Trade-In Versus Wholesale Cars

I often use the word “wholesale” when I’m talking to people about selling their car in Brisbane.

But I’ve come to realise not many really know what I mean by that.

Let me explain.

For example – above is a sign by an interstate car dealer.

In 90% of cases, car dealers who advertise their cars as wholesale cars, it just isn’t true.

By virtue of the fact you found the ad on CarSales or drove past a car dealership and popped in to see how much it is or to take it on a test drive, means it is a RETAIL car!

Perhaps the word retail is a dirty word in the car business?

True wholesale cars are those which have been bought/sold either in bulk, at dealer auctions or dealer to dealer transactions.

I often sell cars to other car dealers and therefore I do sell wholesale cars.

For example, you might call me today to sell your car for cash.

It might be a 1998 Holden Commodore in fair condition with 300,000kms on the clock.

By all extents of the imagination, this is not really great property to have.

But there is a dealer I know in Brisbane’s south west who buys these sorts of cars, does some mechanical work on them in-house, and if it needs some body work, he has a few employees pretty handy with some filler a spray gun, then sells them.

He makes a profit by then turning around and selling them retail, where I had sold it to him wholesale and made a small margin (say a hundred dollars or so).

That’s the selling part.

Sometimes I might refer to the transaction between you and me as wholesale also.

That is because if you call me on 0411 362 229 today wanting cash for your car, you are bypassing the online advertising sites and selling to me, a dealer, directly.

Trade-ins a similar deal and can also be considered selling your car wholesale.

Because you are selling your car not to the end user, but as a trade for the upgraded car you are buying.

So I hope this explains a little about the difference between retail and wholesale cars in Brisbane.