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How
to Get the Best Deal for Your Old Car
Prashant
Mahesh advises you to opt for an exchange scheme if you are buying from the
same co, or else sell it yourself
Bring the old and take a new one.” Manufacturers
and dealers of white goods and cars come up with exchange offers during the
festive season. With Navratri and Diwali around the corner, you are likely
to see many such offers in the coming days. For example, car companies are
offering . 20,000 to . 1 lakh as exchange bonus this festive season,
depending on the model you choose. Similarly, you could get . 2,000 to .
8,000 for your old refrigerator depending on its condition.
“In the case of consumer durables and white goods, there is no organised
resale market. Given the hassles involved in locating a buyer for your old
product and the time and energy it will consume, it makes sense to go with
an exchange offer,” says Devangshu Dutta, CEO of Third Eyesight, a
consulting firm on retail and consumer durables.
However, the rule doesn’t apply to cars. “If you upgrade your car to the
same brand, it makes sense to opt for an exchange offer. However, if you
are changing your brand, it may be better to sell the car in the
second-hand market and buy a new one,” says Roshun Povaiah of Cartoq, an
automobile website.
THE TROUBLE WITH RESALE
There is an active resale market for cars, but there is no such market
for white goods or consumer durables. Your neighbourhood scrap dealer won’t
offer you more than . 1,000-1,500 for a fridge or a washing machine in
perfect working condition. You could advertise on some websites, but
getting a buyer and the right price depend a lot on your luck. Even if you
are lucky to find a buyer, transportation cost would be another issue.
Also, going through the drill may consume a lot of energy. That is why many
people prefer to give it away to friends, relatives or domestic helps than
selling these dirt cheap.
“In most cases it may make sense to dispose of your old appliance to the
dealer itself,” says Devangshu Dutta. However, check with at least two to
three dealers to get a fair idea of the resale price before taking the
final decision.
CARS ARE DIFFERENT
If you are looking to sell your old car and buy a new one, zero down on
the model first. If you are upgrading to the same brand, the manufacturer
or dealer may offer you a loyalty bonus. This could be crucial in your
decision making. For example, if you plan to sell your old Maruti Alto and
upgrade to another Maruti car, say Maruti Swift, you may get a loyalty for
staying with the same manufacturer. The loyalty bonus could vary depending
on the model. It is typically around . 15,000 to . 25,000.
“Chances are when the loyalty bonus is added, the resale amount you are
getting could be higher than what you may get by selling your car in the
second-hand market. Also, since it’s the same dealer, the total amount is
adjusted easily and helps you make a down-payment for your new car,” says Roshun
Povaiah.
However, if you plan to shift to another brand, things won’t be the same.
For example, if you wish to sell your Maruti car and shift to a Toyota
make, you may not get any loyalty bonus. “In this case it would work better
if you independently sell your old car, than giving it to the dealer in an
exchange offer,” says Banwari Lal Sharma AVP (marketing), Carwale,
Automotive Exchange.
Since cars enjoy an active second-hand market, you do some research to
estimate what kind of price you can get for your old car. Manufacturers
have their used-car buying arms also. For example, Maruti True Value,
Mahindra First Choice and Hyundai Advantage are some manufacturer
secondhand dealers. Added to this, there are websites, local used-car
dealers and even garage mechanics who double up as car agents. They too can
help sell your car. Get an estimate from a couple of dealers on what they
are ready to pay for your car. Compare that with what the new car dealer is
ready to pay, and go with whoever is paying you more.
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