: Dealers offer to buy old cars from customers purchasing new ones. These offers are usually based on auction data and local demand .

The business of buying and selling through car dealerships is a multi-layered cycle involving trade-ins, auctions, and retail sales. Dealers essentially act as intermediaries, sourcing vehicles at wholesale prices to sell them for a profit. How Dealerships Buy Cars

Once acquired, cars are sold through different paths depending on their condition:

What exactly do dealerships do with trade-ins? : r/askcarsales