Trade-in system: what is it?

Trade-In - what is it and how to change a car using the Trade-In program

Trade-In system: what is it?

The Trade-In program has been gaining increasing popularity among domestic motorists in recent years. And this is not surprising, because the Trade-In system has many advantages among schemes for exchanging an old car for a new one, and mostly positive reviews from car owners. So, Trade-In - what is it and how does it work?

It's actually not that complicated. The Trade-In program allows you to easily and quickly replace your used car with a new one in one place - right at the dealership. Below we will describe all the features of this system.

Each car enthusiast decides for himself how to update his car fleet. Trade-In offers to do this with minimal investment of time, moral and physical strength. Without any problems, a motorist can transfer from an old car to a new car within a day, delighting himself and his loved ones.

The usual scheme for replacing an old car with a new one

Most car owners have encountered the procedure of buying and selling a vehicle.

The sequence of actions is approximately the same for everyone:

First, the car undergoes pre-sale preparation.
Next, the vehicle must be deregistered with the state registration authority (tips on how to sell a car without deregistration).
And finally, the car remains to be sold.

This is where the car owner has a choice. He can sell a car:

On the market,
in a commission car dealership,
through the media (newspapers, magazines, Internet).

Having earned a certain amount of money for your car and adding the accumulated funds, you can ask the price of new models. But the time it will take to sell your old vehicle can be weeks or months. And how much physical and moral expenditure will this mission require?

The Trade-In system makes it much easier to replace a car.

Trade-In program - a quick and convenient car replacement scheme

A simple and worry-free way to update your car is the Trade-In system. Vehicle replacement can occur within a few hours.

The Trade-In scheme works as follows:

The motorist needs to drive an old car to the auto center. The center's specialists will diagnose and evaluate the car.
If you have enough money for the additional payment, you can immediately go home in a brand new car.

As a result, the car enthusiast receives a number of advantages:

easily replaces an old car with a new vehicle,
saves valuable time on selling and buying,
preserves the nervous system when preparing documents,
can test drive a car you like,
the likelihood of meeting with scammers, swindlers and bandits is eliminated.

Pitfalls of the Trade-In system

However, this system also has significant drawbacks that somewhat hinder the development of Trade-In.

The main disadvantage of Trade-In is the low residual value of the old car. Auto centers offer about 10-15% less for a used vehicle than a car enthusiast can get when selling it on the market. This is explained by the fact that the salon will have to spend certain funds to prepare the purchased car for further resale.
The next negative aspect of the Trade-In system will be the limited selection of new cars. Therefore, you should immediately familiarize yourself with the line of cars that are involved in the Trade-In system of this car dealership.

Description of the exchange scheme under the Trade-In program

To use the Trade-In service, you need to have a number of documents with you. This:

transit numbers,
confirmation of deregistration of the vehicle,
registration certificate,
owner's passport.

After undergoing diagnostics and evaluation of the old car, you will need to agree on the residual value of the vehicle. When the parties come to a common denominator, you can begin choosing a new car and its design.

Some auto centers accept all used cars, while others give preference to certain brands and impose age restrictions. Therefore, you first need to ask whether the old car will be interesting for this salon.

Many auto centers offer a loan for a new car, which takes place on the spot within 20-30 minutes. This becomes an additional argument for replacing the vehicle using the Trade-In system, because the motorist will not even have to collect the required amount for an additional payment.

Through the Trade-In system you can purchase not only a new car. Car dealerships also offer used cars that have undergone pre-sale preparation and are in good technical condition. Such a car will serve its owner flawlessly for several years, without causing hassle or unpleasant surprises.

Video: secrets of Trade-In car dealerships

Source: https://unit-car.com/termini-i-sokrasheniya/146-trade-in.html

Trade-in program (Trade-in) what is it when buying a car

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

The program was created for those who already own a car. The car must not be completely old.

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

What is Trade-In at a car dealership?

You exchange your old car for a new one, making a small additional payment. In 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 exchange an old car for a new one, or choose a used car of a suitable model. It all depends on your desire. Car dealerships offer a fairly large assortment, you will always find a new model.

