What is a "trade-in"? Benefits and national features

2024 Author: Erin Ralphs | [email protected]. Last modified: 2024-02-19 11:42

Almost every car owner faced the problem of selling an old car and buying a new one. The first stage of this process is fraught with difficulties: the secondary market is oversaturated, and it is extremely difficult to sell a car. The solution to the problem is also called trade-in: a scheme for selling new and used cars with a offset of part of the cost. So what is a "trade-in" and what is the exchange procedure?

This scheme originated in the early days of motorization in the United States of America, when manufacturing companies began to accept old cars as part of the cost of a new one. Then specialized firms appeared - dealers that were engaged in the sale of cars, including under the trade-in scheme. In developed countries, this movement became widespread, especially after the Second World War.

Trade-in: how does it work?

In order to understand what a "trade-in" is, you need to understand the procedure. So,the car owner decided to replace the old car. In his car, he goes to a car dealership he likes. Employees accept the car, send it for diagnostics and organize an examination. The purpose of these activities is the assessment of the vehicle.

The Trade-in car dealership sets its own price and the customer is invited to make a choice of a new car. Of course, its cost will be higher than that of the old one, and the buyer will reimburse the difference. It takes only a few hours to complete a transaction according to this scheme, and ideally, on the same day, the happy owner of a brand new car goes home on it. This is how it works in the West.

Dignity of credit scheme

The main advantage for a car owner who decides to change the car is the convenience and speed of solving the problem. All the worries about deregistration, pre-sale preparation are shifted to the shoulders of the company. Trade-in stores try their best to attract customers and organize their work in such a way that visitors do not experience the slightest inconvenience.

If the car owner does not have enough funds to pay the difference, then he will most likely be offered a loan from a partner bank. At the same time, a representative of a financial institution, as a rule, is located here. The loan agent will advise and assist in the preparation of a package of documents, as well as the execution of an application, which will be immediately accepted for consideration. In general, the picture, at first glance, is blissful.

Features of national trade-in

Having receivedthe answer to one question: what is a "trade-in", you will immediately ask another: what's the catch? The main problem, according to experts, is a rather low assessment of the vehicle. An attempt to apply to another company is unlikely to be more successful. Car dealerships will not accept cars with problematic documents, which have been in an accident with serious consequences or have high mileage.

Taking into account all of the above, we can draw the following conclusion. In our country, many already know what a “trade-in” is, but it is still far from a well-functioning and well-established system. There are still a lot of economic difficulties to overcome and the inertia of thinking of both stakeholders in this process.