If you have discovered the actual worth of used luxury cars- you probably know trade-in works as magic there. The thing about purchasing used luxury cars from dealerships is that they provide you with a trade-in option- which lets you trade your vehicle for another variant within a few years of the purchase- this is subject to the changing policies of each dealership. But the thing is, this is enjoyed as one of the biggest perks of dealing from a dealership. Why? Because when has a car enthusiast ever settled for a single variant?
This trade-in option has two significant benefits (a) since its not possible to know everything about the car in one test drive- you can get the most feasible one and exchange it in case you face any irregularities, and (b) you can fulfill your dream of owning different luxury cars- you don’t have to spend your hard-earned money on one car anymore- buy one and trade it in every time you wish to experiment.
But the thing is, if you take your car as it is to the dealership- you will be surprised to hear the dealership quotations. They will quote you so low that you’ll be convinced you don’t want to trade it. And many people today are making this mistake because they don’t know- what things they should be fixing and to what extent. Hence, as always, we are here to rescue you.
So let’s get started; we have a lot to cover here!
Step-by-Step procedure to follow while trading in used luxury cars.
Find out the market value of your car-
When you go to the market to buy a dozen bananas, you probably go to a single shop. But a luxury car is not a grocery item with a fixed market price. And no one can question a dealership selling a car at higher prices than the market.
So you have to do your homework. The first step of bagging a great deal is to do as much research as possible- figure out what others are paying for the similar model with the same make year and other details.
Honestly, there is not a fixed market price for any car in the market, but since so many people are dealing with used luxury cars every day, you can get an idea of your car’s worth.
This step will help you immensely when you negotiate a final deal with your dealer.
Find out your car’s equity-
Your car’s resale value and equity are two very different concepts. As we described previously, your resale value is the best price your car can be sold in the market, and the equity comes after you deduct your outstanding loan amount from your car’s resale value.
For instance, if your car has a value of 35 lakhs and you still owe five lakhs to the bank, the car’s equity will be 30 lakhs, which is considered positive equity.
Whereas if you owe more to the bank than your current market value, your car’s equity will be negative. Trading your vehicle in this scenario could get a little technical, and it is advised that you take proper precautions so you don’t end up paying more than what you should have because you transfer your negative equity from your old car to your new car like this which is never a good start.
Shortlist the car you want-
Now that you know your car’s market value and equity, you need to choose a variant with which you want to trade in your current vehicle. This is another hefty process; you will need to research a few dealerships willing to take your car in first. After that, you will have to scan their lots, see what cars they have, and shortlist a few cars you like.
While doing this, take care of these things-
- Go to a credible dealership- check reviews if possible.
- Find your car in the lot- don’t forget to cross-check documents.
- Ask the dealership for a quotation and ask around other dealerships.
- Make sure you keep your budget in mind, along with an estimate of what you can get for your existing car.
After doing all of this, we assume you would have a list of good quality used luxury cars. As tempting as it is, we recommend that you don’t settle for one just now because while negotiating, you might not find your preferred deal on it.
Get it serviced and washed-
This is where most people don’t pay attention. And it costs them money. Look at it this way: say you are in the market for a used car and choose to buy from a private seller. Now the person brings a vehicle covered in dust with low car oil in it- what would you do?
Even if the car is of good quality, you will only, in the rarest circumstances, buy it. Similarly, if you take your vehicle without preparing it for a trade-in, the dealer will likely quote a lower price for it.
So what can you do to get a better deal?
Well, you can take your car for regular service and get it properly cleaned inside on your way back home. This way, you can have a better impression of the dealer. Because luxury cars are all about servicing and maintenance
Step in the market-
Now the time has come when you put all that research and information to good use. Since you know everything now, you are ready to knock on the doors of dealerships and ask for quotations.
First, tell them you are interested in buying a car from their lot. Let them talk and see what they are quoting you. If you think you can get a better deal somewhere else, try to negotiate on this basis.
Negotiate with proofs-
If you think the dealership is not ready to negotiate, the better thing is to go to a different dealership. But if you feel they might be willing to give you a discount or bring down their rates- stick to them.
Try to negotiate your car’s value by showing them servicing records. You can also argue that the car has less mileage or is relatively young to be priced this low.
Try to negotiate well either on the price of the new car or the resale value of the second.
Here are a few facts you should know-
- You usually get lower quotations from dealerships than you would get if you were to sell your car privately.
- Trading a car with negative equity can bring you underwater.
- You will have to work here- since getting the dealer down on the new car’s price and up on your current vehicle is challenging. Most dealerships of used luxury cars only negotiate on one of these since the ball is in their court.
- If you haven’t been taking good care of your car lately, but you think you would want to trade it in the future- get to it asap! If you want a good deal, you need good maintenance and service records of this variant. Create a good history over the coming six months and then only take it to a dealership.
Trading in your car can become an actual hectic process. And this could get even more tangled if you were to trade in a vehicle with negative equity. Hence, it is always good to be aware of such things before you decide to go to the dealership and make the final call. Otherwise, you will pay more than what you should have paid for this trade-in. In our opinion, a trade is comparatively more complicated than buying. This is because it includes both buying and selling from your end; taking the responsibility of doing all of this without good knowledge is indeed a considerable risk.
But don’t worry because we have pledged to pass on the correct information to you at the right time. Moreover, if you are interested in buying used luxury cars, you should check out Kings Auto’s showroom. They are among the most renowned merchandisers of pre-owned luxury cars in Delhi. With the most exotic vehicles on their lot, they have sold their cars to influential personalities, and without a doubt, they will get you what you want!