At the car dealership, experts will evaluate the old car and 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 - review of the service

Advantages of Trade-In when buying a car

The Trade-In system has a lot of advantages, the following can be listed:

The exchange process will take no more than 4 hours.

The car dealership staff will help with paperwork . You don’t have to go to the traffic police; all documents are completed on the spot.

You will save on pre-sale preparation of the car . You won’t have to post ads, correct car defects, or pay for parking at the car market when selling. You will sell the car as is.

The actions of the car dealership employees are transparent, there are no hidden schemes . If the terms of the contract or the price are not satisfied, the owner of the car has the right to refuse the transaction.

The new car comes with a warranty . You will receive ownership of 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, can be corrected free of charge.

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 undergo a free technical inspection or other pleasant little things.

Disadvantages of the program

The selection of new vehicles available through 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 and conditions 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 is not older than 10 years;
must be in working and good condition;
the appearance must be in good condition;
The make and model of your car should be in demand among the population (be liquid).

A package of documents is required to participate in the program

PTS
Car owner's passport
STS (Certificate of Registration)
Technical inspection certificate (if available)
Service book (if available)
Car keys 2 sets (for some cars 3 sets)
Power of attorney - if the car is handed over by an authorized person

How a car is valued at Trade-In

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

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

On average, when selling a car through 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 using the Trade-in program with maximum benefit

How Trade-In works - completing a transaction

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

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 as its own, but acquires it under a purchase and sale agreement with further resale.

Video: Car registration by Trade-In in detail

Car loans according to the program

If you have no funds, but have 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 via Trade-In), an excellent 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.

Where to buy a car using the Trade-In program

Source: http://pddgarazh.ru/kuplya-prodazha/trejd-in.html

Pros and cons of trade-in – Kolesa.ru

Trade-in (or trade-in) is a service for accepting your car in exchange for the purchase of a new one, the price of which is reduced by the cost of yours, which is accepted as credit. This service is provided by dealers and car showrooms, and one of its main goals is to stimulate sales of new cars.

2. What is the procedure for buying and selling using the trade-in service?

The classic procedure for exchanging an old car for a new one is simple: you come to the dealer, he diagnoses your car and evaluates it, and if the offered price suits you, you sign a purchase and sale agreement for your car with the dealer and immediately purchase a new one, taking into account the “discount” , equal to the price of an old car. Accordingly, the dealer will deal with the sale of your old car - and you drive away with a new one.

3. What are the advantages of the trade-in service?

The benefits that a car owner receives when using a trade-in service are obvious. A car dealership relieves him of the need to sell an old car on his own: coming up with and publishing ads, taking dozens of calls and going to shows with capricious buyers, and then haggling until he sweats.

In addition, with the right choice of dealer, the risk of fraud when completing a purchase and sale tends to zero. Little things like the absence of the need to do the so-called pre-sale preparation of the car and go with the buyer to the traffic police to re-register at the latter’s request are also on the list of positive features of the trade-in.

And this approach, as a rule, eliminates the need to be without a car while buying a new one - if the model you need is in stock at the dealer, you come to him with an old car and leave with a new one. Of course, to purchase this new car, you will also have access to a car loan - this can also be considered a plus.

And finally, one of the main advantages at the moment is that the dealer provides an additional discount on a new car if it is purchased at a trade-in.

Here the amounts vary greatly from brand to brand and from model to model: on a budget car you can save about 10-60 thousand, on a middle-class car - 50-150 thousand, and sometimes a good half a million can be knocked off the price tag of a premium sedan or SUV.

4. What are the disadvantages of the trade-in service?

However, you should not assume that a trade-in is an absolutely ideal way to change a car: there are also plenty of disadvantages and nuances. One of the main ones is the low estimated value of the car you are renting out: the car dealership is very likely to pay a price below the market value for it.

And this is not a hoax: you should also soberly understand that the business needs profit, and your car will be put up for resale with associated costs. Of course, no one will repair it or do complex maintenance, but washing, dry cleaning and the salary of the manager of the used car department will be included in the potential profit for your car.

