What is Car Trade-In?
As a buyer, you often seek out the best retail price of the car that you desire and want to purchase. You can accomplish this by looking for sales at the car dealer, which might not come at your convenience. You can accomplish this again during the negotiation process which works only if you are gifted in negotiation skills. Trade-In is another option you can consider, trade-in is nothing more than selling your car to a dealer for the purpose of obtaining credit towards the retail price of the vehicle you want to purchase.
Of course they are factors which can affect the value of the car you are
trading in, this factors includes the condition of the car,
whether or not the Make and Model of your car is in high demand, the condition of the car and of course again how you negotiate during negotiation process.
The process of trade-in
1) Fix your vehicle: Ensure that you fix every little problem concerning
your vehicle, like fixing broken light bulbs and the likes. take your vehicle for
assessment to determine what is faulty, as the dealer will eventually know this!
2) Know the value of you car: For you not to be taken for a ride and end up losing than gaining in this process, it is important to know what you currently possess. There are sites which can help you accomplish this simply provide information required of your car e.g. Model, Mileage, age and condition of your car, and based on this an estimate value of your vehicle will be determined.
3) Negotiate a deal: Firstly ensure that your vehicle is in good shape, vacuum inside, wash it and rectify those small imperfection on the outside the dealer needs to visualize your car in their lot.
Choose the right timing for instance when petrol price goes up, people prefer fuel-efficient cars so the price of 4x4 decreases! You can't sell your convertible during rainy season,
it will not look attractive to the dealer!
Advantages and disadvantages of Trading in your car
1. Only one dealer handles this process
When trading in your car the dealer will handle all necessary processes for you including paperwork, and your effort is to negotiate the deal and be available.
2. It is quicker than selling your car privately.
Selling your car privately takes time, as you first need to find a platform where you can advertise your vehicle, then meet with potential buyers and other legal processes. However, when trading in your car you can accomplish this process within days.
3. No need to worry about your car coming back!
Once the trade in process is concluded, you do not have to worry about the dealer returning your vehicle for any particular reason that might occur after the dealer has taken your car. Unlike when you are selling privately, the new owner has the right to return the car once the notice any mechanical failures or any other reason.
1. Selling price might be lower than when selling privately.
The negative side of trading your car in at a dealership is that you have greater chance of selling your car for lower money compared to if you were selling it privately.
2. You limit your choice of what and where you purchase
When trading in your car, you are only allowed to purchase your new car at the dealer where you traded you car.
Also, you will be limited or restricted by the stock and availability of vehicles at the dealership.