To Trade or Not to Trade?
30 Sep 2024 | Buying A Used Car
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Is it a good idea to Trade-in your car?
For most people, trading in your car at a dealership is a convenient solution to a problem, especially if you still owe money on it. You simply drive your car into the dealership and they appraise it. This means they inspect and research information about the vehicle before giving you a price for it - then you can decide what you want to do. If you aren't ready to buy a new car and just want to sell your vehicle, we can help with that too.
Request a valuation for Trade-in
Request a valuation for Sale
How will we process your Trade-in valuation?
The dealer will first determine the wholesale value of the car. This is the amount another car dealer will pay for it, taking into account what they need to spend to bring it up to a sellable condition, as well as the margin they will need when they resell the vehicle. If you owe money on your vehicle, the dealer will find out exactly what is left owing and pay this to the finance company for you. This amount is then deducted from what you actually receive for your car.
E.g., If the trade in value is $7,500 and you still owe $4,000 to the finance company, you receive $3,500 towards the car you are buying.
Is it better to sell the car yourself?
The alternative to trading in your car is to sell it. You can do this yourself or you can sell it to us. If you do it yourself, you may get a little more than the dealer is willing to pay, but it does come with some extra work. You will need to photograph the car and list it on a major site like Trade Me. You will then need to make it available for potential buyers to come over to view and test drive. Finally, you will need to negotiate the best sale price you can. If you still owe money on your car, you will need to organise the buyer to pay a portion to the finance company to clear the title and the rest to you.
At the end of the day, it is your choice whether you trade in or not; you simply need to balance the cost vs the convenience.