Therefore, be prepared for the fact that the offered price will be several tens of thousands of rubles less than those indicated for similar items in private advertisements.

Another feature of a trade-in that reduces its attractiveness is the limited choice and sometimes the imposition of a car. After all, if you want to drive away in a new car the same day, you need to choose one of those available at the dealer.

But here all the standard “tricks” of overly enterprising sellers can await you: they will persistently offer you a car that is “convenient” for them and convince you to install additional equipment, and often overpriced “extras” will already be installed on the car being sold without the possibility of them refuse, which significantly changes the final price tag and reduces the joy from the discounts received.

In addition, it is worth remembering that at a trade-in you can usually purchase not only a new car, but also one of those that were handed over to the car dealership by other owners.

However, in this case, the purchase loses the charm of novelty and conventional ideality: you should not expect that, for example, a Ford car parked at a Kia dealer has been thoroughly checked and carefully serviced - such a purchase should be approached as a standard market procedure.

And given that the requirements for cars offered for trade-in are low, the risk of encountering a rather problematic car at a car dealership is palpable.

The only advantage in this case is the reduced risk of having “documentary” problems with the car: as a rule, dealers carefully check the cars accepted for trade-in for legal purity, and buying a credit or seized car from them is almost impossible.

5. What pitfalls exist in the trade-in service?

As mentioned above, when planning a trade-in, it is worth assessing the car in advance and agreeing with the dealer on what kind of car will be purchased - you may have to order it and wait, and the dealer must agree to this. It is also worth understanding that the estimated value of your car announced to you may change during the waiting period - the conditions for maintaining it should be agreed upon with the dealer.

Articles

Complete the procedure for buying and selling a car - that is, buy or sell an existing car, fulfilling all documentary requirements. A purchase and sale agreement is a simple document, you can draw it up...

The main condition for the accuracy of everything we have listed above is the honesty and official status of the dealer.

If you are dealing with an unofficial dealer of a brand or even with a multi-brand car dealership that sells everything, then you should not expect any guarantees - price tags, configurations or purchase conditions can change overnight.

Therefore, when signing any contract with an official dealer, you should be careful, and with an unofficial dealer, you should be three times careful.

Another way to take money from the car owner can be all sorts of additional conditions.

If you are offered to carry out any pre-sale preparations or repairs at your own expense, including them in the mandatory conditions of the trade-in service or promising to compensate for the costs through a discount on a new car, it is highly likely that you are being deceived.

The procedures will be carried out in the “interested” service center, the fact of the repair will not be confirmed by anything, and additional technical problems that may arise during the “repair” process will remain yours and will further reduce the cost of the car.

Therefore, under normal conditions, all expenses associated with the sale of a car are borne by the dealer - you give him the car “as is” for the amount specified in the purchase and sale agreement - and you definitely shouldn’t agree to do something at your own expense.

You should also not agree to “commission” schemes with dealers and car dealerships that do not inspire confidence. As an alternative to a trade-in, you may be offered help with the sale by displaying the car at the dealership.

This is also fraught with tricky additional agreements, including expensive pre-sale preparation, a fee for a place on the site, a sales commission and paid “qualified assistance” when re-registering a car.

So if one car dealership is not ready to buy your car on its own, you simply go to another one.

6. What is the correct sequence of the trade-in procedure?

When planning to trade-in your car, be sure to visit several dealers and make a preliminary assessment, and also find out about the conditions and discounts that will be offered to you.

Do not hesitate to clarify these details - after all, you need to sell the car as profitably as possible, and the conditions in different car dealerships may also differ.

Having chosen the best offers, conduct an inspection at these dealers: the exact final amount that you will be offered for the car will be announced only based on the diagnostic results. If after this you are offered a price that suits you, you can move on to choosing a new car.

Here, too, you should not be timid: if the desired model is in stock, but it has additional options installed that can be removed or purchased cheaper, try to negotiate their dismantling or reducing their cost.

