What Happens to Your Car When It Is Traded In?

Some motorists who have traded their car in will have driven away from the lot and wondered what is next for their previous vehicle (perhaps the more sentimental drivers). It is not simply a matter of sticking a “for sale” sign on the windshield, and instead, it undertakes a small journey to find a new owner. Here is what might happen when you trade your car in at a dealership:

Reconditioning and Sold Onsite

Most dealerships will look to sell the car on their lot if your car is in relatively good condition, has less than 80,000 miles and it is not too. They will spend some time reconditioning the vehicle by making any necessary repairs, such as the fixing the brakes or replacing the tires. This is to ensure that it complies with the law and performs to a high standard.

Next, it will undergo a thorough cleaning and detailing to make sure that it looks its best and as new as possible. It is then listed for sale. Typically, this is normally around 20% more than the amount you traded it in for.

Wholesale

If your vehicle is older than 6 years and has more than 80,000 miles, there is a good chance that the dealership will take the vehicle as part of the trade-in and then sell it on to another dealership. They are aware that they will not get much profit from these vehicles, so they will not pay as much for the trade-in.

Auction

If your vehicle is older still or traveled too far to sell to another dealership, then there is still one option before it reaches the scrap yard. This is to auction the car at a dealer-only wholesale auction, where often it will end up at a “buy here, pay here” dealership where usually the price is in weekly installments. An auction will result in small profit for the dealership, so they are likely to offer a very small amount.

These are the three possibilities that your vehicle faces when you trade it in. In order to get a fair price, you should always take the automobile to a reputable dealership, like Robins & Day. This ensures that you will get a good deal and drive away happy.

By understanding what happens to a vehicle once it has been traded in and that dealerships are very eager to buy trade-ins, you can also use this knowledge to your advantage to get a great deal.