Sell2Dealers is a concept founded by Desmond Sanborn and, backed by Australian software developers and local investors, launched last month after successfully trialling the concept. It has started with cars, utes and SUVs and soon will add trucks, motorcycles and boats.
Mr Sanborn told GoAutoNews Premium that the business is a world first and follows the rapid uptake of online marketplaces that grew through the pandemic.
“I’ve been in this industry virtually my whole life and noticed recently that there’s been a disconnect between the buying of a vehicle online and the disposal of the old vehicle,” he said.
“Compared with buying, sellers don’t have the same innovative ways to dispose of their old vehicle.
“Sell2Dealers allows private motorists to sell their vehicles to registered dealers anywhere in the country with only a small listing fee for the seller and a low annual subscription fee for buyers.
“It gives them the same opportunity to access dealers online as they do with private sales and gives dealers instant access to a wider pool of stock.
“Compared with an auction, Sell2Dealers reduces the risk and costs involved for buyers and sellers as members of the public or non-registered dealers cannot make offers on cars. It’s a win-win for the dealers to access an increased pool of stock.”
Mr Sanborn said attracting people to the platform was done through social media and advertising, so private motorists would contact Sell2Dealers and place their vehicle on the website. The listing comes with photographs and details of the car such as mileage, features, accessories and so on.
“Dealers can make an offer for the vehicle online and this price goes directly to the seller,” he said.
“We have a four-day window for the vehicle to be online and dealers to make their offers.
“Payment is made directly between the dealer and the seller.”
Mr Sanborn said prices received were higher than those made between a private seller and a dealer.
“We’ve had a few vehicles through the system and have seen people getting upwards of 25 per cent more than what they would get dealing directly with a dealer,” he said.
He quoted an endorsement from a private buyer who sold his Ford XR6 ute who didn’t promote it privately because of the cost of advertising and because he didn’t want the hassle of showing the car to buyers coming to his house.
By using Sell2Dealers, he said the attraction was the low cost to advertise the ute and not having to show the car.
“We did get a price from a local yard that paid cash for cars and they offered us $17,000,” the seller said in a statement.
“We advertised it on Sell2Dealers and we sold the car for $23,000. This was an excellent result. We didn’t need to get a roadworthy because the dealer did all the paperwork.”
AutoRadar recently reported in GoAutoNews Premium that the average transaction prices of used cars in Australia has now reached $33,000 some $10,500 more than the average price of used cars before the pandemic.
Moody’s Analytics reported that used-car prices were up 21 per cent in 2021 with an additional 3.6 per cent rise forecast for this year, while Kantar’s Covid-19 Barometer study in 2021 found that 42 per cent of Australians will prioritise travelling by car well into 2022 for domestic holidays.
By Neil Dowling