History knows examples when a dealer reupholstered the seats of a C-class hatchback with leather (artificial, of course), but changed them back to fabric ones from another car by agreement with the client. Removing prohibitively expensive crankcase protection and wheel rims is in the same category.

Of course, the chances of this are not that great, but it’s worth a try. Well, the alternative is to order another car and wait.

When both the desired and existing old car are at the dealer, you can begin the registration procedure. There is nothing unusual about it: first you sign a purchase and sale agreement for an old car with the dealer, and then pay the difference and purchase a new car or draw up a loan agreement for its purchase.

An extremely important point:

in addition to the standard purchase and sale agreement with the dealer, you need to conclude an agreement that will indicate the terms for the sale of your car or the authority to terminate the registration of the car by the dealer - in this case, you will need to issue a power of attorney for these actions.

The point here is that after purchasing a car, the dealer is unlikely to re-register it in his name, and until the car finds a new owner, transport taxes and fines will be the concern of the previous owner.

Thus, it is the dealer who must take responsibility for the sale and control over the re-registration of the car by the new owner.

If these conditions were not met, and you, for example, received a fine for your sold car, you have the right to visit the traffic police and stop registering the vehicle , and then appeal the fine by providing a sales contract. In addition, it is worth including in the contract the service of informing you, as the previous owner, that the car was sold by a car dealership.

Source: https://www.kolesa.ru/article/chto-takoe-trejd-in-v-chem-ego-preimushhestva-i-nedostatki-i-kakie-byvayut-podvodnye-kamni

What is Trade-in when buying a car?

Every car owner sooner or later has a desire to sell his car and switch to a new model. Those who have gone through the process of selling a vehicle on their own know that this process is not pleasant and takes a lot of time.

The car must be prepared for sale, then look for a buyer by posting advertisements and meet with them for inspection. When there is no time or desire for all these manipulations, many car owners remember the “Trade-in” program they once heard.

What is Trade-in at a car dealership?

The meaning of the Trade-in program is simple: the owner of a used car trades in his car to the dealership in exchange for a new one, naturally paying extra if necessary for the difference in price.

The amount of the surcharge is determined by the car dealer based on the inspection of your previous car at the service center located at the car dealership.

The Trade-in program is rapidly gaining popularity in Russia and is widespread in Europe and the USA.

Program conditions

In order for a car dealership to accept a vehicle under the Trade-in program, the owner of the car must have the following package of documents with him:

PTS.
Civil passport of the car owner.
Vehicle registration certificate.
Technical inspection certificate (if available).
Service book (if available).
Two sets of keys (for some models three).

In the case where the car is not delivered to the dealership by the owner, you will additionally need a power of attorney.

Video - overview of the Trade-in service:

Not every car dealership accepts this program. The car must meet certain requirements:

be no older than 10 years;
be in good condition;
have a good appearance;
the car model must be in demand.

Since the main task of a car dealership is not to buy vehicles from the public, but to subsequently sell them and make a profit from it, the brand of car accepted under the program must be liquid, that is, in demand among potential buyers.

How is a transaction processed under the Trade-in program?

Using the program is easy. After the buyer has decided on the choice of a new model, he must come to the dealership in his car. Before doing this, it is better to agree in advance on the date and time of the visit by phone.

The car is driven to a diagnostic stand at the service center of the car dealership and all components are diagnosed, the results of which form the estimated cost of the vehicle. The entire procedure usually takes no more than two hours.

Video - how the procedure for accepting a car under the Trade-in program occurs:

Since October 2013, the rules for vehicle registration have changed in Russia. According to the new rules, the seller does not need to deregister a car when selling it in Russia. The buyer must contact the traffic inspectorate within ten days from the date of purchase to register the vehicle.

In the case of an exchange under the Trade-in program, this procedure works differently. The car dealership does not acquire ownership of the vehicle, but accepts it under an agreement for further resale.

Accordingly, the new owner who bought it at the car dealership will register the car. Based on this, the former owner of the vehicle, who handed over the car to the dealership using the Trade-in system, legally remains the owner until the purchase and sale transaction is concluded.

