Thursday 19 March 2009

Part Exchange Your Car – Tips and Advice

Due to the fact that most of us own cars these days, when a decision to buy a new car is reached the part exchange plays a big part in any deal that can be done. This means that you sell your current car to the dealership and the amount given can then be taken off the price of the new car. In some instances you could use part of the money towards the new car and have some cash back, especially when financing the new car.

When you are trading your car as a part exchange, it is advisable to concentrate on the price difference between the new car and your current one. The difference you will have to pay will no doubt be the factor that helps you to go ahead with the new car purchase.

The difference may not necessarily be the price you would actually pay, as it could be the subject of negotiation, extra discount or even an extra allowance on the value of your current car, after a thorough appraisal by the dealer. It will also depend on any special offers applicable at the time, the condition of your current vehicle, the length of warranty and any dealer or manufacturer options and extras that may be fitted. All these aspects can be considered in obtaining a better deal.

The first impression a salesperson will get is of a customer who has looked after his car, and who has kept a record of the vehicle servicing and any other relevant documentation. His job of valuing your car becomes much easier and consequently he will be able to offer you a very fair price. Remember that an attractive, clean and well looked after car can justify a higher selling price to the dealer in question.

Dealers would normally give wholesale values for car trade-ins, taking into account the cost of reconditioning and servicing, and making the vehicle desirable for the next potential owner.

Most manufacturers also offer special option purchase plans on new and nearly new vehicles. Put simply, depending on the length of time that the plan is over (eg.24/36 months) the vehicle will have a manufactureres guaranteed future value, and this amount is deducted from the initial cost of the vehicle leaving the balance to be paid over the plans agreed months. This would mean that at the end of the plan you can either hand the vehicle back, ask the dealer for a trade in price, and should this be more than the future value use the difference as a deposit towards another new vehicle. Or you can re finance or purchase the remainder, (the manufacturers future value) .

The main advantage of this type of deal is to keep your monthly cost down and also protect against any rapid deterioration in second-hand car prices. Once the manufacturer has decided on your car's future value, the figure is guaranteed and you will have an accurate value should you wish to trade the vehicle at the end of the plan.

Trade-ins are vital in keeping dealerships in business; and buyers like them because the whole buying and selling process is made so easy for them. Moreover, most buyers are commonly satisfied with their trade-in transactions, and get a very good deal.

If you would just like an idea about the value of your car before you approach a dealership you can take advantage of online car evaluation websites. These sites have online forms that you fill in. Try to be as honest as possible to get the most accurate quote. The forms are easy to fill in and only take 10 minutes or so. They ask all sorts of questions about the age and condition of the car both inside and out. In most cases you will receive an email of how much your car is worth. You can then use this information as a guide when you do approach a dealer.

But important to remember, on line valuation sites do not buy trade-ins!


Current Motoring affairs brought to you from http://www.motorparks.co.uk/ Visit http://www.motorparks.co.uk/jsp/index.jsp?lnk=e11 for more Motoring News and Information

No comments: