Car Trade-In: Should You Do It?
The Philippine automotive industry is more robust than ever. There are so many great choices, not to mention every car dealer is gunning for your business. Suffice to say, there has never been a more exciting time to be a car owner.
One of the ways that car dealers entice their customers these days is by letting you trade in your car when you buy a new model. In theory, a trade in allows you to buy a new car at a lower price tag, allowing you to save on your purchase. This sounds good on paper, but is trading in your car all that it’s made out to be?
Advantages of trade-in
Vehicle trade-ins are all about convenience—they eliminate the hassles involved in selling your car privately, which can be time-consuming, not to mention drag on for weeks and even months. Think of all the paperwork that you can avoid, from the deed of sale, to the change in ownership, to the OR/CR, and beyond.
Likewise, dealers that accept trade-ins will accept your car as-is, which means you don’t have to shell out any money for repairs. And if your car is in great condition, you could be driving away in a new car in no time at all, at a significantly lower price and minus the investment you need to make to ensure the salability of your car.
Trade-ins also help you avoid dealing directly with buyers, who may end up pestering you long after you’ve sold your car with performance or maintenance issues that may arise. By trading in your car at a dealership, you never have to worry about a phone call from a bothersome buyer.
Disadvantages of a trade-in
The biggest downside to a trade-in is the price gap between your vehicle and the one you intend to buy. Expect the dealer to offer you a much lower amount than what you think you could get with a private sale.
Also, when it comes to trade-ins, there are no guarantees. Quite simply, depending on your car’s make, model and condition, the dealership may not be able to find a car for a trade. Dealers aren’t inclined to trade one of their high-demand cars, so you may have to settle for bottom-rung, low-selling units.
The decision to trade-in your vehicle depends on how much you value convenience over savings. More often than not, selling your car on your own will net you better value for your property. If you don’t have time for prolonged sale, or if you don’t mind letting go of your car at a significantly lower value than what you would get for it in the open market, then a trade-in might be an ideal option.