CarLotz Review
Carlotz is a car selling service that individuals can use to sell their vehicles without being involved in the selling process. The company offers a consignment to retail sales in the vehicle selling industry. You register on the platform, make arrangements to drop off your car at Carlotz premises, set the price, and the platform will sell it for you. You can make up to $93,000 for your car.
Pros
- Carlotz makes car selling easy
- Accepts vehicles in any condition
- Carlotz has good car prices
- Updates sellers during the process
Cons
- It charges hefty fees
- It could be slow
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Best for Older & Damaged Cars
Buys used, damaged or junk cars
Free tow and no hidden fees
Pays by ACH trasfer or check
Top Pick for Junk Cars
Free, no-obligation cash offers
Offers free paperwork service
Pays on the spot upon pick up
Highly Rated by Customers
Excellent customer service ratings
Honors guaranteed offer for 7 days
Can pick up a car within 48 hours
Great for Low-Mileage Cars
Gives a real offer in 2 minutes
100% hassle-free online process
Free car’s Value Tracker available
How Does CarLotz Work?
CarLotz Inc. is a company that deals in buying and selling used vehicles, including cars, sedans, trucks, SUVs, convertibles, vans, and wagons.
Selling a used car to CarLotz entails following these steps:
- Step 1: A consumer or corporate consigner registers on the platform and provides the vehicle’s details, including license plate number or VIN.
- Step 2: CarLotz examines the vehicle to determine its reconditioning needs.
- Step 3: The car selling service determines the vehicle’s price and gives the seller an offer. Then CarLotz will follow up and make arrangements for the seller to drop off the car.
- Step 4: CarLotz inspects, cleans, and runs the seller’s vehicle safety report. Individuals can pay a $199 upfront consigning fee and an additional $100-120 fee to detail the vehicle fully.
- Step 5: The car selling website photographs, lists, markets, negotiates prices, facilitates test drives, and sells the car on behalf of a private seller.
- Step 6: When a buyer makes an offer on the car, the seller can accept or reject it. CarLotz deducts a $799 fee from the car’s sales proceeds and gives you the remaining balance via cheque.
How Much Can You Get for Your Car With CarLotz?
CarLotz prices vehicles based on:
- The vehicle’s condition
- Real-time market data
- Auction sales data
- Vehicles’ prices on National Automobile Dealers Association (NADA) and Kelley Blue Book (KBB)
The table below illustrates how much you can get for your car with CarLotz.
| Vehicle Model | Year | Selling Price | What You Get After the $799 Fees |
|---|---|---|---|
| Volkswagen Golf GTI | 2016 | $16, 297 | $15,498 |
| Subaru Crosstrek | 2019 | $26,799 | $26,000 |
| Chevrolet Equinox | 2019 | $29,461 | $28,662 |
| Ford F-250 | 2016 | $35,795 | $34,996 |
CarLotz Reviews: Is CarLotz Legit?
CarLotz is a legit place to trade in a car or sell a car online. The Car buying platform has many positive reviews, on many online review sites.
Car sellers who have used CarLotz to sell their used cars laud the good customer service they receive on the platform. They also appreciate that the site keeps them updated during the car selling process.
CarLotz also has its downsides. One of the most common complaints some people have made about the dealership is that some salespeople fail to provide all the details of a vehicle, discouraging individuals from trusting the platform to buy used cars.
| Review Site | CarLotz Rating |
|---|---|
| App Store | 4.9 out of 5 stars |
| Google Play Store | 4.8 out of 5 stars |
| Trustpilot | 3.5 out of 5 stars |
| DealerRater | 3.6 out of 5 stars |
| Cars.com | 4.9 out of 5 stars |
Who Is CarLotz Best for?
CarLotz is best for sellers who want a simplified selling transaction and good prices for their used cars. Sellers only need to take their vehicles, and the platform will help them set the best prices for their cars.
Sellers with newer cars benefit from selling them via CarLotz because they can get more money for their cars. Hence, the listing and after-sales fees will not dent their profits as much as they would for someone with an older car whose value is much less, leaving them with meager profits after Calotz deducts the service fees.
