Trade-in is counted among one of the most feasible options to upgrade your old vehicle. The process is simple and requires less time, documentation and legalities. When you trade in a car, the auto dealer buys your old vehicle and offers you to purchase a used or new vehicle in return. However, sellers will not receive a cash amount for their old vehicles. Instead, the dealer deducts the money value of the old car from the cost of the new car.
Prior to opting for this option, let’s discuss all the tips and tricks to trade in a car adequately.
How to Trade In a Car
The trading in is available for both: completely paid-off and debt cars. If you are trading in a completely paid-off car, you only have to pay the additional price for a new vehicle. Whereas, if you are trading in a car with a loan on it, you first have to pay the remaining amount of the loan.
Here are the complete details regarding the process and steps of trading in your car.
Estimate your Car’s Value
Calculating your used car value will identify the accurate price of your vehicle. This will help in negotiating with dealers while trading in a used car. The used car value depends upon a number of factors such as manufacturing year, model, trim, mileage and car condition.
Estimating a car’s value by using all of these factors can be a difficult process. You can avail of the free car valuation feature of dubizzle. It provides precise value just by inquiring about general information related to your car.
Shop Around for Different Quotes
The majority of auto dealers in the UAE provide trade-in facilities. Getting estimates from different dealers and contrasting them will help you avail the best price for your vehicle. Prioritize these deals on the basis of additional benefits included in the deal such as: paying off car debt or fixed trade-in prices. You can also leverage Ramadan car deals of different dealers, offering trade-in at a considerable price.
Negotiate the Trade-In Price
It is suggested not to accept the first offer made by the dealer. Rather use car buying negotiating tips for cracking a better deal. Start negotiating the price of your old car and request a dealer to purchase it at a higher price. Later, negotiate the markup amount or monthly instalments of the new vehicle.
When To Consider Trading In Your Car
Trading in provides multiple benefits to the car owner. These benefits can be enhanced if the trade-in is conducted during the ideal time and situation. Let’s see the perfect time and conditions when you should consider trading in your car.
- End of the Year: A number of dealers offer car trade-in deals on the older models by the year-end. In the UAE, the holy month of Ramadan is also an ideal time to trade in a car for a used car, as multiple offers are rolled off by brands and dealers.
- Lower Mileage: Vehicles with higher mileage have lower release value. Therefore, it is ideal to trade in your car when it has lower mileage.
- Positive Equity: Negative equity on the vehicle will dissolve the car value and you may end up paying more for the new vehicle.
- Too Many Repairs: Immediately trade in your vehicle if it requires a lot of mechanical work. You should also consider trading in if your car is showing symptoms of a seized engine.
Pros and Cons of Trading In Your Car
Pros
One of the major benefits of a trade-in facility is the short term process that is not time-consuming. It also exempts the need for any middle man, you can directly approach the auto dealers and crack the deal. Other than that, lesser paperwork and smooth transactions are also counted as the benefit of trading in.
Cons
It is believed that private buyers can provide a much higher price for used vehicles. This can be because of the fact that dealers prefer to purchase used cars at wholesale rates. However, it is subjective and also depends upon your negotiating skills.
This is all you need to know about how to trade in a car. Along with financial benefits, trade-in a car can secure you from additional formalities and time-consuming processes. Therefore, the process is considered one of the best ways to upgrade your vehicle. Whether you are looking for a brand new or used car in the UAE.
Stay tuned to UAE’s top auto blog for more information on buy and selling cars in the UAE.
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