Trade-in - a system for buying a car, when the old one is accepted as a new one. Trade-in

A new car is always a joy. Of course, not all car enthusiasts can immediately pay the cost of the car, which is why many of them apply for a car loan. But today there is another profitable Trade-In program, let's see what it is.

The program is designed for those who already own a car. The car must not be quite old.

For example, you have been operating a vehicle for 3 years, it is in excellent condition. You have accumulated some money and plan to spend it on buying a new car. If at the same time you are trying to avoid unnecessary cost overruns, then it is best to pay attention to the Trade-in program when buying a car.

What is Trade-In in a car dealership

You exchange your old car for a new one, paying a small surcharge. From English, “trade-in” means the process when an old item is handed over in order to purchase a new one.

We can say that this is a mutual exchange, using which you will exchange an old car for a new one, or choose a used car of a suitable model. Everything depends on your desire. Car dealerships offer a fairly large assortment, you will always find a new model.

At the dealership, experts will evaluate the old car, announce its value. This amount will be deducted from the cost of the new vehicle you wish to purchase. As a result, you will not only sell your old car, but also pay less for a new one.

Video: What is a Car Trade-in - an overview of the service

Advantages of Trade-In when buying a car

There are a lot of advantages of the Trade-In system, we can list the following:

• The exchange process will take no more than 4 hours.

• The dealership staff will help with the paperwork.. You do not have to go to the traffic police, all documents are drawn up on the spot.

• You will save on pre-sale preparation of the car. You will not have to place ads, fix defects in the car, and pay for parking at the car market during the sale. You are selling the car as it is.

• The new car has a warranty. You will receive a vehicle in good condition. His history will be "clean", the security of the transaction is guaranteed. All defects and shortcomings, if they arise during operation, you can fix for free.

• It is possible to conclude a deal without depositing your own funds. To do this, use trade-in and credit.

• Many car dealerships offer bonuses to customers. This is an opportunity to pass a technical inspection for free, or other pleasant little things.

Program disadvantages

• The choice of new vehicles that can be purchased under the program is limited.
• The buyer cannot take part in the auction, or order a car of a certain configuration.
• You will have to conclude a trade-in deal immediately, on the same day.

Terms of the Trade-In Program

In order for a car dealership to accept your car under the Trade-In program, it must meet the following requirements:

• service life not older than 10 years;
• must be in good working order;
• appearance must be in good condition;
• the make and model of your car must be in demand among the population (be liquid).

A package of documents is required to participate in the program

• Passport of the owner of the car
• CTC (Certificate of Registration)
• Technical inspection card (if available)
• Service book (if available)
• Car keys 2 sets (for some cars 3 sets)
• Power of Attorney - if the car is rented by a trustee

How to evaluate a car in Trade-In

When evaluating a car in a car dealership under the Trade-In program, keep in mind that the cost of a car will be affected by:

• the appearance of the car (the presence of chips, dents, rust, scratches);
• popularity of the brand and model of the car;
• serviceability of the car;
• equipment;
• car interior (whether they smoked in it or not, worn steering wheel, gear lever, worn seats, etc.)

On average, by selling a car under the Trade-In program, you will lose 10-15% of its market value, but you will sell it faster and without hassle.

Video: How to return a car to a car dealership under the Trade-in program with the maximum benefit

How Trade-In works

• The vehicle owner must choose a car dealership. The service is implemented by many organizations, you can easily find them in large cities.
• Bring your used car into the showroom.
• The specialist will assess the condition of the car and name the cost. You will have to pay a small amount for the appraisal service.
• If you agree with the offered price, carefully study the terms of the contract.
• After that, choose a new car and pay the required amount. Once you take ownership, you can use the new machine.

When exchanging a car under the Trade-in program, you remain the owner of the old car until the new owner registers the car after its purchase, since the car dealership does not buy the vehicle into ownership, but acquires it under a sale and purchase agreement with further resale.

Video: Trade-In car registration in detail

Car loans under the program

In the absence of funds, but with a strong desire to buy a car, contact the bank. Find out which financial institutions work under this program, then apply for the most profitable one.

Alternatives

To save money (10-15% of the market value when selling a car through Trade-In), a great alternative is a car auction. With it, you can earn up to 150,000 rubles for your old car with mileage and use it to buy a new car.

05.10.2018

Content

Trade-in has a lot of positive feedback from motorists. This is due to the advantages of the program in comparison with other possible exchange schemes. Before exploring all the positive aspects of using the service, it is worth understanding what exactly trade-in means.

