Purchasing a new vehicle from a dealership has its perks. The moment at which you want to dispose of it for another vehicle all you need to do is simply negotiate with your dealership. Your dealer will then make an offer for your car based on the yearly valuation done by the insurance.
The money offered will now be used to offset the balance of the new car you intend to buy. Question is does one benefit from Trade-ins as compared to selling your car privately?
Advantages of Trade-In
The biggest advantage of trading in your vehicle is that the car is disposed of quicker. This process is faster and easier. Since the car was purchased and serviced from the dealership, it is a known entity and trade in will be largely accepted, visa vis selling your car in a yard, that’s expensive due to demurrage charges and other factors.
How trade-in vehicle is assessed
The dealer will generally asses the physical condition of your car, checking for wear and tear, abuse and if it has been involved in a fender bender. Before taking it to the dealer make sure that it was taken to a proper valet for thorough cleaning so that it is presentable.
The vehicle valuer will take into consideration the age and make of the car, its mileage, colour and features fitted in the car, not forgetting popularity. Popular models will fetch higher prices than undesirable models from obscure manufacturers with an unproven track record.
Service history will also be assessed. Having its full-service record is a positive especially if you are trading in the vehicle. This will count for a lot when determining the price for the trade-in. This is a vital marketing point for the dealer when they advertise the car to sell.
Trade in pricing
Normally trade-in price will be slightly lower than what you would get via private selling, due to the fact that the dealer has to cover overheads costs like assessment/valuation, touch ups etc. and still have a mark-up when they sell the vehicle.
Once the dealer gives you the retail price and you accept, transfer of ownership process begins and the vehicle is now owned by the dealer. Once the process is done, they issue a credit note towards your next purchase (In house).
Some dealers will offer freebies like free insurance for the first year if you trade in your car and also give you a full dealer warranty as expected.