Is it better to trade in your car at a dealer or sell your vehicle privately? How are trade-ins valued? What does trading in your car really mean? Where does one start the process? Here’s what you need to know about trading in your car…
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When buying a new or pre-owned car, your first option is to trade in your current vehicle; should you accept what the trader offers for it, that value will effectively reduce the sum that you’ll need to pay – or look to have financed – to acquire your next car. Might it be better to sell your car privately? How are trade-ins valued? What does trading in your car really mean? Where does one start the process?
motus.cars, supported by Motus Nissan (previously known as Imperial Select), breaks down what you need to know about trading in your car, from the real car people…
What does it really mean to trade in your car?
No matter how long you’ve owned your vehicle, whether it is in fair or excellent condition, whether you bought it outright (cash) or still owe money on it, it has value and, in the case of a bank-financed car, as long as it is deemed to be worth more as a trade-in than it would cost to settle the existing finance agreement, that value can be used in exchange for a credit towards the car you intend to purchase.
How does my trade-in car get assessed and valued?
When taking the vehicle to the dealer for an assessment (the process through which the trader determines what they’ll offer for your vehicle), it is important that you provide as much information as you can.
A good idea is to enquire about the book value of your vehicle, as this may give you an idea of what it is worth (the “book” is an industry-determined price guide that dealers use for reference, it lists the recommended trade and retail values of cars – based on their mileage and condition – up to 10 years of age, or even older than that).
You can buy a report from TransUnion, for example. However, remember that this will only be an approximate value and the final price offered will be dependent on various criteria.
Some important details you should provide:
- Vehicle make and model, the exact derivative
- Is the vehicle still financed and how much do you owe the bank (or institution) from which you borrowed the funds to buy the car?
- Full-service history – it is a good idea to keep all service and maintenance receipts for this reason
- Any existing warranty, service, and maintenance plans still in place – if there is any time remaining on your service plan, maintenance plan or warranty, it will add to the value of your vehicle
- The spare key and other items that came with the car – pin numbers for the audio systems, Bluetooth-device instructions and details referring to immobilisers, alarm and tracking systems
The dealership wants to know how well the vehicle has been cared for – so it is a very good idea to make sure your car is clean. A clean and well-looked-after car is likely to attract a higher trade-in value.
Other things the vehicle valuator takes into consideration are:
- The popularity of the car’s make and model
- Year of first registration
- Mileage, ideally it should not be higher than 25 000 km per year since the car was initially registered.
- The vehicle’s overall condition
- Any additional accessories or non-standard specifications
- The exterior colour of the car may also play a role. Tip: white cars have the best resale value and lowest insurance premiums due to their high visibility on the road
If your car has been in a major accident, it would be best to get a reputable panel beater to repair the damage before you sell your car. Any sign of a major accident will decrease the value of your vehicle.
The motus.cars network has a unique electronic valuation system, which enables a motus.cars dealer to compile a report that includes a detailed verification of the make and model of your car. They also establish the correct value and can offer you the best price, thanks to motus.cars‘ broad and diverse dealer network, which covers all the major car makes and models.
How long does the process take?
The dealer will be able to give you an indication of the trade-in value immediately after the vehicle assessment is completed. As for the rest of the vetting and verification (to give you a complete report and solid offer)… that should not take longer than a few hours.
Disadvantages and advantages of trading in your car?
Disadvantages:
Many people have the misconception that you will get more money if you sell your car privately, but there are risks, hassles and even costs involved with the process; it can also be very time-consuming.
Advantages:
- Ease of service – the dealer will handle everything that needs to be done from settling the outstanding balance with the bank to ensuring the vehicle is taken out of your name, to delivering your new vehicle
- It is fast and convenient – you will not need to worry about the task of advertising the car, meeting with potential buyers and transferring ownership
- It is safer – you will not be at risk of being scammed between processes
As a rule of thumb, it works out cheaper to let a dealer recondition your car after you’ve traded it in. What you would lose on the trade-in value will be marginal compared to trying to repair the car yourself before you dispose of it/sell it on.
If you would like to get your car valued as a trade-in, why not book a test drive, or enquire about your new dream car on motus.cars and get your current car valued at the same time!
Make use of free tools available to further help you decide what the best vehicle finance option is for you. Use these simple affordability and finance calculators to help you determine what you can afford and what finance option will be best for your needs.
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