What is Trade-In

Trade-In is translated as "exchange". Car dealers use this word for the universal name of the program, the essence of which is to accept used vehicles against the purchase of new ones. The price of a new vehicle is reduced by the estimated value of the car taken into account.

This service is actively offered by dealers and car dealerships to stimulate turnover. Under the program, you can get both a completely new car (without mileage), and a car that someone already had in their possession.

The service has been operating for more than 20 years and is the most popular in the domestic market.

pros

There are quite a few, but here are the main ones:

• The transaction can be completed in 1-2 days.
• Ease of procedure. The car owner only needs to drive the vehicle into the salon.
• Big choice. There are a huge number of vehicles of different classes on sale, and this can only mean one thing - everyone is guaranteed to be able to find an “iron horse” to their liking and wallet.

Thanks to participation in the program, the client has the opportunity to drive a brand new car during the day, since the exchange system has been worked out to automatism and transactions are carried out without delay.

Minuses

There are relatively few of them:

• Current age restrictions. If the car being exchanged is 10 years old or more, then the probability of its purchase by the salon tends to zero.
• Strict requirements for technical condition.
• Low admission cost. Not everyone is satisfied with a significant reduction in the price of a leased vehicle.

How the Trade-In program works in car dealerships: scheme

Almost all car owners know how much time and effort it takes to change an old vehicle for a new or used one according to the standard scheme, which includes:

• Pre-sale preparation;
• Removal from the register;
• The sales process carried out through the media, car dealership, auto market;
• Buying a new "iron horse".

All this can drag on for many months.

The main drawback of such a system is a high probability of “running into” scammers, which is why, at best, you can lose your car, and at worst, your life.

The easiest and safest way to sell a car and buy a new vehicle is a trade-in, which includes:

• Choice of car dealership;
• Estimation of the rented car;
• Choosing a new car;
• difference surcharge;
• Making a deal.

It is best to evaluate a car in several car dealerships at the same time, since the price that dealers are willing to pay for the same car can vary greatly, and the task of a car enthusiast is to find the most profitable option and sell it as expensive as possible so that you have to pay less extra for a new car.

Exchange by Trade-In

It is very easy to take part in the program, and the participation algorithm is as transparent as possible. The key point of this process is considered to be the assessment of cars, because the discount on the purchase of a new vehicle depends on the estimated cost.

The assessment begins with a legal due diligence, which includes an analysis of the information:

• About fines and identification of data whether the car is listed as stolen;
• About a possible arrest or bail on a car.

All vehicles are rigorously tested. To speed up the process, before driving the vehicle to the salon, it will not be superfluous to find out if there are any outstanding fines in the traffic police, and prepare the vehicle for inspection (at least wash the car outside and inside, replace the glass if there are cracks, etc.).

If the legal check is passed successfully, the specialists proceed to the technical inspection of the car. The final price of the car will depend on this.

Discount

The discount offered on a new car by a car dealership depends on the price of the car that is trade-in. However, the dealer will value the car for at least 30% less, even if it is in perfect condition, than you can get by selling it yourself.

The low price and the desire to get more money repels many from participating in trade-in, but at the car dealership they guarantee a quick, and most importantly, safe purchase and sale of vehicles.

Many salons provide additional discounts, bonuses and gifts when participating in trade-in.

Other conditions of the program when buying a car

The main goal of the salon is to get a good car at the best price, and at the same time increase turnover by selling new cars. But, the car that was purchased by trade-in will again be put up for sale, already at a higher price. So the salon puts forward rather strict conditions for accepted cars:

• Age and mileage. It is desirable that the car is from 5 to 10 years old, and the mileage does not exceed 100 thousand km.
• Technical condition. The vehicle must not have any major faults.
• Appearance. The vehicle should look presentable both outside and inside.
• Brand. In a car dealership, they will only buy the brand of car that is popular in the market.

Vehicles that are in disrepair or have serious problems will not be eligible for the program. The salon takes care of the elimination of minor defects and breakdowns, but you should understand that the purchase price of such a vehicle will be significantly reduced, which means you will have to pay more for a new car.

Reading time: 4 minutes

Trade-in is an agreement on the mutual repayment of obligations to pay for goods. In this case, the car serves as a partial contribution for a new or used car. It is not difficult to become the owner of another car using this system, you just need to deliver the old car to a car dealership. The salon employee will determine its cost and calculate the amount that the owner will have to pay for a new car. To decide whether such a deal is profitable, you need to figure out how a car is valued and which cars are not taken for trade-in.

How the system works

According to experts, up to 80% of cars are sold all over the world according to the system we are discussing, which has been operating for several decades. Although this scheme is far from being so popular in Russia, the trade-in car exchange is also of interest to domestic motorists.

