Selling a car and buying a new one became fast and simple with trade-in offers from dealerships. But many buyers doubt – what’s the catch? The Indy Auto Man team explains how trade-in works and why it is a win-win deal for both parties.
How the program works
The bottom line is simple – a customer arrives at a car dealership in an old car and drives home in a new one the same day. The dealer buys a used vehicle at an appraised value. This amount is deducted from the new car price or becomes the down payment on the loan.
The dealer carefully checks the car. The main requirement is legal purity: the vehicle must have no arrests or other restrictions. At the same time, an unpaid loan will not become a problem: many dealerships accept cars that are not paid off.
The vehicle must have a legible body, engine, and chassis numbers that match the information on the Registration Certificate.
The technical condition is also assessed. It must be fully equipped and on the move. Minor breakdowns and damage to the body will not be an obstacle to redemption but may reduce the cost. There are no standards – the specialists decide on the spot.
The dealership has the right to set additional requirements. Authorized dealers often have a list of brands and models that are subject to a trade-in program. At Indy Auto Man, there are restrictions on the years of manufacture, trim levels, additional equipment, and tuning. If the customer has doubts about whether the car is suitable, he or she can always request an online consultation.
What to expect from the process
After clarifying all the trade-in program details, a car owner takes the car to the dealership. It goes to the service area, where mechanics carry out diagnostics. The valuation schemes are similar – the dealer’s premium and the cost of eliminating all faults are deducted from the market value. After the procedure is over, the customer receives a firm offer. If it does not meet expectations, it is always possible to refuse the transaction. The process is hundred percent free.
If the customer agrees with the assessment, it is time to choose a new car from the proposed models. The choice is limited only by the budget – there are always financing options, if necessary.
The customer needs an ID card and the vehicle’s title to carry out the transaction. When trading-in a car, two contracts of sale are concluded – one for an old car and one for a new one. Less often, the parties sign an exchange agreement, which indicates the difference in the cost of two vehicles.
Advantages and Disadvantages of the Program
The main advantage is speed. The usual time between selling an old car and buying a new one is a few hours. If the car owner puts up an ad on the Internet, the car-selling process may take weeks and months. This is especially inconvenient at the end of the year – dealers offer limited discounts on their assortment, and there is no time to wait for a buyer.
The second benefit is security. By contacting a reliable dealership, the likelihood of meeting scammers reduces to zero. The car dealer guarantees the one hundred percent legal purity of the transaction. If the customer has any claims after signing the contract, it is easy to protect the interests under current legislation.
When trading-in a car, it is much easier to get a loan. Even if buying a used car, the bank will give out money more willingly. There are two reasons – cooperation with a trusted car dealership and an initial payment increased by the cost of the previous transport. The risks are minimal for each of the parties involved in the transaction.
Many car owners believe that trade-in deals are less beneficial because dealers underestimate vehicles. In fact, they have to spend time, effort, and money to sell a used car, and their share is excluded from the final value. However, this difference is often offset by a discount on a new car.
Is it worth it to use the trade-in program?
Whether trade-in is the best option depends on the priorities. For those who value their time and want to get a new car as quickly as possible, the pros of the trade-in will far outweigh the cons.
If you have no time limit, you can try to sell the car yourself. But remember that this method is not always more profitable – any buyer will want to save money and get a discount, so you will have to defend your price, sacrificing your time and nerves.