Finding a buyer for your used car in the UAE can be a pretty difficult and exhausting task. After all, it is never easy and comes with a number of challenges.
Starting from finding a seriously interested buyer, to determining the resale value that the buyer might agree to, to handling all the paperwork. Each additional step leads to even more complications than the previous one.
Perhaps that’s why many car sellers prefer to sell their car to a dealership rather than go through this hectic process themselves.
Nevertheless, selling their car to a dealer can prove to be a big mistake for many car sellers. This article takes an in-depth look at why trade-ins are not the right option for every used car seller.
Reasons why trade-ins are not the ideal option
Experience and the presence of several detrimental factors in a dealer transaction suggest that, as convenient and easy as it may seem, trade-ins can be nothing more than a rip-off in which the used car seller suffers a large, albeit avoidable, financial loss.
Below are some reasons why a trade-in may not be the right decision in your case.
1 # Experience is important
First of all, experience matters when it comes to a trade-in or selling your car to a dealer. Remember, car dealers, are experienced professionals who have extensive knowledge in their field as well as the skills of an excellent salesperson.
They negotiate every day to buy cars at a lower price and then sell them at great profit margins.
In contrast, you lack not only car sales experience but also several other important qualities that could put you in an unadvantageous position.
Considering the above situation, the easy and convenient-looking car sales transaction with a car dealership could turn out to be a significant financial loss for you.
2 # Merging transactions in a trade-in is the biggest mistake.
Often, car dealers try to trick you into signing a trade-in deal. This means that you can sell your old car in exchange for a new one at the same dealership and in a single transaction.
This is another trick car dealers use to try to give you an unfair financial advantage. In a single transaction, a car dealer will either offer a better price for the used car in exchange for a smaller discount or a higher differential to be paid against the new car.
This can also happen in reverse, where the dealer offers a lower purchase price for the used car but a higher discount for the new car.
In both cases, the car dealer will give the impression that you are being financially favored, which is not the case.
While we do not discourage doing both deals with the same dealer, we do recommend doing both deals separately. Ask for a better resale value and a higher discount than two separate transactions without a merger. It is then your decision whether to do both transactions with the same dealer.
3 # Limited choices when buying and selling cars.
Another disadvantage of visiting dealerships for a trade-in is the limited choices for you as a seller and buyer. This means that some dealers may refuse to buy the car you are selling, but may sell the car you want to buy.
Likewise, the dealer willing to buy your used car may not sell the car you are looking for.
4 # Paying an appraisal fee.
Some car dealers try to get you to sell your car only to their dealership and charge a separate fee for assessing resale value. This fee can be adjusted if a deal is made, but in any case, it is payable to the car dealer for their service.
To avoid falling into the traps described above, it is always advisable to sell your car to a specialized car buying company in UAE. Car buying companies in UAE offer free resale value assessment, on-site inspections, instant quotes and immediate cash payments, and completion of all legal formalities. Sell your car to cashyourcaruae.com and get instant cash.