Overtrade Mystery

[Scs88]

hi guys

i have a potential question here

the scenario is as follows

 

i am buying a new car

have an old car for trade in

 

the AD dealer offered me X value for my car for overtrade( as u know those AD when they take in your old cars, the value they quote is super low)

however another 2nd hand dealer offered me X+ 3K value for buying my car

in return, he will use another old car he has at Y value, transfer it to my name, and i use this car to overtrade with the AD at the value he sold it to me. i have to pay a small amt of transfer fee for this car ( prob 200-300 because the car is quite cheap at ard 2k)

 

in this way, i can get additional 3K value discount overall for my new car

 

just want you guys to offer your honest opinions, is there any gimmicks or loopholes?

[Scs88]

any bros can offer their esteemed advice??

anything to look out for in such scenario?

[Try_conti]

obviously your current ride has value. hence 2nd had dealer is willing to tempt you with x+3k.

 

the problem is will the AD still give you the same amount for the 'other' car ? you might end up paying more instead of a 3k discount.

[Friendstar]

obviously your current ride has value. hence 2nd had dealer is willing to tempt you with x+3k.

 

the problem is will the AD still give you the same amount for the 'other' car ? you might end up paying more instead of a 3k discount.

 

 

agreed.

 

key factor is how much is "the other" car worth to the AD?

[Scs88]

'the other car' is valued at teh same value

the AD agent and the 2nd hand dealer will meet tog with me to ensure the AD will take in the car at the same price as what the 2nd hand dealer will sell me...

[Little_prince]

hmm... dun really trust them... they're all snakes... be careful bro...

 

just think, if really worth it, why would they let you earn instead of splitting among themselves?

[Galantspeedz]

I rather not have the additional 3k.

[Limxiaoming]

Bro isnt it obvious.

 

He is a 2nd hand dealer why would he give u a car to sell cheap to AD to sell cheap to another 2nd hand dealer. to let the other 2nd hand dealer make a profit.

 

He can make money out of the car he wants to give u by himself.

 

Definately something wrong here.

 

If he just take the car from u x+$3k and u use that money to offset ur new vehicle. He earn, u earn.

 

DO NOT TRUST HIM

 

 

 

 

[Viotrex]

You're clearly the gullible kind to even pop this question. If it's too good to be true then it IS too good to be true. Besides, $3,000 isn't a lot and when you do find yourself in trouble, you'll have wished you didn't take up the offer.

[Fcw75]

If you dun want to trade in to AD for X value, just look for another dealer to sell off your car...be it X + 500, X + 1000, etc. Suggest you dun get into that deal with that dealer.

[Incom]

From your description, it does not seems that you are getting the extra money offer by the second hand car dealer. You still need to pay for the old car offer by the dealer. If you agree to the deal, the second hand car dealer will most likely ask you to hand over your car immediately. You are paying 2K plus the transferring fees for the old car from the second hand car dealer. Which works out you only getting a few hundreds (3K - 2+K) more from the deal. The result the second hand car dealer get rid of the car which he cannot sell away, and got a car which allows him to have a higher profit margin. You might end up with a problematic car which you need to take care until you take delivery of the new car.

 

Unless your AD can immediate deliver the new car to you. Commonly quotations from AD for trade-in cars, are price at the point whereby you collect your new car and hand over your old car (1 to 1 exchange).

 

Hope this information helps.

 

Cheers

[Little_prince]

makes sense....

[Elmo]

Think Incom has the best ans so far.

 

Learned something today

 

Basically the dealer wants to make use of TS to get rid of a car he can't sell. AD just sit by and take coffee-money since he doesn't care what car is traded-in, as he is earning from selling the new car.

 

Most likely the new car won't come so soon so TS will have to live with the cheap car for a while and the risk is TS will have to bear whatever problems with the car. It sounds like a COE car so insurance unlikely to be comprehensive. If kena accident during the period, TS will have to bear the repairs.

 

It is actually common for such arrangement - like a case where A has a car he finds it hard to sell. B (A's friend) is buying a new car without car to trade-in....so A just lonbang.

 

Nothing wrong, just whether TS feels the risk is worth the 3K or not.

 

 

[Donut]

you can go ahead with this deal. but ask for +6K, not +3K

 

if u can get +6K from the car dealer, its a good deal. But make sure you dun come out with too much cash for that overtrade in car

 

if that car dealer is desperate to get rid of that car, he will give in to you. Everyday the car sits in his car garage, the dealer is losing money

 

Another thing, trade in that car straightaway with the AD. The AD can take in the car first, before he gives u the new car. So the thing is whether you can do without any car for that waiting period of time or not.

 

if i can gain 6K, i dun mind not having any car to use for a while.

[Teriyaki]

Nothing wrong with that. Some AD will just take in any car for overtrade.

[Felipe]

when it comes to car loan matters, my approach is always take it as simply as you can. Sell yr car to the AD and forget about a 2nd dealing with the used car dealer. dealing with one is bad enough.

[Leeweekiong]

when it comes to car loan matters, my approach is always take it as simply as you can. Sell yr car to the AD and forget about a 2nd dealing with the used car dealer. dealing with one is bad enough.

 

ur right, lesser but definitely safer..