Many parties purchase vehicles for different reasons. Here are some of the different things that car buyers might do with your vehicle once they buy it.
Dealerships: Resell Trade-Ins
Dealerships regularly take possession of trade-ins, offering a substantial discount towards purchasing vehicles in exchange for surrendering your vehicle to them.
Occasionally, a dealership will offer a promotion where they accept any used vehicle for a minimum amount off of a new one. Should you trade in a really old, beat-up vehicle, the dealership might just scrap it. In this case, they're willing to take a small loss on the vehicle in exchange for getting you to buy a new one (and thus provide them with a profit).
Most often, dealerships resell the vehicles that they accept as trade-ins. They will clean your vehicle and check its mechanical condition. They might make a few minor repairs if some are needed, and those might include removing dents and painting over chips. Once the vehicle is cleaned and repaired, they'll resell it.
Your vehicle will be resold as certified pre-owned or used, depending on its age, mileage, and condition.
Individuals who purchase vehicles via private party sales are primarily looking to drive the vehicles they purchase. They might use the vehicles as their main car, a secondary car, a tow vehicle, or a fun car.
If you try to sell via private party sale, keep in mind that individual buyers will likely need the vehicle to be in good mechanical condition. Aesthetics might be important or they might not be, but the vehicle needs to be in good running order.
Most charities will take old vehicles as donations, but a few will actually purchase broken-down vehicles. In particular, charities that provide free adult education might purchase your vehicle if they provide mechanic training.
If a continuing education charity purchases your vehicle, they will likely use the vehicle to teach students various repair methods.
Parts Sellers: Dismantle
Parts sellers purchase old vehicles that no longer work in order to source their parts. If you sell to a parts seller, they'll likely take the vehicle fully apart. Each component will be listed for sale individually, and people who are repairing a like vehicle may purchase the parts.
In these situations, parts sellers know that an old vehicle may be worth more if it's sold piecemeal than as a complete vehicle. They're also willing to put in the effort required to remove the parts from the vehicle.