Upgrading your used car to a new one appears hassle-free with the part-exchange method. It refers to selling an old car and purchasing a new one from a dealership while settling the difference between two payments. The method seems fast, convenient and stress-free as most of the paperwork is handled by the dealership and the entire transaction can take place in no time. However, since the selling of an old car and purchasing a new one is considered a single transaction, there are only a few situations in which the part-exchange method can be beneficial for car sellers. Typically, it is always better for car owners to separate these two transactions and avoid the part-exchange deal that mostly benefits just the car dealers.
Discussed below are some of the most important things to know if you are thinking about accepting a part-exchange offer for your car.
What is Part-exchange?
Most professional car dealerships offer their customers the option to part-exchange their vehicles. In such a deal, buyers simply purchase a new car and receive a discount for trading in their old car. However, this discount depends on various important factors that have been given below.
- The make and model of the car you are trading in
- The condition of the car you are trading in
- The car that you are looking to purchase
- The dealership profit margin
If everything is ideal as per the above-mentioned factors, customers can get a good discount on the part-exchange deal. However, normally dealers have fixed discount rates for specific car models, and it can be seriously difficult for customers to negotiate a significant discount.
Why Part-exchange Scheme is Not Ideal for Car Owners?
Though it reflects a win-win situation for both parties, the part-exchange scheme is financially viable for dealers only. While the customers can save themselves a lot of time and effort, they have to agree to a massive financial compromise. Since a part-exchange deal is considered a single transaction, customers only get a discount on the purchase of a new car. On the other hand, if a car is sold separately and the new car is purchased after that, customers can sell their old car at a fair price and can also get a fair discount on the purchase of the new one.
The part-exchange method is particularly not a good option for inexperienced customers who have not sold or purchased a car before. Dealers can easily trick such customers by offering them a low discount when they accept the trade-in deal.
It is essential for inexperienced customers to put in some groundwork before opting for a part-exchange deal.
- Customers must get an idea about the actual resale price of their old car through a reliable car evaluation platform.
- Market research is essential as it can help customers find out the potential market price of their vehicles. For this purpose, one can check classified websites, social media classified pages and print classifieds to estimate the potential market price of a used vehicle.
- Fixing minor problems can help improve the resale value of your car, so it can be a great idea to get your car inspected by an expert mechanic to identify which timely repairs can add value to the resale price of your vehicle.
In What Situation a Part-exchange Deal Can be a Good Option?
Car owners must avoid a part-exchange deal unless they want to upgrade their vehicle urgently. It can be an excellent approach for saving time when upgrading a vehicle. In addition to this, the chances of getting a higher discount in a part-exchange deal increase if your vehicle:
- Has a rare factory color
- Has a very low mileage
- Is a limited edition model
In these situations, car dealers often quote a higher offer for trading in a vehicle. However, it is not always possible to meet this criterion, which increases the risk of a financial loss for customers.
What is an Ideal Alternative to the Part-exchange Method?
The ideal way to upgrade a car is to separate the two transactions for selling an old car and purchasing and new one. You can sell your car in just 30 minutes to SellAnyCar.com at a fair price and then purchase any new car from a professional dealership. In this way, you will also be able to get a discount on the purchase of your new car.
SellAnyCar.com is the leading car buying company in the UAE that enables car sellers to sell their used vehicles in a 100% hassle-free manner. It is an ideal way to sell a used car at a fair price as the company offers the best market price of a used car based on its make, model, age and condition. Any used car regardless of its age, make, model, condition and mileage can be sold to SellAnyCar.com after its detailed inspection by the company’s experts. This is arguably the most convenient way to sell a used car at a fair price in the UAE.
If you are looking to sell your used car to buy a new one with advanced safety features and improved performance, then don’t forget that with us, you can sell any used car in just 30 minutes while all the post-sale paperwork is handled by SellAnyCar.com’s team.
