Car buyback or brokerage: which leaves you more?

What is car buyback?

In a buyback you sell the car to a company that resells cars. You sign the contract of sale directly with the buyer, they pay the agreed price, and the deal can be done the same day.

The buyback firm is the buyer. Its interest is not to find the highest price for your car but to buy it at a price that makes reselling it worthwhile.

Why is a buyback offer below market value?

This is not a criticism — it is the business model. The firm resells the car later, and its offer has to cover everything between buying and reselling.

• Preparation and any repairs before resale.
• The time the car stands on their lot, tying up money.
• The risk that a fault shows up that was missed at purchase.
• Advertising and selling costs.
• Their own profit.

How much that takes off the market value depends on the car and the buyer. We do not quote a general percentage because we have no data on it — but you can work out the gap for your own car.

What is brokerage?

In a brokered sale you do not sell the car to the intermediary. The broker finds a buyer and brings you together (VÕS § 658 (1)); the contract of sale is between you and the buyer, and the buyer pays you directly. The buyer is the person who will drive the car, not a reseller, so the price does not have to cover anyone else’s resale costs. In exchange, the sale takes time and the broker charges a fee.

How it works with us: car brokerage step by step →

Which leaves you more? Work out the break-even

Compare the buyback offer with what brokerage would leave you after the fee. If the offer is higher, buyback is better financially. If it is lower, you are paying the difference for speed.

The last column is the buyback break-even: buyback leaves you more if the offer is above it. The table assumes the car sells at exactly that price. If it sells for less, the break-even moves down too — so settle on a realistic market value before you compare.

Not sure what your car is realistically worth? See how to check its market value →

Count the time as well. Buyback money is in hand at once; with brokerage, only once a buyer is found. If you need the money quickly, the speed may be worth the price gap.

When buyback is the right choice

• You need the money now, and selling time costs you more than the price gap.
• The car is inexpensive. Our minimum fee is €700, so on a cheap car it is a large share of the price and a buyback offer may leave you more.
• The car has significant faults and you would rather not deal with them before selling.
• You do not want to meet buyers. With brokerage we handle the enquiries, but you meet the buyer at the viewing.

In those cases we will say so ourselves: buyback may suit you better.

When brokerage pays

• The car is worth enough that the gap between market value and a buyback offer is bigger than the fee.
• It has a full service history, good equipment or something else an end buyer is willing to pay for.
• You are in no hurry. The car stays in your possession until it sells, and you can keep driving it.
• You want to decide for yourself which offer to accept.

Summary