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ishanb1

Why manufacturers offer heavy cash discounts on car exchange?

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I always wanted to know why car manufacturers offer heavy discounts on car exchange. How is it profitable for them if someone exchange his/her own car? If exchanged car standing outside car showroom considered as unsold inventory?

thanks.

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Well I never give much heed into so called exchange bonus.

They first devalue your old car and then try to compensate it somewhat with this exchange bonus.

I have experienced this when I wanted to exchange my old 2003 Santro and the dealer quoted a price of just 90k for it citing various reasons and then if I add exchange bonus of 25k that was being offered, it translated into 1.15 lac. However, I was easily able to sell my Santro in open market for 1.5 lacs.

So in a nut shell it's another way of profit making by these dealers.

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It is the same thing. They offer good exchange and will offer a far reduced price for the old one. But if you find that it is more or less same with that you sell to some one else, and the new car you are planning for is the one that you need, then I advice that you go for an exchange. There will be no hassle and you will be free of all tensions related to registration, account transfer, affidavit, etc

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Always remember two simple things.

No dealer is a philanthrophist (unless he happens to be your relative or an extremely close friend).

And, if you as the existing owner is not able to (or do not want to) find a buyer for your car, why the

hell will an outsider do that job for you, at a beneficial price to you ?

Never go in for an exchange. First sell your old car and then buy a new car. Today, there are no

waiting periods for most of the cars. So, why in such a tearing hurry to buy a new car as if there

is no tomorrow ? Sell your oldie today and buy a new car tomorrow. Never go by what those sales

guys promise. All that is only to cheat you.

Lazy people who can't sell their cars are easy prey for such gimmicks.

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