What to pay attention to

Be sure to carefully read the contract with the car dealership; it should contain a clause indicating the time required for the dealer to sell your vehicle.

It is advisable to require the inclusion in the contract of a clause of the car dealership’s responsibility for the condition of the car during its sale.

Specify the time frame within which the car dealership must notify you (as the former owner) about the completion of the purchase and sale transaction.

It would be a good idea to ask for copies of the purchase and sale agreement for your car after completing the transaction.

Criteria for calculating the cost of a trade-in car

The main criteria for evaluating a car will be appearance and the absence of technical problems. Scratches and dents on the paintwork, even the smallest ones, will negatively affect the appraised value.

In addition to appearance and technical characteristics, the current demand for such models on the market plays an important role in the assessment. The presence of additional options will positively affect the cost of the car.

On average, when renting out a car under the Trade-in program, the owner loses about 10-15% of its market value. This is explained by the fact that the car dealership takes on the hassle of its subsequent pre-sale preparation and implementation.

An advantage in assessing the cost will be the car dealership’s interest in selling a new car model. In this case, the estimated value of the car being sold can reach almost the market price.

Advantages and disadvantages of the Trade-in program

The main and main advantage of Trade-in is, of course, saving time. The car dealership takes on all the hassle of pre-sale preparation of the car and finding a buyer.

A big plus of the program is the legal purity of the purchase and sale transaction. The dealership will conduct all necessary checks to determine whether the vehicle being rented out is criminal.

A positive factor that for many car owners outweighs all the disadvantages of the system is time savings.

Ideally, you can come to the dealership in your old car and literally a couple of hours later go about your business in a new car.

Among the advantages of the program is the opportunity to purchase a new car on credit, using the old car you are trading in as a down payment.

Among the disadvantages of a trade-in (one of the most unpleasant for the owner) is the cost at which the car dealership evaluates the vehicle being traded in. In special cases, the loss from the market price can reach up to half the cost of the car.

Video - what you should pay attention to before handing over your car to Trade-in:

The car dealership must check the car for the technical serviceability of all components, make sure it is legal, prepare it for subsequent sale, and still receive its profit from the transaction.

An additional disadvantage of the program is the limited choice when purchasing a new car. The system is not suitable for a buyer who chooses a car according to certain requirements.

Another disadvantage of the Trade-in program is that it is not quite popular enough in Russia compared to other developed countries. Many car owners are not fully aware of it. And among those who have information, there are many people who are simply afraid to get involved with the program.

Conclusion

To summarize, it should be noted that there is no universal advice to use the Trade-in program or not. Each car owner must decide this issue for himself. As you can see, the program still has more advantages than disadvantages. Millions of people around the world exchange their vehicles through the Trade-in program and are quite satisfied.

Video - presentation of the Toyota Trade-in program:

May be of interest:

Source: http://voditeliauto.ru/poleznaya-informaciya/pokupka-avtomobilya/chto-takoe-trade-in.html

Buying a car via trade-in in 2018: what it is, how to buy it, pros and cons of the program

What tricks do car dealers and manufacturers go to in order to sell their goods! These include discounts, bonuses, gifts, and even the opportunity to exchange an old car for a new one or a used one, but better. In this article we will tell you what trade-in is, because the service is beneficial to everyone without exception. Let’s also compare it with the federal recycling program, which operates on a similar principle.

Operating principle and legal framework

Let's start with a definition. Translated from English, trade-in means a method of promoting a product in which customers are offered a fixed discount on the price of a new product in exchange for a used one.

In our case, the principle of trade in is this: you drive into the dealership, leave your old car, and drive out with a new one, paying the difference. That is, the seller receives part of the cost in the form of a car that the buyer gives to him.

Very tempting.

It is worth noting that this type of trading has been known for a long time. Even in the USSR, some goods could be exchanged for new ones with an additional payment.

Car exchange using the trade-in system is two operations in one transaction - selling an old car and buying a new car.

