We Buy Any Car offers a quick, simple, and guaranteed sale of your vehicle. You do not have to navigate the realm of private car sales, nor do you need to haggle for a part exchange.
This has left a lot of people wondering how We Buy Any Car makes their cash. What happens to your vehicle when they purchase it from you?
In this guide, we will explain everything you need to know about how this car buying service, how it works, and how they make a profit so you can have complete transparency when using this service.
How does We Buy Any Car work?
As the name indicates, this car buying company will purchase any vehicle from you, whether it is an old or new model. But how does the service actually work?
Well, the good news is that you can simply organise the sale of your car online, which makes it very quick and easy.
You will need to have an appointment so that the car can be inspected, but the process could not be easier. With the online valuation, you can get a price before you go through the hassle of meeting up with a company representative.
Online valuation
It is quick and easy to get an up-to-date valuation of your vehicle. All you need to do is head to the We Buy Any Car website, where you can enter the registration number for your vehicle to begin your free car valuation.
You will then get an online quote or valuation based on factors such as seasonality, demand, and market value.
If you are happy with the valuation you have received, you can book an appointment at one of the 475+ branches across the UK to have your vehicle inspected.
How accurate are We Buy Any Car valuations?
The valuation of your vehicle is based on the number of previous owners, mileage, and model. However, while the online valuation is ‘guaranteed’ for seven days, it is not considered an offer, so do keep this in mind.
This means that you could receive a lower offer than the valuation you receive on-screen.
Several years ago, the Office for Fair Trading revealed that 96 per cent of customers had received less for their car than what they were originally quoted at We Buy Any Car.
In response to this, people have been urged to make sure they are more truthful when getting a valuation, i.e. input details about any faults or damage, such as a scratch.
This should give you an accurate valuation.
Inspection process
If you are happy with the valuation, you can arrange an appointment at one of the We Buy Any Car branches in the UK. There are more than 475 branches, so you should be able to find one that is local for you.
Prior to attending your appointment, it is important to gather the documents that you will need to bring with you. This will help to make the process of making a confirmation of your valuation and selling your vehicle much quicker.
So, what documents do you need to bring?
- You will need your V5 document (or logbook)
- Your car’s service history, if applicable
- Your ID, e.g. passport or driving license
- Proof of your address from the last nine months, e.g. bank statement, council tax bill, or utility bill
- Your UK bank account details (so they can pay you)
If there is outstanding finance on the vehicle, make sure you bring a letter from the finance company that confirms their settlement figure.
How does We Buy Any Car make money?
You may be wondering what We Buy Any Car does with your vehicle and how they make a profit. So, let’s take a look.
They offer less than market value to make a profit
In most cases, the vehicle you sell is then going to be re-sold, either to an individual or trade.
This can be a direct sale or via British car auctions. Because of this, We Buy Any Car will offer you a lower valuation than what you would be able to receive if you sold privately.
The key with We Buy Any Car is that they offer guaranteed and quick sales, which makes them highly appealing to individuals who want or need to sell their vehicle as quickly as possible.
They can, therefore, offer a slightly lower valuation than what you would get if you want down the private route because they take away the hassle and time associated with this.
Transaction fee
There is a transaction fee applied to the sale of every vehicle, except for cars that have a valuation below £99.99.
If your used car is valued between £100 and £3,999.99, you will be charged a transaction fee of £49.99.
For vehicles valued between £4,000 and £4,999.99, you will be charged a transaction fee of £59.99.
For cars valued at over £5,000, you will be charged a transaction fee of £74.99.
So, this is another way that We Buy Any Car makes money!
Pay to receive payment faster
We Buy Any Car also offers a faster payment service, which comes at an additional cost. There are two options here.
The first is the Next Working Day Payment, which costs an extra £24.75. If you choose this, the company will arrange for you to receive your payment the next working day after the day on which the car has been sold to them.
The second option is called Premier Payment, which costs an extra £29.75. This is known as a Faster Payment, which should reach your building society or bank within two hours after the sale has been completed.