The platform takes care of other details, including marketing the car, DMV paperwork, and collecting the payment on behalf of the seller. Once they sell the used car, the seller will only show up to collect a check from CarLotz’s facilities.
CarLotz Payment Options
CarLotz pays sellers via check; sellers receive the check by picking it up from their facilities once a buyer has paid for it. You can cash in the check into your account or withdraw the money.
What Types of Vehicles Does CarLotz Purchase?
CarLotz purchases vehicles in various conditions, including junk, old, water-damaged, wrecked or used.
How Fast Can You Sell Your Car With CarLotz?
On average, CarLotz takes about 34 days to sell a used car. Each vehicle listing is viable for 120 days. CarLotz tries to sell the car as quickly as possible by aggressively marketing it nationwide, handling potential buyers’ queries, and giving buyers financing options.
CarLotz Fees: How Much Does It Cost to Use CarLotz?
| CarLotz Fees | Amount |
|---|---|
| Upfront consigning fee | $199 |
| Full detailing fee | $100-120 |
| After-sales fee | $799 |
What Are the CarLotz Pros & Cons?
CarLotz Pros
- Eliminates intermediaries from car-selling transactions.
- The car selling site handles the whole car selling transaction, from cleaning, DMV paperwork, listing, marketing, and selling.
- The site buys cars from sellers in any condition, whether used, junk, or damaged.
- Their applications are easy to use.
CarLotz Cons
- You have to pay upfront consigning and detailing fees
- It could take several weeks before someone buys your car
How Good Is CarLotz Support?
CarLotz support is professional, friendly and welcoming. If you run into problems while trying to use the platform, you can send them an email, call their customer service hotline, or contact them on their social media pages.
CarLotz Review Verdict: Is It Worth Selling Car With CarLotz?
Using CarLotz to sell your car is worth your time, as the site takes care of every process for you, including handling buyers. You only take the car to CarLotz, set the price, pay $299 listing and detailing fees, and the company will take care of the rest car selling process for you.
You receive a check after CarLotz has sold your car, making the company ideal for vehicle selling without experiencing the trouble of the conventional car selling process.
CarLotz FAQ
What Is CarLotz?
The company was founded in 2011 by entrepreneurs Aaron Montgomery, Michael Bor, and Will Boland in Chesterfield County, Virginia. It is present in more than 8 locations across North Carolina, Illinois, Virginia, Texas, and Florida.
CarLotz has sold more than 16,000 vehicles since 2018, and in the first quarter of 2022, retail unit sales were 2,270 vehicles.
The table below shows the number of units CarLotz sold in three years:
| Year | No. Of Vehicles Sold |
|---|---|
| 2018 | 4077 |
| 2019 | 6435 |
| 2020 | 6215 |
The company’s Mission statement reads, “To provide the world’s best automotive retail experience.”
CarLotz offers an enticing value proposition for car sellers, including giving them a seamless and hassle-free selling experience. CarLotz has a market share of around 0.02% of the used vehicle sales market worth $841 billion.
The platform’s achievements include being the first company in the automotive selling industry to offer a consignment to retail sales.
Why should I sell a car with CarLotz?
You should sell your Car with CarLotz because it solves the hassle of selling it yourself. You only need to hand over the car to the site, and CarLotz will sell it for you.
How does the car selling process work?
You take the vehicle to CarLotz, and they will help you set the best price for your car. Then, the site cleans, reconditions, photographs, lists, markets, and sells the vehicle for you. It keeps you updated during the process, and you receive a check once someone has bought the car.
Does CarLotz charge fees?
CarLotz charges a $299 upfront listing fee; it also deducts $799 from the sale proceeds.
How does the platform price cars?
CarLotz prices cars based on their condition, real-time market data, auction sales data, and vehicle prices on National Automobile Dealers Association (NADA) and Kelley Blue Book (KBB).
Can I sell my car with a loan or lease?
Yes, you can sell your car if you have a loan or lease. CarLotz sells the car, pays the loan or lease directly, and writes you a check if there is a balance.