The best and worst reasons to trade in your car

Updated Oct 19, 2020 | Same topic: Best Advice for Car Buyers
Determining the advantages and disadvantages of car trade-in to help you decide if it is a good or bad choice for you.

The battle between the pros and cons of everything is never-ending. This is because even though there bad things about a particular subject, there is still a good side to it. This applies even to your vehicle in its post glory days.

The car that you love today will lose all its prime qualities one day. The torquey performance you love about it will someday diminish. The stunning paint job and exterior will lose or lessen in appeal. What we’re trying to say is that you will eventually need to get rid of your car.

car trade in

Now, there are so many ways you could sell your car yourself

Now, there are so many ways you could sell your car yourself. You can post it online. You can ask a friend to help you sell it and give him a commission. You can also park it outside your house with a “For Sale” or “Buy Me” sign. But would you really want to do that?

That’s where the concept of “trading” your vehicle comes in. Trading-in your vehicle means putting its ownership in the hands of the dealership. This is exchanged for credits that will be subtracted from the amount you have to pay for the new vehicle that you want. But like most deals out there, trading in your car has its own benefits and disadvantages.

What are they? Will you still pursue trading your vehicle after you read this article? Find out in this article from Philkotse.com.

1. Why you should trade your car in

Let’s first find out the benefits of having to trade your car in. These concepts are basically invented for our convenience. Learning about its pros will help us weigh the c201ost of what we’ll get against what we’ll lose.

You deal with one person and one person only

When you personally sell your car, that means you will have to talk to prospective buyers. This means that you will have to entertain almost everyone that asks about the item you’re selling. Although it is normal for prospective buyers to ask questions, some buyers have other intentions. What’s more, talking to buyers can actually cost you a lot of time. Some may even reason with you to drop the price drastically.

By trading in your vehicle to a dealership, you won’t have to worry about these. You simply have to speak and negotiate with one person. On your end, all you have to do is read and sign the paperwork if everything is agreeable for you.

two man talking outside the car

When you personally sell your car, that means you will have to talk to prospective buyers

>>> Check out: Car Depreciation: Smart hack for beating it.

It’s super quick and hassle-free

Like we said earlier, finding a buyer for your car by yourself takes effort and a lot of time. By trading it in, you eliminate the long process and pass it to the dealership. While finding a buyer for your car could take weeks, trading in your car only takes a few days.

The dealership agent will take care of the process. All you have to do is provide the necessary documents asked. After that, you should read any documents handed to you before signing it.

car for sale

By trading it in, you eliminate the long process and pass it to the dealership

You’ll get a better price for a new vehicle

Trade-ins are usually performed to lessen the amount of a new car purchase. So if you and your attending agent had a great deal, you could credit the amount to the new car you like. Another bonus is if you have an amiable personality and great coercing skills. You can use this to befriend the dealer and get yourself a better deal.

>>> Also check: Selling a car in the Philippines: Trade it in or sell it privately?

calculator, toy car and some coins

Trade-ins are usually performed to lessen the amount of a new car purchase

You won't have to worry about repairs

If you want to trade your vehicle in because of a few dents and scratches, then this good news is for you. Most dealerships won’t hold you liable for the scratches and dents on your vehicle. They will be more than happy to fix up your pre-loved vehicle.

However, there are also limitations to these “damages”. The dents and scratches that are accepted by most dealerships are only minor cases. Vehicles that have been in collision accidents are most likely to get declined. If your car door has lost a hinge or the chassis was totaled, you may need to cross this off your list.

car dent

Most dealerships won’t hold you liable for the scratches and dents on your vehicle

All sales are final

If you sell your car personally, there will always be a chance that the owner will complain about something. These “complains” can eventually ruin the transaction for you. The supposed buyer can return the car if he wishes, and you will lose money.

If you traded your car into a dealership, the process would take a few days. This will most likely be enough time for them to know if there are issues with your car. After that, the negotiation can start, and you can speak with the dealer until you agree on a price.

2. Why you shouldn't trade your car in

Now that we know the positive side of trading in your car, it’s time to consider the other side. Here we have the bad side of trading your car in.

Your car's value is reduced

Since you are trading your car into a business, you can’t expect them to pay you retail price. The company still has to make money out of your car, so you can’t expect much. The price can drop lower if your vehicle has damaged.

>>> You need to know: 5 questions to ask yourself to decide if it is the right time to sell your car.

Toy car in coin stack

Since you are trading your car into a business, you can’t expect them to pay you retail price

Your car is not as valuable as others

Different cars have different monetary values. Your car’s brand and model greatly affects how much you will get for trading it in. If your vehicle is common or not very popular, you may not get a very fulfilling price.

Your choice is limited

If you traded your car in for a new one, your choice is limited. You can only choose from the vehicles that they have available. Sometimes you may only be limited to a particular set of vehicles.

For example, since you traded in a sedan, you can only get a sedan for the trade. However, this does not apply to all dealerships. If there is more than one dealership in your area, you can choose which best suits your needs.

Author

Hanna Sanchez

Hanna is one of the most competitive swimmers in the country during her day. It was not long before she discovered her passion for the automotive industry as well. Nowadays, she balances her passion through writing as well as coaching.