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The biggest assets one can have in Singapore are a house and a car. Owning a car is very expensive and one needs to decide wisely before buying or selling a car. It plays a major role in the financial status of a person. For some, It is a status symbol also. You can count on your fingers how many times a person will be trading or selling such an expensive car in his lifetime.
You might have had a memorable time with the car, going for long rides with the family, adventurous trips, and many fun-filled moments with it.
As the 10-year COE is going to end very soon, it is high time for you to weigh the pros and cons of trading or selling it. As there are new and used cars in abundance for you to buy, but it’s time for you to think cautiously about selling your current car.
Whether to trade-in or sell the car? Whom to trade-in? Whom to sell? Where do you get the most value? What are you actually looking for, money or a car or something else? You must ask yourself all these questions and do a good study. It is not that easy to take the decision, as there will be a lot of factors to consider and should not destabilize you financially. But, here our experts in the used-car field have already come out with some important points for you to consider and help you in taking the right decision.
1. Selling a Car
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If you want to sell your car, there are three options available. You can sell directly to a buyer or a dealer or a consignment agent. Each method has its own merits and demerits.
Whatever option you choose, definitely fetches you a better price than what you could get through trading-in. Without any mediation, if you sell all by yourself, the process and the deal will be under your control. You can also wait until you get your desired price for your car.
Here are the demerits which you should note. Selling a car is a highly time-consuming and difficult process. One should really have a considerable amount of time to find out the ins and outs of the transaction.
If you sell all by yourself to a direct buyer without third-party intervention, then you have to do the entire paperwork, handling advertisements, inquiries, and negotiations which is a tedious and lengthy process. Sometimes it takes months.
If you sell to a dealer, hopping from one dealer to another, getting quotes from them is also a time-consuming process. While writing the Terms & Conditions, you should be really vigilant otherwise, you will be easily duped by some deceitful dealers.
In case, selling your old car is not fruitful before your new car is delivered and you have an outstanding bank loan on your old car then you end up paying two car loans which will financially drain you out.
2. Trading-In a Car
Many car dealers will let you trade in your old car for a new car from them. The transaction will be very simple and convenient. The trade-in value of your old car will be deducted from the value of the new car.
In this type of transaction, under one roof both the selling of your old car and buying a new car will be done. Entire paperwork will be done by them. You don’t have to spend any time gathering information or handling inquiries or any other sort of work. It saves you from running to multiple dealers. Even if some repair work or touch-up has to be done to your car, everything will be done by them.
The trade-in value of your car which will be given instantly can be used as upfront payment for your new car and you don’t have to run from here and there to raise the upfront fee. This is an attractive offer to many especially in Singapore, where the cars are super expensive. It is absolutely a hassle-free transaction and saves you a lot of time and effort.
In a particular transaction, where there are pros, there will be cons also. In this Trade-in, you will not get a better price for your old car. You will get a lower value for your car than what it’s worth.
Usually, dealers can source for a few quotes and there is limited competition. So, it's needless to expect the existing market price for your old car.
When you trade in your car to an authorized dealer, they too will siphon off a certain amount as the brokerage fee from the trade-in value.
Once you take your old car and select a new one, if you are satisfied with the Terms & Conditions, then at one go, you can get your new car straight away.
3. What matters to you most?
Selling definitely fetches a higher price than trading-in but a lot of hard work and time is involved in it. Trading-in is a very comfortable and easy process where everything can be done under one roof.
In this busy and challenging world, many work persistently and also spend more time with their family. For them, Trading-in is the best option.