Dealers buying Private Sellers on AutoTrader (US)

Notes about Autotrader

AutoTrader actively limits and blocks dealers from engaging with private sellers.  There are different speculations as to why, but they make it very difficult.

Dealers love AutoTrader listings!  This could be because 100% of them have VINs, or perhaps that AutoTrader does a nice job of providing market insights to guide sellers to price to market, or a combination of both.

Considering there is limited engagement with the listings, it is important to follow the steps below to avoid getting blocked.  Key points to follow:

• Become a verified buyer (use a free email - not your dealership email - like Gmail).
• Limit the engagement to a handful of daily listings (most impactful cars only).
• Don't message sellers with your phone number or email directly (post a photo of a business card or a sticky note).
• Vary connection - if you've been blocked from your store, don't set up an account or access the website from your dealer's wifi. 
• Consider the mobile app - if still not successful, create a fresh account with someone who has a driver's license, on a new device, and engage via the mobile app.

• • Become an AutoTrader verified buyer by following the simple steps below
    • Create an account. Try to use a personal email versus a company email. 
    • A verification email will be sent to the email provided
    • Scan the QR code and upload a picture of your driver’s license 
    • Photos will be taken of your face to confirm your DL matches the photos
    • Enter in your email address and a valid phone number
    • From here, you’ll be able to make an offer, chat with the seller, test drive the vehicle or start a purchase
    • Consider doing this from a cell phone, not on the dealer's Wi-Fi and not from a device that has been used by a blocked account.

Target Inventory

• • Identify Target Vehicles: Determine the optimum inventory that will deliver the highest ROI, that you have presold, or inventory on a hit list.

Evaluating Listings

• • Review Listings: Thoroughly review the listings, paying attention to details such as condition, mileage, service history, and seller notes. 
  • Vehicle History Report: A VIN is likely provided, run through Carfax and/or AutoCheck to check the vehicle’s history.

• • Initial Contact: Reach out to the seller via AutoTrader’s messaging system or provided contact details.
    • Introduce yourself.
    • Express interest in the vehicle and ask if it is still available.
    • Request more information or additional photos if needed.

• • Detailed Questions: Ask specific questions about the vehicle’s condition, maintenance history, reason for selling, and any known issues.

Valuation and Offer

• • Vehicle Valuation: Use tools like Kelley Blue Book, NADA, MMR, or your dealership’s pricing software to determine a fair, market-based offer.
  • Make an Offer: Present a competitive but reasonable offer to the seller. Be prepared to justify your offer with the data you’ve gathered.

• • Pre-Inspection: Bring a checklist to ensure a thorough inspection. Include items like exterior condition, interior wear, engine performance, and functionality of features.
  • Test Drive: Conduct a test drive to assess the vehicle’s performance, handling, and any unusual noises or behaviors.
  • Professional Inspection: If possible, bring a mechanic for a more detailed inspection or suggest taking the car to a trusted service center.

• • Negotiation Strategy: Be prepared for counteroffers and have a maximum price you’re willing to pay. Highlight the benefits for the seller (e.g., quick transaction, no need to deal with other buyers).
  • Closing the Deal: Aim for a win-win situation. Be flexible but stick to your budget constraints.

• • Agreement: Once a price is agreed upon, draft a purchase agreement that includes all terms of the sale.
  • Payment: Arrange for a secure payment method, such as a cashier’s check or electronic transfer.
  • Title Transfer: Ensure all necessary paperwork is completed, including the transfer of the title. Verify that the seller has the title and it is free of liens.

Conclusion

By following these steps, a dealer can effectively reach out to private sellers on AutoTrader, negotiate a fair purchase, and seamlessly integrate the new vehicle into their inventory. This process ensures a professional approach, maintains good relationships with sellers, and results in acquiring quality vehicles for resale.