Why is my trade in worth so little?
Loading Vehicle Picker...
Why is my trade in worth so little?
Not everyone asks this question, but many do. Especially just when they are thinking of buying a new car and they have just had their first offer and been disappointed with it.
If you feel the price for the trade-in is too low (and you’re not getting any higher offers), please be aware of the following:
- For “common” cars, the average turnaround in a car yard is 4 months. Low volume cars vary, but can easily take 9 months to sell. During this time, the car:
- must be initially repaired for scratches and dents. A “bottom-half” is the industry term for a dent repair and respray of the bottom half of the vehicle.
- needs to be financed by the dealer.
- must be advertised.
- must be maintained so it starts and runs and is clean.
- takes up one space in the yard, from which the dealer needs to generate a minimum of $x each year – regardless of the value of the car. This especially hurts cars under $10,000.
- The Redbook (and Glasses) valuation guide
- is based on cars in perfect condition. New tyres, no dents, no scratches and mechanically sound with a full service history.
- contains old data that is only periodically updated.
- sells “valuation certificates”. People love buying these to show others what a high valuation they have on their car. Higher valuations = higher certificate sales?
- doesn’t buy cars. It would be fantastic if the Redbook bought cars at the valuations they give. Unfortunately they don’t.
- Don’t compare the trade-in offer to advertised prices. Used cars advertised online (or elsewhere) rarely sell for the advertised price. There is always room to negotiate – sometimes $1,000s of dollars.
- Some (almost always private) sellers advertise their cars at super-high prices on the off-chance that they will get lucky. Some advertise their cars for years this way. Online advertising is often very cheap and “advertising until sold” is a fixed price regardless of the period of time.
Here is seven way to handle a disappointing valuation:
- Accept the offer for the trade-in.
- Add the following special condition to the Sales Agreement: ” I reserve the right to remove my trade-in from the sale prior to delivery of the new vehicle.”
- Clean the car inside and out, but do not have it detailed.
- Take photos from the front, from both sides, the rear, and through the open driver’s door (showing steering wheel and instrument panel).
- Set the price above the dealer offer and a little below what the dealers are selling similar cars for.
- Put a well written advertisements in your local newspaper. Make sure you include all of the details we asked you for (i.e. Make, model, registration expiry etc.).
- Print the advertisement on A4 paper and put it on your car – both side windows. People in your area, your work colleagues and friends will then be aware it is for sale. Many prefer to buy a “known” car and dislike having to scour the Internet every night looking for prospects.
This will maximise your chance of selling the car privately, and is basically a way of doing due diligence on your trade-in. You will find that most people are prepared to wait until you take delivery of your new car before they can pick up your old one.
Testimonials
I haven't met you in person but felt like I knew you for ages. I really appreciate for the great help and assistance right through the process. I got my car yesterday. I Thank you once again for the best customer service. I will call you later. I just can't believe that computer technology and modern technology has really made the process quicker than I ever thought without compromising on service.
W.F., Melbourne
Your prompt and professional service was very appreciated, and we will recommend your service on to our friends and family.
C.K., Melbourne
This is the very first time that I have ever bought anything via the internet, or ever done any business over this means, and so I want to specially thank you for honouring my trust. Yet you also did much more than that, you got me a far bigger saving, (over twice that which I imagined possible), with a good and reputable dealer, delivered at our nominated timing, and you displayed great patience with myself through the process. This is my wife's very first new car and she is absolutely delighted with it. So much so, that she has not even allowed me to have a drive of it yet. And so I guess we have all been winners, haven't we? And what could be better than that?
K.S., Brisbane
Living overseas but about to return to Australia, we found that buying a new car was going to be a daunting process. Carbroker.com.au took all the hassle out of it and came up with a very competitive price as well. All we had to do was choose the model, pay a deposit and then pick up the car as soon as we arrived back in Australia. This is a great service for expats who are returning to Australia
P.H., Yamba
WOW FACTOR!! For the sevice provided, the lovely people that are always a pleasure to deal with and the easy delivery of the new car that I requested - I am an extremely happy customer. I was lucky to stumble across the Carbroker.com.au website and have told friends and family that there is no better way to buy. Chris - thanks for doing a great deal for me in the purchase of the Toyota - saved me thousands of $$$ and found me a beautiful new car. Fantastic website & a lovely person to do business with. Cheers!!
C.S., Rye
Thankyou very much Carbroker.com.au for helping us to buy our new car. We are very happy with the process of buying a car through Carbroker.com.au. We usually have big arguments over haggling so it was a great relief to get CarBroker to do all the hard work to relieve the stress on us and our marriage. And we still got a great price!
N&M, Sydney
I picked up my new Nissan Patrol on Friday afternoon. I would like to thank you for all the work you did on my behalf and the fantastic price you secured my new car for. It was so good not to have to do the rounds of the car yards and try to beat car sales people at what they do best. Your website was also great with tips on how to sell my other car as well as all the other information available on it. The dealership was very professional as well and the car was ready as promised and in a very nice condition.
B.W., Queensland
We saved around $1500 which was absolutely fantastic given that it resulted from only one web enquiry and five minutes of our time! Thankyou so much. And, yes, we will tell others of your service.
J.T., Canberra
This is by far the best money I have EVER spent. An outlay of just a few dollars saved me thousands - even on a limited edition vehicle! In fact, I saved so much I added a few optional accessories and still bought the vehicle at less than the retail price for the car alone (not to mention dealer delivery fees and charges). The savings didn't end there. I saved another bundle with the insurance you recommended (approx 33% less than another quote I already had). The savings here will continue for years to come! Not only will I be recommending your services to everyone I know, I will be using your services again myself. This is the ultimate car purchasing experience! Thank you again for your excellent service and attention to detail.
M.K., Brisbane
I am impressed by your professional approach with your customers. Therefore, I have already recommended your service to my collegues, friends. I would again use your service in the future when I buy the next car for my wife. I will continue support you and your dealers in the future as you all are doing wonderful jobs!
L.I.I., Brisbane