This is beneficial and convenient if you don’t want to remain a pedestrian for some time, because:

The old car will have to be deregistered and the new one will have to be registered.
A new car is often bought not where the old one is sold.
To sell, sometimes you have to spend a lot of time and effort.

Now let’s look at how a trade-in on a car works. The owner comes to the salon, and after diagnostics and assessment, if the necessary amount is available, he can drive away in a new car within a few hours. It saves time and nerves and changes the vehicle without any problems. At the same time, the transaction takes place safely, and the center’s specialists handle the paperwork.

Order of the Ministry of Internal Affairs of the Russian Federation No. 605 of 07.08. In 2013, adjustments were made to the procedure for providing the service. Now it will not be possible to deregister a car unless it is scrapped. Therefore they do this:

Selling a car to a salon.
Conclude commission agreements for the sale and purchase of a new car.

Formally, the car will remain with the previous owner until a buyer appears. TN will have to pay, and after the sale, control the re-registration.

Conditions and required documents

Participation of a car in the trade-in program is possible if it:

Solely owned.
Not in bail, under arrest or stolen.
Technically correct.

The dealership will first of all conduct a legal assessment of the transaction. They will drive the car through the databases, check the documents, and only then continue the procedure. Additionally, most dealers set their own limits. For example, they do not accept cars that have been in serious accidents, as well as domestic cars older than 5 and imported cars older than 7 years.

The following documents will be needed for trade in:

SOP, PTS, insurance policy;
two sets of keys;
maintenance ticket, if available;
service book (if available);
owner's civil passport or power of attorney.

Legal entities will additionally need:

tax registration certificate;
an extract from the Unified State Register of Legal Entities or a certified copy not older than 3 months;
seal and details of the organization;
power of attorney for a representative.

It is recommended to inquire about the terms of the transaction in advance - dealers offer various trade-in conditions.

Trade-in used car

It is allowed to exchange a car via trade-in for a used vehicle. There are plenty of salons offering this service. The transaction mechanism is no different. Cars offered for sale undergo diagnostics and full service.

You just need to take into account that tracing history in this case is just as difficult as in the market. True, the legal purity of the transaction is guaranteed. Don't forget that you can bargain here.

How is a car assessed?

The procedure for handing over a car for trade-in involves assessing the residual value. It is clear that this is the most important stage for the owner. And not only for him. A dealer will never buy a car at the average market price. For him, profitability begins at a difference of 20-30%. In this case, the liquidity and prestige of the car must be taken into account.

The age of the vehicle is very important. For the first year of operation of the car, 20% of the original cost is discounted, for each subsequent year - 10%. The dealer will definitely take into account if the transmission is manual, the paintwork is not original in places, the interior is a little worn, and the tires are slightly worn. There will be a lot of questions, and the car owner will have to fight for the price. The assessment at the car dealership is free.<\p>

Online assessment

Many showrooms offer the use of special calculators to calculate the approximate cost of a vehicle. Evaluating a car for trade-in online on the dealer’s website cannot be objective, but it will provide an opportunity to understand the “attitude” towards your car.

The algorithm of the program is designed taking into account, first of all, the interests of the dealer. The more input data the car owner provides, the greater the chance of receiving the exact price that will be offered at the dealership.

But it is best to use the services of an independent professional appraiser.

We buy cars via Trade-in

Now let’s talk about how to buy a car through trade-in. If you decide to change your car in this way, you will first have to decide on the choice of model and dealership. This is not as simple as it might seem at first glance. The fact is that in a decent and trustworthy salon there may not be suitable offers, and vice versa.

When the choice is made, you need to calculate the approximate cost of your car. We have already explained how to do this. Then you should put the car in order. As a rule, deficiencies that are well known to the owner are eliminated.

All that remains is to call or contact the dealer through his website and clarify the procedure, discounts, the possibility of obtaining loans, and so on. The further trade-in algorithm when buying a car looks like this:

Choosing a new car.
Checking documents by the dealer.
Checking the condition of the vehicle.
Estimation of the cost of the car.
Drawing up contracts, resolving payment issues.

Where is exchange possible?

