The trade-in Part 2
Your trade evaluation has been done and you have received an offer from the Dealership, now let’s take a look at 3 possible scenarios:
The vehicle you are trading in was bought in cash, and you are buying your new vehicle in cash.
You believe your vehicle is worth R50.000 and the Dealer is offering you R30.000. You have shopped around and this is the best offer you have received. You can now either:
Sell your car privatelyInsist on getting R50.000 from the Dealer or you walk away from the deal.
With option 1, selling your car privately, please consider approaching a reputable Company. This way you avoid the risk of being hijacked or worse and you can also rest assured that the vehicle will be taken off your name, this way eliminating the risk of any future fines and non-renewed license discs.
With option 2, should the Dealer have sufficient profit in the vehicle you are interested in purchasing they can do what is called an over-allowance. This means they take R20.000 out of the profit of the vehicle, add it to the trade-in offer received and Voila – you have your R50.000. In effect, they have given you their profit or a portion thereof towards your trade-in which leaves little money towards a discount. Either way, you get the additional R20.000, however most times it's best to keep the trade-in deal and new car deal as 2 separate deals – take what you are offered and move on to getting the best deal possible on your 'new' car.
There is a settlement with a Bank. Fortunately, you have received a sufficient offer from the Dealer to cover your settlement – an easy hassle free transaction – once you take delivery of your new car and your vehicle has officially been handed over to the Dealer, the paperwork is processed, your trade-in is settled and you have your new vehicle.
These 2 scenarios are the most ideal for trading in your vehicle.
There is, however, a 3rd Scenario – you are trading in your vehicle, you have a settlement with the Bank and the settlement is higher than the best offer you have received for your vehicle.
This Scenario needs a blog all on its own.
So we’ll see you next time when we discuss – The Trade-in Part 3.
Remember to stay awesome!
Yours in motoring - Patty