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Car Selling and Buying Rating Methodology

Updated: Jan 1, 2024

With the rise of digital dealerships like Carvana, it’s easier than ever to sell your car or buy a new one from your home. Not all platforms, however, offer the same functionality, and some are better for selling a car while others are better for buying one. The condition of the car you want to sell can also narrow down your choices.

To help consumers get a good sense of their car buying and selling options, we reviewed 15 of the top companies in the industry. This includes platforms with fully remote services like Carvana and others that have a hybrid of online and offline services like CarMax. We also reviewed companies that buy older vehicles other dealers won’t take like Peddle and Wheelzy.

Our research included a survey of 1,000 consumers who have purchased or sold a vehicle online. We also had a team member go through the car selling process online when they happened to be ready to sell their car.

Our Rating System for Car Selling

Car selling platforms may specialize in different types of vehicles, but there are some common things to look for. We took a deep dive into the services, fine print and reviews of each platform to see what makes one better than the other. Here are the main categories we considered:

  • Cost
  • Support
  • Platform
  • Customer Experience
  • Industry Standing

Factors We Use To Score Car Selling Companies

We begin our scoring process by giving each provider a rating out of 100, giving more important categories more weight, then later translate that into a score on a 10-point scale. Let’s break down the categories in our methodology. Note that some percentages are rounded for clarity.

Cost (30%)

For the cost category, we primarily focused on how much value you can get for your vehicle from different online dealers. We also noted any fees required by the platform.

  • Instant offer value (27%): Our team received cash offers for three vehicles in various conditions and compared those to Kelley Blue Book values. Car selling platforms that offered higher values compared to the competition scored better. For example, one of our vehicles was a 2015 Ford F-150 SuperCab with between 60,000 and 70,000 miles. The average rate we received from 15 car buying companies was $18,337. Companies that offered $20,337 or higher received higher full points for that vehicle’s percentage of the overall score.
  • Fees (3%): Online dealers that offer private sale marketplaces often require fees to create a listing. The lower the fee, the higher the company scores.

Support (30%)

Next, we look at the support you get when you sell your car.

  • Free pickup (6%): Most major car-selling platforms can pick up your car for free, which gives a provider the highest possible score in this category. But with platforms that work with a network of dealers, the pickup options depend on the dealer nearest to you, which results in a lower score.
  • Loan payoff (6%): Some major car-selling companies can pay off the remainder of your loan if you are still making payments, earning them full points in this category. Most dealers can also do this. But not all companies offer this option, so your choices can be limited.
  • Inspection requirements (5%): The majority of online dealers inspect your car to make sure it matches the information you provide. If they provide pickup, they’ll inspect the car at that time. Other companies will require an inspection when you drop the car off. Companies with pickup inspections earn the most points here.
  • Dropoff option (5%): Some companies give you both pickup and dropoff options, which adds to the convenience and earns a company full points.
  • Speed of payment (4%): When you get a cash offer, what it really provides is a check that is handed or mailed to you. In some cases, you’ll get a direct deposit a few days after the sale. Companies that offer same-day payment receive the highest scores.
  • Length of offer validity (4%): Most cash offers are good for seven days, which gives you time to compare other options. But some companies give you just a few days to decide. We award the most points to companies with offers valid for 30 days or more.

Platform (15%)

This next category takes into account the car-selling features a platform offers.

  • Direct purchaser (4%): The easiest way to sell a car is directly to an online dealer like Carvana. If the platform just acts as a pricing tool for third-party companies, it requires more work on your end and scores lower in this category.
  • Instant offer (4%): The vast majority of car-selling companies provide instant offers, though a few like Wheelzy do not. An instant offer lets you know what the company would pay for your car, provided it matches the description.
  • Private sale option (4%): Platforms that offer private sales listings provide more versatility and score higher in this category.
  • Trade-in option (3%): Having the option to trade your car can be a flexible perk for consumers, so providers offering this feature earn full points.

Customer Experience (15%)

Customer experience is an important part of doing business with an online dealership. Here’s what we look at:

  • Better Business Bureau (BBB) customer score (8%): Customers rate companies on the BBB separately from the BBB’s own rating. We note trends in positive and negative reviews and also look at the company’s response. Car selling companies with 4.0- to 5.0-star ratings score best in this category.
  • Trustpilot reviews (7%): Customers also voice their opinions on Trustpilot where we analyze trends for the company. Similar to the BBB reviews, companies with 4.0- to 5.0-star ratings score best.