Today there is a huge selection of offers. The trade-in service when buying a car is provided by many official dealer showrooms and small trading platforms. The choice remains with the car owner. It’s easier, of course, to give the car to the center where it was bought - firstly, the history is already known, and secondly, there will be fewer questions regarding the assessment.

Small traders may be more aggressive in defending their own point of view on the valuation, and their legal support for the transaction is often lame. It is recommended to trade in the car at the dealership of the manufacturer's official dealer. This is the safest and best option.

Manufacturer programs

The production of some popular brands of modern cars today is localized in Russia. Automobile factories are given the right to independently determine the amount of discounts and offer unique preferential conditions for purchasing products.

Almost every manufacturer has its own trade-in program. And in 2018, automakers are unlikely to change anything in relation to the Russian consumer. That is, their programs will continue to work without changes.

Is the program profitable?

Now let’s talk about whether it’s profitable to trade in a car. There is no need to say again that this is convenient. What about the benefits? If you remember that time is money, then it is definitely profitable. It is generally impossible to estimate the cost of saved nerves.

Money is more difficult. The car in the showroom will be valued below the market value. The trade-in benefit can be real if every little detail is taken into account correctly, but the dealer is not interested in most of the options in your car.

It is important to look at the issue comprehensively. Firstly, what is the difference between the proposed and market value of the car being sold, and secondly, what will be the discount on the purchased car.

On average, the benefit can reach up to 5%.

Choosing between Trade-in and recycling

As you know, the recycling program has been continued for 2018, so the Russian car owner has a choice. Let’s express a few thoughts about whether it’s worth trading in a car and whether it’s more profitable than scrapping it. If the car is too old, then it is definitely more profitable to scrap the junk. This option is used if the residual value of the vehicle is lower than the discount determined under the recycling program.

When choosing a trade-in, the discount on domestically produced cars is always slightly lower, but here the list of models included in the program is wider.

Possible nuances

The system is good for everyone, but there are trade-in pitfalls, which we will now talk about. First of all, we point out the main disadvantages of such trading:

limited choice – both models and configurations;
low cost after assessment, which is often associated with the dishonesty of salon workers;
difficulty/impossibility of returning a car with high mileage, after an accident or with serious breakdowns;
unfavorable lending conditions.

Users note the following nuances of handing over a car to trade in:

the need for technical inspection and independent examination to confirm the technical condition described in the report issued by the salon;
There were cases of twisting odometers and concealing information about the participation of cars in road accidents;
There are hidden fees. For example, for diagnostics in case of refusal of purchase.

Now let’s talk about whether it’s possible to trade in a car using a general power of attorney. This is allowed if the car is registered and the seller is not its owner. Previously, it was possible to transfer a power of attorney to the salon so that it would deal with the deregistration procedure and so on. It was simply processed for three days, but today there is no point in that.

You can issue a power of attorney to terminate registration upon subsequent sale, obliging the salon to control the registration by the new owner. The trade-in agreement must be read very carefully.

It should indicate the time frame within which the salon is obliged to sell the car, indicate who is responsible for the vehicle, and so on.

The dealer must also notify you of the sale, give you one copy of the contract and the act of transferring the car to the new owner.

It makes sense to use the service when a car has already been selected, preferably in the same dealership. If you simply trade in your car and get money, it is unlikely that you will be able to buy something on the market for this amount without additional payment. It is possible that prices may rise. This is an unprofitable option; in this case, selling the car yourself would be more profitable.

Let's sum it up

Having carefully studied all the pros and cons of exchanging a car for trade-in, you can come to the conclusion that participation in the program gives you:

Convenience and time saving.
Saving money. You don’t have to fix your old car yourself – the dealer will do everything.
Guarantee of personal safety and technical serviceability of the purchased vehicle.
Possibility of purchasing on credit.
Exchange of any vehicle (meeting dealer requirements).
Nice little things as a gift. For example, free maintenance, maintenance or discounts on spare parts/accessories.

The offer is interesting, but often unprofitable, because you have to pay for convenience. Therefore, decide for yourself whether to use the trade-in program or not.