Handing Part Exchange in 3 months before replacement is due

Austin_yeahbaby

Hi,

First post

We have just ordered a new car with a 3 month wait.

The dealer wants our car next week in advance to sell on due to the current value as they say that the trade in value can't be fixed until the purchase date due to depreciation.

I'm cautious because worse case the dealer could go bust before the car is delivered and I would loose the whole value of my original car.

I'll get a loan car as the manufacturer (Nissan) is offering free loan cars to all orders over 3 months.

Is this usual practice ?

Should I take the hit on the actual price in 3 months or hand the car over and ask for the majority of the cash back now?

Any advice appreciated.

Kilty_2

How large is the dealer? What reason would you have to think they''re going to go bust?

Austin_yeahbaby

Dealer has about 5 sites,

no particular signs of going bust but I'm thinking that handing my £15,000 car over is a big deposit to leave until my new one arrive

Inactive

Austin_yeahbaby wrote: »

Dealer has about 5 sites,

no particular signs of going bust but I'm thinking that handing my £15,000 car over is a big deposit to leave until my new one arrive

Don't let them have it, let them wait, like they are making you wait.

Wh05apk

£15k is a lot to lose, "if" anything happened, but your car will depreciate, and could be worth nearly £1k less in 3 months time, a free loan car is a good offer, but there is a risk there, perhaps if they are financially sound, when they take your car, they will pay you the trade in price as a compromise?

colino

If they have taken the order, are they saying both the trade-in value and cost of your new car are equally fluid? Are you expected to just guess at the delivery cost?
If the numbers are set in stone and you like the deal however, play very hard with the loaner. Make sure it is at least the spec of the new car you are getting. No point suffering in a traderstip for months just to bag a deal.

smitchy73

Tell them to pay you the money for the part exchange then make sure you don't spend the money before you're new car arrives and needs paying for.

My mate had a similar problem, what made it worse is that they had taken photos of the car when he was in getting it appraised for the part ex, the following week it was in the local paper for sale, even though they hadn't been given the car to sell. He eventually got them to see the error of their ways as he had it on the order form how much had been agreed for the part exchange even though the car was a couple of months away from being delivered, his alternative offer to them was to buy the car off him at a slightly higher price than had been offered for the part ex and the could have the car at the time and sell it for what they offered it in the newspaper ad, which pretty much sealed the deal.

Flyboy152

Austin_yeahbaby wrote: »

Hi,

First post

We have just ordered a new car with a 3 month wait.

The dealer wants our car next week in advance to sell on due to the current value as they say that the trade in value can't be fixed until the purchase date due to depreciation.

I'm cautious because worse case the dealer could go bust before the car is delivered and I would loose the whole value of my original car.

I'll get a loan car as the manufacturer (Nissan) is offering free loan cars to all orders over 3 months.

Is this usual practice ?

Should I take the hit on the actual price in 3 months or hand the car over and ask for the majority of the cash back now?

Any advice appreciated.

It is not usual for manufacturers or dealers to offer loan cars while waiting for a build date.

I would agree that it would be wise to ask for the money when you hand over the car.

Flyboy152

Inactive wrote: »

Don't let them have it, let them wait, like they are making you wait.

It is not the dealer who is making the OP wait, it is the manufacturer. The dealer is the one who is offering the value on the part-exchange, it is not being underwritten by the manufacturer.

Over the space of three moths, the OP's part-exchange could lose three thousand pounds, what would be the point in the dealer taking that kind of a hit, when the margin in the deal could be only five hundred?

Flyboy152

Austin_yeahbaby wrote: »

Dealer has about 5 sites,

no particular signs of going bust but I'm thinking that handing my £15,000 car over is a big deposit to leave until my new one arrive

That's no guarantee of financial solvency. There have been bigger dealer groups, with no outward signs of difficulties, going to the wall

Flyboy152

Wh05apk wrote: »

£15k is a lot to lose, "if" anything happened, but your car will depreciate, and could be worth nearly £1k less in 3 months time, a free loan car is a good offer, but there is a risk there, perhaps if they are financially sound, when they take your car, they will pay you the trade in price as a compromise?

I wouldn't accept anything less than what was offered, or re-stack the deal so that the cost-to-change doesn't alter.