Industry Standing (10%)

With this category, we get a sense of the longevity and reliability of the company.

  • Longevity (5%): A well-established business has bought thousands of vehicles and has the process down. We award full points to companies that have been around for 40 years or more.
  • BBB rating (5%): A company’s BBB rating shows how quickly it resolves complaints and its willingness to work with customers on the platform. An accredited A+ rating earns companies the highest scores.

Our Rating System for Car Buying

Most platforms that will buy your car will also sell you a new one, though some specialize in just selling inventory. We looked at most of the same major categories but from a buyer’s perspective:

  • Industry Standing
  • Platform
  • Pricing and Financing
  • Support
  • Customer Experience

Factors We Use To Score Car Buying Companies

Our categories of Industry Standing (10%) and Customer Experience (15%) apply to both car selling and buying platforms and consider the same data points. You may refer to those categories above. All the following categories also receive the same weighting as before. However, we take a different approach for the Pricing and Financing, Support, and Platform categories.

Pricing and Financing (30%)

For cost, different things matter when you’re buying a car from an online dealer rather than selling it.

  • Price comparison (13%): Our team compared prices for different vehicles across online dealers. For example, we searched for 2020 Honda CR-Vs and found which sites had the better prices for comparable models. Car buyers that consistently display the lowest prices earn the highest scores in this category.
  • Displays upfront price (5%): Some companies display their pricing right away, while others require you to get more information from a dealer to see the price. We reward companies with transparent pricing.
  • Negotiable price (3%): Haggling with the car salesperson is possible for companies that work with dealer networks. Those that sell cars directly, however, don’t negotiate. We give full points to those with negotiable rates since consumers may have the option to get a lower price.
  • Money-back guarantee (3%): A money-back guarantee is important if you buy a car online and earns a company a higher score in our ratings. Dealer networks typically don’t offer this option once you sign the dotted line.
  • Fees (3%): Limiting fees such as vehicle delivery fees earns companies a better score.
  • Financing available (3%): Providers with flexible payment options earn more points in this category.

Support (30%)

Next, we took a look at some aspects of support from a different angle:

  • History report included (6%): Dealer networks and online platforms include vehicle history reports so you know what the car has been through. Those that do not include this receive lower scores.
  • Detailed inspection (6%): Many sellers offer a detailed inspection, which earns them maximum points here; others do not or only provide inspections if you are a member of their organization.
  • Verified owner reviews (5%): Large platforms like CarMax and Cars.com include helpful owner reviews of the same model, trim and year, so you can see what other drivers think of the car. This earns them the most points here.
  • Expert car reviews (5%): The few platforms like Edmunds and Autotrader that offer  in-depth model reviews from their editorial staff get the highest points.
  • Vehicle delivery (4%): Online retailers that include vehicle delivery earn more points in this category.
  • In-person locations (4%): Sellers with online and in-person options provide more choice for consumers and, for this reason, score higher. 

Platform (15%)

Looking at the platform from the buyer’s perspective, we concentrate on some different aspects:

  • Market value and price comparison tools (3%): Many companies provide useful tools that display the market value of a vehicle so you know if the deal is good. Other platforms provide historical price data so you can see if the price is climbing or falling. We award full points to companies with both.
  • Direct purchase (3%): If a consumer can directly purchase a vehicle through the retailer, rather than a third-party, the retailer scores higher.
  • Test-drive option (2%): Online dealers that let you test-drive the vehicle, or companies like Carvana with a test period after you receive the vehicle, earn the highest scores in this category.
  • Trade-in option (2%): Platforms that allow drivers to trade in a vehicle when purchasing a new car earn more points in this category.
  • New and used cars (2%): Some platforms sell both new and used vehicles, while others specialize in one or the other. We reward companies with both options.
  • Vehicle availability (2%): Companies that sell vehicles directly already have them available, earning the highest scores here. But other platforms like Cars.com work with a network of dealers, so you have to contact the dealer to verify availability.
  • Virtual tour (1%): Companies offering a virtual tour that includes video or 360-degree images get more points in this category.

The Bottom Line: How To Choose the Right Car Selling and Car Buying Companies

Many large platforms offer both car buying and selling functionality, but some are better for one over the other. The features you have, whether you’re a seller or buyer, can vary quite a bit. So take some time to look into what each online dealer offers to make the right decision.

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