Where to Buy a Used Car – Try Your Employer

Let me start by saying this might not be an option for everybody, but it could be and you’re just not aware of it.

Background Info

In a previous position with my employer, I managed a fleet of vehicles. The company has roughly 3,500 leased vehicles in the fleet that are spread all through the U.S. These leases aren’t restrictive like the leases that most consumers have. These leases are open-ended and the company can keep the vehicles as long as it wants. However, the company is responsible for the difference between the book value and selling price at the end of the lease. That is a risk most big companies are willing to take to avoid the restrictive leases.

Typically, companies will get rid of vehicles by allowing the lessor to take the vehicles to auctions.  However, many companies now give employees the option to buy the used vehicles first.  This is more cost effective for the company because it won’t pay transportation and auction fees. If you work for a company that has a fleet of vehicles and you are in the market for a used vehicle, I highly recommend that you look to this. You never know, you might find the perfect place to buy a used car!

Example

The other day, I looked at my company’s used vehicle resale website and found 124 vehicles were listed for sale.  Let’s look at an example of why you might find a good deal from your employer.

I found a 2009 Volvo S40 2.4i Sedan 4 door with leather seats listed for $12,163.00 with 68,400 miles.  The listing shows all of the previous maintenance on the vehicle along with a condition survey of the vehicle. I highly doubt you are going to find maintenance history at any car dealership on used vehicles. Additionally, a fellow employee was driving this car, so more information about the vehicle is just an e-mail or phone call away.  The employee won’t have a reason to lie like a dealer because he won’t benefit financially from the transaction. Now, I wanted to see if this 2009 Volvo S40 was a good deal. Thus, I went to KBB and NADA to check both the retail and trade in values for this vehicle.

Kelly Blue Book Estimate

NADA Price Estimates

The suggested retail price is $17,765 and $19,750 from KBB and NADA respectively.  The trade in value is $13,850 and $13,600 from KBB and NADA respectively.  Essentially, you would be paying the wholesale price for this vehicle.  That looks like a good deal to me! When I was managing the company’s fleet, I actually found out that an employee was buying multiple cars and then reselling them at a profit. There was nothing to stop him from doing so and I don’t blame him at all!

Again, I don’t know that this will be an option for everyone, but you should at least look into it. You could potentially save thousands of dollars on a used vehicle. I wish I would have known about this and not bought a new car after I finished college.

Has anyone purchased a used vehicle this way? If not, do you know if your employer offers a used vehicle resale program? I’m interested to know how many people are aware this type of employee purchase program.

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