Here are some of the perks of the deal:

Many car owners complain that the car is sometimes not sold for months. And all this time you need to meet with potential buyers, update ads in newspapers or take the car to the market. To ensure its presentation, you have to regularly go to the sink.

Trade-in allows you to shift the worries of finding buyers to a car dealership. Employees also draw up all the necessary paperwork and.

These benefits will be appreciated mainly by busy people.

Along with this, it should be borne in mind that car dealerships do not work for free. This means that you will have to pay something for the provision of the service. As a rule, this translates into some loss of funds due to the valuation of the subject of sale below its real market value.

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What is the assessment process

How much a car is valued at trade-in by car dealerships depends on the age of the car. It is generally accepted that in the first year of operation, the vehicle loses approximately 20% of its original value. Then the price decreases by 10% with the onset of each subsequent year.

To get a client, car dealership employees claim that they take any car into account. However, it is not. Business rules require that the subject of sale be liquid, that is, that the salon should not have problems with the subsequent sale. The main requirement for a car: age up to 10 years and cost up to 1.5 million rubles. Dealers are most interested in five-year-old foreign cars.

Even if the salon agrees to take an old car, you need to be prepared for the fact that they will offer a meager amount for it.

Experienced drivers believe that the deal will be more profitable if you bring a spare key, service book and receipts confirming the work. Based on the documents provided and the results of the conversation with the owner, the manager will try to recreate the history of the car: the number of owners, the availability of a guarantee, who was entrusted with maintenance and other significant circumstances.

After compiling the history of the car, it is alternately driven to the sink, to the site for visual inspection and to the service. Specialists will record all identified mechanical failures, problems with electronics, varnish defects, etc.

Criteria for evaluation

Understanding how a car is valued for a trade-in will help you make an informed decision. As a rule, crediting is carried out according to a number of criteria:

1. Machine brand.
2. Year of manufacture.
3. Optional equipment.
4. Engine power.
5. Availability of a set of documents.
6. The number of kilometers travelled.
7. Options set.
8. Technical correctness.
9. The presence of damage to the body and paintwork.

These points are assigned a certain number of points, which are subsequently added up to determine the value of the car.

Drivers who have already experienced how a car is evaluated in a trade-in note that the loss of a key and the lack of a reliable service history are a wake-up call for experts.

If the driver himself is well aware of the weaknesses of his car, an online assessment will save him time and nerves. By calculating the preliminary cost of the car in advance, he will be able to avoid disappointment.

In addition, having received a general idea of ​​​​the price that will be assigned to the car, he will more realistically approach the choice of a new model or begin to select what is feasible.

How to calculate the cost of a car by trade in

The easiest way to find out the value of a car is to use an online trade-in car valuation calculator. You can make preliminary calculations at any time of the day, and for this you don’t even have to leave your home or office. It is enough to enter the characteristics of the car and your contact details. A similar service is provided on the websites of many car dealers. Please note: the more detailed the questionnaire, the more reliable the answer will be.

Of course, an online trade-in car valuation will only give a potential customer a rough estimate. As mentioned above, the final price depends on many factors, including some that the car owner may not be aware of. However, if he tries to give the most objective answers and, if possible, uploads high-quality photos of defects, the result will be more realistic.

The most accurate answer can be obtained if you calculate the cost of a car in a trade-in using a calculator posted on the website of the company whose services the owner is going to use.

Assessment nuances

It is noticed that damages on a body - scratches or dents - cause the greatest dissatisfaction of dealers. Many of them proceed from the fact that if there is even a small defect, the salon will have to invest in painting the entire element. This will reduce the cost of the car by several thousand more.

Trying to hide the damage by using the services of a car painter will not increase the chances of selling the car for a higher price. Car dealership employees always use a thickness gauge - a device that evaluates the thickness of the paintwork. They will immediately determine whether any element has been repainted, and they will suspect the fact of an accident. It will be very difficult to prove that the cause of the damage was a minor incident near the supermarket.

It is also impossible to exclude pitfalls when drawing up a contract with unscrupulous car dealerships. Some of them draft the treaty in such a way that its provisions can be interpreted in two ways. In this case, even an experienced lawyer will not be able to help pick up the car without paying for a number of services and collecting interest when the agreement is terminated.

Many salons do not charge money for assessing the value of the car. Some are even willing to reasonably bargain with the client. To compare conditions, you can visit another car dealership or evaluate a car in a trade-in online to make sure that the intermediary is not disingenuous.