Please note that not all customers will be eligible for Premier Payment. If further validation checks are needed, for example, if you have only owned the vehicle for a very short period of time, then you may not be able to use the Premier Payment option.
We Buy Any Car – The pros and cons for sellers
There are advantages and disadvantages associated with using We Buy Any Car, so let’s take a look at them in more detail:
Pros:
One of the main reasons why a lot of people choose We Buy Any Car is because they are able to arrange a quick, guaranteed sale of their vehicle.
This is much more convenient than having to list your vehicle online and entertain private viewings. It is also more convenient than haggling with a car dealer over part exchanges.
No matter the make, model, or condition of your vehicle, you can arrange a sale with We Buy Any Car. This means you do not have to spend money on improvements before selling your vehicle.
You also do not need to worry if you have an old car or a model that is not in high demand, although this is likely to be reflected in a lower valuation, so keep this in mind.
However, when it comes to valuations, it is great that you can receive free online values for your used car. It only takes one minute to enter the details about your car, and you will receive a valuation.
This helps you decide whether or not you feel it is worth continuing with the sale and taking your car to one of the branches for an appointment. If you are not happy with the valuation, you do not need to waste your time.
Finally, a lot of people like the fact that they do not have to deal with any pushy sales tactics when dealing with We Buy Any Car.
If you decide that you do not want to sell your vehicle, this is your prerogative, and you won’t be pushed into making a sale. The same cannot be said for private purchases.
Cons:
There are a few drawbacks that you do need to be mindful of when using the We Buy Any Car. Firstly, you won’t get the highest possible price when selling your vehicle.
The nature of the service means that the company then needs to sell your vehicle, and so they will always make sure that there is room to make a profit themselves.
Therefore, if time is on your side, you can sell privately, and this will usually result in a better level of profit, although there is no guaranteed price offered.
Aside from this, it is important to note that the valuation you receive online is not an offer. Although the company does guarantee the valuation for seven days, this does not mean it is an offer for your vehicle.
As a consequence of this, you may receive a lower offer than the valuation. This is something a lot of people do not realise, and so they often end up feeling disappointed when they receive an offer.
You also have to pay more money in order to receive your payment quickly, and this is not possible for everyone. If We Buy Any Car decides to do extra checks, you will need to wait for these to be completed first.
Finally, there is no free collection service offered by We Buy Any Car. This means that you will need to take your car to a local branch, and then you will need to organise transport back home.
Can you negotiate with We Buy Any Car?
You may be wondering whether or not it is possible to negotiate with We Buy Any Car so that you can secure a better deal. From our experience, there is often a very small amount of wriggle room when it comes to the valuation.
While you cannot expect to negotiate a much higher price, it is worth speaking with the agent to see if you can squeeze a bit extra out of the valuation. After all, you don’t get it if you don’t ask, right?
FAQs
Who owns We Buy Any Car?
We Buy Any Car is owned by an organisation called Pennine Metals B Limited. This parent company was founded back in 2010.
What happens to a car sold to We Buy Any Car?
If you sell a vehicle to We Buy Any Car, it is supplied back into the trade. This means that it could end up eventually being purchased by an individual buyer or a trade.
Is We Buy Any Car legitimate?
Yes, We Buy Any Car is a legitimate business. They have served more than two million customers online. They also have an impressive score on Trustpilot of 4.6 out of 5 stars.
Final thoughts
So there you have it: everything you need to know about how We Buy Any Car works and how they make money.
The company has a number of different revenue streams, from the transaction fee itself to the money made by selling the vehicle.
If you are thinking about using this service, it is ideal for those who want to make a quick sale. If you are desperate to offload your vehicle, We Buy Any Car offers a quick, guaranteed sale, which is highly appealing.
However, if you have time on your side, you may prefer to haffle and negotiate a private sale so that you can ultimately make more money.
Ricky Willis is the original Skint Dad. A money-making enthusiast, father, and husband to Naomi. He is always looking for unique ways to earn a little extra.
