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Carlotz is a car selling service that individuals can use to sell their vehicles without being involved in the selling process. The company offers a consignment to retail sales in the vehicle selling industry. You register on the platform, make arrangements to drop off your car at Carlotz premises, set the price, and the platform will sell it for you. You can make up to $93,000 for your car.
Pros
- Carlotz makes car selling easy
- Accepts vehicles in any condition
- Carlotz has good car prices
- Updates sellers during the process
Cons
- It charges hefty fees
- It could be slow
Jump to: Full Review
Compare to Other Car Buying Websites
Peddle
Get your free offer instantly via online form or call on (855) 925 4302
$0 fees + you don’t have to pay for towing – Peddle will take care of it
Get paid in check during the pick up for any car (damaged, junk, wrecked)
Wheelzy
Quick car evaluation without the hassle – sell your car within 30 min
Choose a convenient date and time for free pick-up, as soon as next day
Get cash in hand the same day the Wheelzy agent picks up your car
How Does CarLotz Work?
CarLotz Inc. is a company that deals in buying and selling used vehicles, including cars, sedans, trucks, SUVs, convertibles, vans, and wagons.
Selling a used car to CarLotz entails following these steps:
- Step 1: A consumer or corporate consigner registers on the platform and provides the vehicle’s details, including license plate number or VIN.
- Step 2: CarLotz examines the vehicle to determine its reconditioning needs.
- Step 3: The car selling service determines the vehicle’s price and gives the seller an offer. Then CarLotz will follow up and make arrangements for the seller to drop off the car.
- Step 4: CarLotz inspects, cleans, and runs the seller’s vehicle safety report. Individuals can pay a $199 upfront consigning fee and an additional $100-120 fee to detail the vehicle fully.
- Step 5: The car selling website photographs, lists, markets, negotiates prices, facilitates test drives, and sells the car on behalf of a private seller.
- Step 6: When a buyer makes an offer on the car, the seller can accept or reject it. CarLotz deducts a $799 fee from the car’s sales proceeds and gives you the remaining balance via cheque.
How Much Can You Get for Your Car With CarLotz?
CarLotz prices vehicles based on:
- The vehicle’s condition
- Real-time market data
- Auction sales data
- Vehicles’ prices on National Automobile Dealers Association (NADA) and Kelley Blue Book (KBB)
The table below illustrates how much you can get for your car with CarLotz.
| Vehicle Model | Year | Selling Price | What You Get After the $799 Fees |
|---|---|---|---|
| Volkswagen Golf GTI | 2016 | $16, 297 | $15,498 |
| Subaru Crosstrek | 2019 | $26,799 | $26,000 |
| Chevrolet Equinox | 2019 | $29,461 | $28,662 |
| Ford F-250 | 2016 | $35,795 | $34,996 |
CarLotz Reviews: Is CarLotz Legit?
CarLotz is a legit place to trade in a car or sell a car online. The Car buying platform has many positive reviews, on many online review sites.
Car sellers who have used CarLotz to sell their used cars laud the good customer service they receive on the platform. They also appreciate that the site keeps them updated during the car selling process.
CarLotz also has its downsides. One of the most common complaints some people have made about the dealership is that some salespeople fail to provide all the details of a vehicle, discouraging individuals from trusting the platform to buy used cars.
Who Is CarLotz Best for?
CarLotz is best for sellers who want a simplified selling transaction and good prices for their used cars. Sellers only need to take their vehicles, and the platform will help them set the best prices for their cars.
Sellers with newer cars benefit from selling them via CarLotz because they can get more money for their cars. Hence, the listing and after-sales fees will not dent their profits as much as they would for someone with an older car whose value is much less, leaving them with meager profits after Calotz deducts the service fees.
The platform takes care of other details, including marketing the car, DMV paperwork, and collecting the payment on behalf of the seller. Once they sell the used car, the seller will only show up to collect a check from CarLotz’s facilities.
CarLotz Payment Options
CarLotz pays sellers via check; sellers receive the check by picking it up from their facilities once a buyer has paid for it. You can cash in the check into your account or withdraw the money.
What Types of Vehicles Does CarLotz Purchase?
CarLotz purchases vehicles in various conditions, including junk, old, water-damaged, wrecked or used.
How Fast Can You Sell Your Car With CarLotz?
On average, CarLotz takes about 34 days to sell a used car. Each vehicle listing is viable for 120 days. CarLotz tries to sell the car as quickly as possible by aggressively marketing it nationwide, handling potential buyers’ queries, and giving buyers financing options.
CarLotz Fees: How Much Does It Cost to Use CarLotz?
| CarLotz Fees | Amount |
|---|---|
| Upfront consigning fee | $199 |
| Full detailing fee | $100-120 |
| After-sales fee | $799 |
What Are the CarLotz Pros & Cons?
CarLotz Pros
- Eliminates intermediaries from car-selling transactions.
- The car selling site handles the whole car selling transaction, from cleaning, DMV paperwork, listing, marketing, and selling.
- The site buys cars from sellers in any condition, whether used, junk, or damaged.