Trade-in. Advantages and disadvantages. How not to be deceived: Video

Trade-in is a profitable program for the interchange of an old car for a new model. Of course, you have to pay extra, but sometimes you can make most of the payment due to the existing vehicle. But what will that part be? How to price a car for trade-in? After all, the benefit of the purchase depends on the result of the assessment.

More about the system

So far, the trade-in system has not become widespread in our country. There are several reasons. The main one is not the easiest way of taxation for car dealerships that provide such a service to customers. On the part of buyers there is distrust of everything new. But abroad, trade-in is popular - up to 80% of used cars are sold in this way.

The sales process goes like this:

1. The car that is available must be delivered to the car dealership;
2. The vehicle is being assessed;
3. Its cost is calculated;
4. The car is deregistered (at the same time, a power of attorney is issued for an employee of the salon);
5. A new model is selected (it can also be used);
6. Payment for the purchase, taking into account the sale of the old vehicle;
7. Registration of the car in the property of the client, registration.

The whole process will not take more than 4 hours. The transaction is legal, all actions of the salon employees are transparent. At any stage, you can stop and pick up your property, but in this case you will have to pay for the examination. It is diagnostics that is of key importance in determining the value of the car. So how do you price a car for trade-in?

Before examination

You need to consider which car can be sold on trade-in. Before proceeding with the diagnosis, specialists may offer to fill out a special form. It states the following:

• Car model and brand;
• Age (year of issue);
• Paint color;
• Information about the engine (power, volume);
• Description of the gearbox;
• mileage;
• Description of additional equipment.

The last point also greatly affects the estimated price of the car. Tuning, buying additional items (especially if it happened recently) can significantly increase the cost of an iron horse. You can describe in detail the advantages and disadvantages, existing defects.

Now you can evaluate the car on the trade-in system.

Evaluation procedure

It will be carried out by a professional. What is he paying attention to?

1. For the car model. There are cars that are of better quality and more prestigious, which will be bought more willingly in the future. Liquidity is being assessed: most motorists prefer foreign cars to domestic models.
2. For technical condition. Of course, the better it is, the more money you can earn from the sale of such a vehicle. The appraiser will check the paintwork, the presence of all the necessary elements and their quality, wear, condition of the cabin and appliances in it. Assessing the condition of key nodes is very important. During the pre-sale preparation, the dealership employees will deal with the correction of all possible defects and damages. And this costs money, which the salon compensates for by reducing the price when calculating the cost of a car to be handed over. Cosmetic repairs also cost money, but not so much.
3. Complete set, that is, the presence of additional equipment. It can significantly raise the price of the car, even sometimes exceeding the market level.
4. The age of the car also matters. Sometimes they say that you can return any car in any condition. This is not entirely true. It is to age that salons impose restrictions. To successfully sell a car, it should not be older than 6-10 years. Therefore, going to a particular salon, it is better to know its conditions in advance.

But not only the condition of the vehicle affects the assessment in a trade-in - you can evaluate a car by other qualities. The legal cleanliness of the car is of great importance. The employees of the salon will first of all “break through” it in the database, check it in the lists of stolen or arrested models, and also whether the car is pledged (in a bank or pawnshop).

By the way, if the car is really pledged, then this is not always a reason for refusing to sell it on trade-in. In the case when its owner regularly made all contributions, did not get into major accidents, does not have penalties from the bank, he can ask to refinance his loan under such a system. That is, to hand over your old credit car and purchase a new one - also on interest-bearing debt.

To evaluate a car in a trade-in means to check the situation on the car market. Sometimes this matters. This takes into account:

• The price level in a particular segment;
• The position of the state in relation to certain models of cars (or their manufacturers);
• The “prestige” of a car is in terms of purchase (demand) in a specific period of time.

What does the last paragraph mean? Any car after each year of its operation decreases in value. For most machines, this figure is at the level of 20%. But for some models, it is 10-15% - for those that are best bought, or have the highest quality.

General nuances of the assessment

To evaluate a car according to the trade-in system, the salon needs to make an effort - to spend labor and technical resources. Therefore, the procedure cannot be free. But if the car owner agrees with the results of the assessment, and is ready to make a choice of a new car, then this amount will be “forgiven” to him.

The advantage of selling cars through a showroom with a trade-in system is the ability to close a deal quickly. At the same time, the client can be confident in its security and transparency. The purchased car will be covered by all guarantees, and the sold vehicle will not have to be messed with to put it in order for sale. The end result is a win-win deal for all parties.

It is not difficult to understand how to evaluate a car using the trade-in system. But one should not think that any iron horse will be happy in a car dealership. Still, the most popular are those that are no more than 3-4 years old, and the technical condition allows you to get by with minimal repairs before selling.