Trade in allowance

lawred2

Hi,

This is probably a stupid question; can someone explain a trade in allowance to me?

For instance; Toyota are doing a 3k allowance on new cars.. what does that mean for me? I have a 2009 civic worth about 7/8 grand..

Does the allowance only apply to those trading in a car that's worth less than 3k? Or is it added to whatever they deem the trade in to be worth?

Say 6.5 + 3 = 9.5 as trade in/deposit

colm_mcm

A lot of it is nonsense. All new cars contain discount that bump up the trade in price.
Eg, if ford are offering you 8k for the civic, Toyota won't offer you 11k.

bazz26

It's just another term for a discount that the manufacturer gives you. However it really only applies if your car is worth less than 3k. If your Civic is worth more than 3k then you will not get 3k extra on top of it's current value. It's really only valuable if you have an old car that is ready for the scrap yard.

lawred2

colm_mcm wrote: »

A lot of it is nonsense. All new cars contain discount that bump up the trade in price.
Eg, if ford are offering you 8k for the civic, Toyota won't offer you 11k.

Thought as much..

Been offered 9.5 by Peugeot.. I would expect that that's about the ceiling I could expect

colm_mcm

Is your civic 1.4 petrol?

bazz26

Try to focus on the cost to change price as the price of the new car could vary a bit from brand to brand. Also try different dealers of the same brand and try playing them off each other for the best price.

lawred2

colm_mcm wrote: »

Is your civic 1.4 petrol?

1.8 petrol saloon

I wouldn't have valued it anywhere near what Peugeot offered but obviously there was some discount being factored in

colm_mcm

I think the trade price of your car would be about 6500-6750, anything on top of that is discount being added.

lawred2

colm_mcm wrote: »

I think the trade price of your car would be about 6500-6750, anything on top of that is discount being added.

So Toyota could possibly offer 9.5 similar to Peugeot!?

colm_mcm

Potentially, there's only one way to know.

The "up to" bit is important

lawred2

colm_mcm wrote: »

Potentially, there's only one way to know.

The "up to" bit is important

Isn't it always...

Cheers

lawred2

In the end; didn't bother with a new car and traded in against another used car..

got a healthy 7250 for the civic

colm_mcm

What did you get instead?

lawred2

2012 Qashqai + 2

Low mileage and in great nick... high spec when it rolled off the production line. Delighted with the overall cost to change as well.