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Step 6: Old Car - Trade-in vs. Private sale
There are two basic choices when deciding what to do with your old vehicle: sell it privately or trade it in.
Selling it privately
You may receive a higher price but like most things, it will require additional work. First you must establish a value for your vehicle. Watch automotive internet advertising section for similar vehicles. It will help you set a fair price based on your local market.
Be honest about the price and condition of your vehicle. You don't want to scare away potential buyers with an unrealistic price.
Advertise your vehicle online at www.autoindia.com. Be sure to list the make, model and options, along with other pluses. Low mileage and certain features will raise the price of your vehicle.
Prepare your vehicle for resale by having the car cleaned and detailed by a professional automotive shop. Having your car cleaned gives you an edge over other vehicles in the market. An attractive car can justify a higher selling price.
Trading in your vehicle
This may be a way to go; the only drawback is that you may not get the best price. Trade-ins are easy because the dealers do all the paperwork and title transfers. The amount of tax may be based on the total sales price. This price may be reduced by the amount of the trade-in; thus less taxes would be assessed. The value of your trade can also provide you with a down payment for the new vehicle, provided you have equity in the vehicle. Remember, when you trade in you will generally receive less for your car than you would if you sold it outright. The dealer who accepts your trade must build in a margin for profit if he is going to resell your old vehicle. You will typically receive what is known as the wholesale value for the vehicle. Trade-ins are easy but you will pay for that convenience.
Generally speaking dealers will pay between 10-20 per cent less for your car than if you were to sell it privately. If the car's condition is a bit rough, it may be best to trade it in. But if it's a tidy low-mileage car, it would be better to sell privately and put the cash towards your new car.
Here’s a list of things to do in preparation for a trade-in or a Private sale:
Wash and wax the exterior
Thoroughly clean the interior fabrics, vacuum the carpet, and remove any debris such as food wrappers, coins, aluminum cans, etc.
Change the oil and oil filter. The dealer will check the dipstick to make sure the car’s engine has been properly cared for.
If any repair work needs to be done, get an estimate on the cost. The value of your car is lessened with every flaw, so know exactly how much repairs will cost. This will help you arrive at a fair value for your trade.
Step 7: Where to buy- Choosing a Dealer?
The most obvious answer to the question of where to buy your new car is at a main dealer.
The simplest way to shop for a new car is to call or use the Internet.
Call dealership in your area that offers your choice of car, talk to the Fleet Manager or sales person, and ask for a quote over the phone.
The information superhighway has become a viable option for finding your new car. AutoIndia.com web site is the most visited of any in the India, and the prime source for locating used, new and nearly new cars. AutoIndia.com ‘Buy New Car’ option can get you multiple competitive quotes from dealers anywhere in India.
However, some dealers may not take the phone-in order seriously. Or, they may claim that they require you to come down to the dealership. By requiring your presence, the dealer hopes to gain a greater leverage in terms of carrying through their soft sell act.
You could also try the fax route. For starters, you may need to call a dealership to discover its fax number but once you begin the communication via fax let them know that you handle all of your business this way.
Meeting up with a Fleet Manager rather than a sales person offers several distinct advantages. Please make sure that you are carrying all the quotes you have received from dealers.
When negotiating, it’s always best to reach a meaningful agreement with the person with whom you’re negotiating. In traditional sales, the salesperson will almost always need to get the deal "okayed" by his or her boss — say the sales-manager. So even if you’re a superb negotiator who has just agreed to buy a car at the dealer’s cost, the deal has to get a green signal from the third-party sales manager. And that can be frustrating. On the other hand, A Fleet Manager can use his discretion and is completely capable of closing the deal without conferring with the sales manager.
The Fleet Manager is used to providing customers with discounts. He will be willing to negotiate readily, and will not expect the customer to pay the MRP.
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