How to Get Maximum Benefits While Buying and Selling Cars
As a customer, we all want to get the best value for our hard-earned money. We are constantly in the search of a deal which provides us the maximum benefit with minimum cost. This is especially relevant in case of purchasing a high-value product such as a car. While we select the car on the basis of its looks, quality, features, etc., our concern for the price remains at the top. Similarly, while Selling a used car, we want to get the maximum value from the deal. Now to help you to derive maximum benefits while you purchase or sell your car, we have come up with the following list which has been divided into two sections – one section devoted to buying the car while other related to selling of a car.
Measures to help you maximize benefits while buying a car
1) Getting the Timing Right: There are some months in a year when car manufacturers offer a heavy discount on their offerings. Take, for example, a festive season which usually starts in September and goes on till the end of November. In these months, festivity fervor is high and people are willing to spend the money. To make the most of the sentiments, auto companies come up with discounts and exchange offers to lure buyers to their fold. So, if you want to maximize the benefit, buying a car in the festive season does make sense. You will get a handsome discount and the saving is sure to make your pocket extra happy.
2) End of Year Sale: The model year of the car has a significant impact on its value and this explains many people avoid buying a new car towards the end of the year and postpone their purchase to the next year. Such a behavior pressurizes the inventory levels of the dealers and to encourage customers, dealerships extend an attractive discount on car models in December month of every calendar year. If you are not overly bothered about the model year logic, buying in December could fetch you a great discount on almost all models across manufacturers.
3) Corporate Discount: If you work in one of the public sector undertakings (PSUs) or a multinational corporation (MNC), you should ask for the corporate discount from the dealer while purchasing a car. Check your eligibility with the dealer as they have a list of companies and organizations whose employees are eligible for the corporate discount. The corporate discount ranges between 1% and 5%, although it is unlikely to exceed Rs 25,000 in total. Still, the 25k amount is good enough to maximize your benefit from the deal. Also remember, you get the corporate discount from the manufacturer and it is additional to the benefits offered by the dealership to you.
4) Loyalty bonus: Sticking with your present car brand can help you to avail a loyalty bonus from your existing manufacturer. If you upgrade your car from the same brand, you become eligible for a loyalty bonus which could help you save up to Rs 20,000 on the purchase. However, please note that not all manufacturers offer loyalty bonus but then there is no harm of inquiring about it and availing if it is available.
5) Exchange Bonus: One can opt for the exchange bonus if you are trading-in your car although this might not help you to maximize your benefits. Trading-in is recommended only when you don’t have much time and want to close the deal as early as possible. You might get a quick deal from the dealer but certainly not the best price for your car. Even if you are in a hurry to sell your car, we suggest you visit the website of CarDekho Gaadi. The platform is the most respected name in the used car industry and assures you the best value of your used car. It also takes care of your urgency to sell the car as you can seal the deal at the Cardekho Gaadi store in just a single visit.
6) Finance and Insurance Discount: Banks and financial institutions provide a payout of up to 2% to dealerships/agents for selling their loans to customers. You can ask the dealership to give a discount on the finance front. Alternatively, get a price quote of the car and compare the EMI of different banks to make an informed decision. There are a number of EMI calculators available online which you can use for EMI comparison. Similarly, you can ask for the discount on the insurance as dealers make a hefty profit by selling car insurances. Insurance companies provide up to 40% margin to dealers and you should bargain to get some portion of that discount back.
Measures to help you maximize benefits while selling the car
7) Get the Documentation Complete: One of the sure-shot ways to get the best price for your used car is to have documentation complete and ready. Buyers attach high significance and more likely to buy a car with genuine and complete documents. Make sure you have got the registration copy (RC), valid insurance, and pollution under certificate (PUC) at your disposal as all these documents will be required for the sale. Make a separate file and have at least two copies each of the car’s documents along with the original documents. These copies will be helpful in case some officials enquire you about the deal in the future.
8) History Report: While it is not mandatory to have a history report of the car, it certainly adds credibility by ensuring the customer that the car has been taken good care of. You will be surprised to know that prospective customers are willing to spend extra for a well-maintained used car and its history report will assuage their concerns about the car’s reliability – one of the most pressing concerns one have while purchasing a used car.
9) Right Impression: Before you put up your used car for sale, make sure to get it washed, waxed, cleaned and serviced. Remove all scratches and dents, fix the paint job, clean interiors, polish the material, and top up fluids like engine oil, gear oil, brake oil, coolant, etc. Pay special attention to ensure all the equipment is working fine especially the air-conditioner, music-system, parking sensors, and camera system of the car. Remember getting the first impression right is of paramount importance as it sets the tone for the deal.
10) Estimate Value: You will be able to negotiate confidently if you have got a ballpark estimate of your car’s value. Visit used car valuation and enter some basic details regarding your car such as registration year, manufacturer, model name, and variant to get an estimated value of your used car instantly. Use this value as your base price and start negotiating by asking 15-20% higher than the estimated value. This margin will give you some headroom for negotiation and even if you close the deal on the 10% higher value than the estimated price, it can be safely termed as a good deal.
In sum, if you are able to follow some of the measures of the total nine mentioned above, we are sure that you'll be able to maximize your benefits on the deal. All you require is a little bit of research and some degree of persuasiveness. Remember, you have to alter your strategies once you switch the role from a buyer to a seller and vice-versa although your research, communication, and more importantly, your knowledge of the product will be of utmost importance. Our motive at CarDekho Gaadi is to empower our readers through the knowledge and to further your understanding of the cars and automobile industry as a whole; you can visit the blog section of the portal at Car Selling Tips.
Also Read:- Facts about Exchanging, Selling, and Buying Cars