Part Exchange Car Value
Today, I’m going to cover the all important part exchange car value, and how to reduce the risk of a heart-attack when the dealer makes you an offer.
Not surprisingly, one of the biggest upsets at a dealership is the part exchange price. No one wants to sell their car for less than its value. Including me.
However the part exchange price is something that can make or break the deal. More important than the actual price is how you actually go about the whole process.
Unfortunately you may have to come to terms with the fact that you’re not quite going to get what you had hoped for on your exchange. But here’s how to prepare for the shock, and make it easier to deal with.
First and Foremost:
No matter how reliable your car is and how well you’ve maintained it over the years, just like every other car, its price is pretty much fixed. And yes, you’ve guessed it, that price isn’t anywhere near what you paid for it.
So, how does the dealer value your pride and joy?
Back in the day, the dealer would simply refer to his trusty trade guide when valuing your car. And although some still do, the more savvy dealers will also have a quick butchers on the internet to see what price they can actually retail your Part Exchange for.
So do your homework!
Essentially sites like Autotrader have become the new trade guides for most dealers and they will check the going rate for the particular make and model of your car. So it will pay you to do the same.
Before you even think of buying a new car, just do some quick research yourself to get an idea of what your car is selling for at established dealerships. And take note: You will get less than this price – this may sound like common sense but you would be surprised.
Also take a look at some ‘We Buy Your Car’ websites to see what they offer you. This is a more realistic price of what to expect.If you find that dealers are selling your particular model for around £/$5000 then it’s pretty obvious that you’re not going to get £/$5000 for it at the dealership regardless of what you may have paid or what you think it is worth.Knowing this in advance will prepare you, and help you make a good decision based on your research rather than your emotions.
The result here is falling out with a dealer over the price of your part exchange, then going to a few more dealers only to find out that the first dealer was right. And in an attempt to save face and avoid feeling stupid, you buy a second choice somewhere else just so you don’t have to go back to the first dealer and the first choice of car.
Nobody wins in this situation. The dealer hasn’t sold a car and you have to settle for second choice. Although in reality the dealer will more than likely find another customer but you are going to either be stuck with yours or take a hit and change it again sooner than planned.
The Prepared mind outcome:
Here you will immediately know whether the dealer’s offer is reasonable and even after checking around a few more dealerships you can still go back without feeling like a complete tool.Just tell the dealer thanks for their time and you might just be back.
This will also build a more comfortable relationship with the dealer as they will respect you for being realistic and therefore make the coming negotiations that much easier.
Key-point:
Just because a dealer offers you more for your part-exchange than a previous dealer it doesn’t make it a better deal.Not unless it’s on a like for like car with the same mileage and condition. Think about it. If three dealerships are offering you a similar price but a fourth one is much higher, something isn’t right.
The only time you may get a lot more is if the dealer is desperate to move that particular car. It could be overage/old stock or just one of a big batch they need to get rid off. There are ways of finding out, as a customer, which I will cover on a later date.
To compensate for the sweat that has probably gathered on your brow, take a look at the link below. If you haven’t seen these before; a US car dealer came out with these car adverts a few years ago.
As much as they’ll make you smile, they’ll probably remind you of someone you have encountered at some point during a car buying experience.
I hope this has helped. Be with you again real soon.