- Their applications are easy to use.
CarLotz Cons
- You have to pay upfront consigning and detailing fees
- It could take several weeks before someone buys your car
How Good Is CarLotz Support?
CarLotz support is professional, friendly and welcoming. If you run into problems while trying to use the platform, you can send them an email, call their customer service hotline, or contact them on their social media pages.
CarLotz Review Verdict: Is It Worth Selling Car With CarLotz?
Using CarLotz to sell your car is worth your time, as the site takes care of every process for you, including handling buyers. You only take the car to CarLotz, set the price, pay $299 listing and detailing fees, and the company will take care of the rest car selling process for you.
You receive a check after CarLotz has sold your car, making the company ideal for vehicle selling without experiencing the trouble of the conventional car selling process.
Sites Like CarLotz
| CarLotz Alternatives | Selling Fees | Turnaround Time | Best For |
|---|---|---|---|
| Wheelzy | None | 30 minutes or less to sell your car | Selling cars, vans, and trucks |
| Peddle | None | 8 hours | Selling junk cars |
| eBay Motors | $25-95 listing fees. Payment processing fees (depending on your payment option) | It depends on the listing/ auction duration | Auctioning vehicles |
CarLotz vs. Wheelzy
Wheelzy Summary
- Wheelzy stores are open 7 days a week
- Get offer in minutes – (855) 510-1108
- Free towing of your car from your location
- Instant payment via cash or check
Wheelzy is one of the best alternatives to CarLotz to sell your used car. Unlike CarLotz, you don’t have to pay any fees to sell your car to Wheelzy; the site pays you instead.
Also, it could take 30 minutes or less to sell your car to wheelzy, while CarLotz average turnaround time is 34 days, and your listing is valid for 120 days.
Carvana is similar to CarLotz because both platforms provide a simple and convenient way of selling your car without involving third parties.
CarLotz vs. Peddle
Peddle Summary
- Buys used, damaged or junk car nationwide
- Get instant quote on (855) 925 4302
- Free towing within 48 hours after offer
- Receive payment upon car collection
Peddle is another alternative to CarLotz that you can use to sell your used car. The platform has a turnaround time of 48 hours, which is quicker than CarLotz average time of 34 days to sell used cars.
Peddle is different from CarLotz as it doesn’t charge sellers any fees, while CarLotz can charge sellers up to $1,098 in total to sell their cars.
CarLotz vs. eBay Motors
eBay Motors Summary
- Sell 20+ types of vehicle and car parts
- Low listing fees starting from just $19
- List a car for sale in under 10 minutes
- 2 selling options – fixed price or auction
eBay Motors is one of the sites like CarLotz that deal in the sale of used vehicles. It is similar to Calotz because both charge fees, with eBay Motors charging individuals listing and payment processing fees when they use the company to sell their used cars.
However, the two differ because a CarMax user sells a car directly to the platform, while CarLotz doesn’t buy cars- it markets and sells them on behalf of individuals. eBay Motors’ turnaround time isn’t guaranteed, as it depends on how fast someone can buy or place a bid on your car.
Other Sites Like CarLotz
CarLotz FAQ
What Is CarLotz?
The company was founded in 2011 by entrepreneurs Aaron Montgomery, Michael Bor, and Will Boland in Chesterfield County, Virginia. It is present in more than 8 locations across North Carolina, Illinois, Virginia, Texas, and Florida.
CarLotz has sold more than 16,000 vehicles since 2018, and in the first quarter of 2022, retail unit sales were 2,270 vehicles.
The table below shows the number of units CarLotz sold in three years:
| Year | No. Of Vehicles Sold |
|---|---|
| 2018 | 4,077 |
| 2019 | 6,435 |
| 2020 | 6,215 |
The company’s Mission statement reads, “To provide the world’s best automotive retail experience.”
CarLotz offers an enticing value proposition for car sellers, including giving them a seamless and hassle-free selling experience. CarLotz has a market share of around 0.02% of the used vehicle sales market worth $841 billion.
The platform’s achievements include being the first company in the automotive selling industry to offer a consignment to retail sales.
Why should I sell a car with CarLotz?
You should sell your Car with CarLotz because it solves the hassle of selling it yourself. You only need to hand over the car to the site, and CarLotz will sell it for you.
How does the car selling process work?
You take the vehicle to CarLotz, and they will help you set the best price for your car. Then, the site cleans, reconditions, photographs, lists, markets, and sells the vehicle for you. It keeps you updated during the process, and you receive a check once someone has bought the car.
Does CarLotz charge fees?
CarLotz charges a $299 upfront listing fee; it also deducts $799 from the sale proceeds.
How does the platform price cars?
CarLotz prices cars based on their condition, real-time market data, auction sales data, and vehicle prices on National Automobile Dealers Association (NADA) and Kelley Blue Book (KBB).
Can I sell my car with a loan or lease?
Yes, you can sell your car if you have a loan or lease. CarLotz sells the car, pays the loan or lease directly, and writes you a check if there is a balance.
