Dubai: It is often thought that one can park their old, used car in a dealership and in return, drive away with a brand new and shiny vehicle. So profound are the myths surrounding the automotive trade-in business that it’s no wonder customers are often perplexed as to how the procedure works, which can lead to unfulfilled expectations and disappointment.
The first step in trading in a car is usually accompanied by a test drive, a thorough check by the mechanic to ensure that the vehicle is in sellable condition and of an appropriate age with great mileage. The salesperson will then evaluate a trade-in value, which in most cases could be negotiable. The final agreed-upon trade-in value will be deducted from the cost of the new car. The advantages are worth it when a trade-in is facilitated by professional experts. Selling a car privately can take weeks, or even months. There are also ‘lone agents’ that delay the sale before making it an equitable exchange. A dealership will be keen to take the vehicle off your hands on the same day after the evaluation. Oftentimes, dealerships will also purchase your car even if you decide not to trade it in for a new one.
An infinite amount of paperwork and logistics is usually involved in selling a car privately, not to mention the risks of a flopped or undervalued sale. In comparison, where a licensed and registered dealership is involved, there is a quality guarantee and the process is handled by professionals from evaluation all the way through to new car delivery. Customers opting for a trade-in will notice that it is easier now with low down payment assistance options and no upfront payments or deposits at many dealerships. In terms of positive equity, if the car is valued at more than what is owed, the money can be utilised as a down payment on the new car. Some dealerships offer to purchase the old car to reduce any outstanding loan and pay the balance. The benefits allow the customer to fund their new car and drive it out of the dealership on the same day.
Experienced evaluators represent their company in transactions, so the market valuation is fair. During a private sale, the seller runs the risk of being pressured by the new owner into paying for mechanical issues that may arise. But dealerships undertake accountability for the drivability of the vehicle once it has been traded in, and don’t contact the seller post sale.
Though few and far between, there are a few disadvantages to trading in your vehicle like maintenance not being considered or the dealership not wanting to accept a used car trade-in if the vehicle is out of favour.
The author is director at Arabian Automobiles Company
