment through credit cards—so a notable step before this is to first know if the seller accepts a card for payment.

CON for Buying – Receive Vehicles as is

When you buy a car from a private seller, that means you’ll get the vehicle the way it is presented. You won’t be able to purchase a warranty for it. The car, no matter what condition it is in, is what you will get.

This can be dire if you receive a car that looks good in pictures but is absolutely wrecked in real life—which leads us to the other CON of buying;

CON for Buying – Fraudulent Sellers

Of course, as with most of the internet, you can’t really trust every seller. Because of how easy it is to set themselves up as a seller, there is a good probability that some people are scammers. That being said, people who are keen on buying online should perform some precautionary measures such as verifying the sellers and confirming the condition and current state of the vehicle being sold.

CON for Selling – Requests for Negotiations

Anyone who has tried to sell something expensive through social media would probably have experienced multiple buyers haggling down the prices. Sometimes this can even lead to destructive criticism when some buyers would leave negative reviews just because sellers don’t agree with the negotiations.

Fortunately, this is one of the easiest ones to overcome—once you build yourself as a trusted seller, be it through certifications, honest product overviews, and transparent communication, the negotiations would probably lessen and you will attract only those who are qualified to buy the cars.

Key Takeaway

Operating a buy and sell business in the Philippines is a very fickle matter. Cars, in particular, are a little bit harder to deal with because of its high price and it is a relatively hard financial decision. That being said, for anyone who wants to try it out, be sure to study it profusely. Bear in mind the pros and cons provided in this article as you try and operate your own car buy and sell the business!

A businessman should be ready for anything, and the best way to be prepared is to know the good and the bad of what you should do.