Want to trade in your existing car?

Please read the following carefully to understand how we are equipped to handle trade-in's.

We will only consider trading your existing vehicle if:

 The vehicle is 10 years old or less, and;

  • The vehicle is stock standard or near stock standard. Modified cars are actually worth LESS than a stock standard example;
  • The vehicle is in good condition, and preferably with full service history.

 We do not trade the following vehicles:

  • old imports;
  • any vehicle over 10 years of age;
  • modified cars;
  • cars that are "repairable write-off's";
  • accident damaged vehicles;
  • cars that have money owing on them (unless you are prepared to pay it out and/or add any shortfall to your existing loan);
  • incomplete projects.

The whole trade in process is one of the most commonly misunderstood part of the whole car buying process, so the following examples and information hopefully will make this whole concept easier to understand.

Firstly, the most important thing to grasp when you are asking any dealer to trade your existing car is this: You are effectively asking us to buy your car from you.

We are a car dealer. We don't pay retail for cars. We aren't looking to keep your car to own ourselves. This is reason alone why the "but mate, I spent $5000 on the wheels and $8000 on the in car entertainment" really means nothing when it comes to the realistic value of your car as a trade-in. All it means is that when it comes to resale, it MIGHT make your car more appealing than the one down the road, BUT sadly it doesn't make it worth thousands more. This is why its often best to trade a stock standard car, and perhaps explains why we would never be interested in trading modified cars.

So, with all this in mind, and on this basis, we naturally are buying your car from you at a wholesale price, that allows us to make a profit when we sell it, whilst also allowing for the considerable costs and risks involved for us to do this. In effect, to sell our car, by trading yours as part payment, we effectively now have to do double the work, and hence take double the risk.

This probably also serves to clearly explain why we aren't going to be "swapping" your car on one of ours either...

To get a ballpark idea what your car is worth as a trade-in, go to Redbook as a starting point, but bear in mind that this is a very rough guide only, and current market fluctuations can significantly vary this.

As such, this is where many customers end up disappointed, because they somehow think that their car is worth retail money as a trade in. It should now be apparent that it isn't. Your car is worth wholesale as a trade-in. If you want to get retail money, our best advice is to sell it privately (at the cost of all the dramas and inconvenience that comes with this...) and then come and talk a cash/no trade in deal. Any dealer that kids you otherwise is lying to you. That's the sad but honest truth!

So assuming you realise all this, and still want to trade your vehicle, the following two examples will serve to illustrate the real situation that many car dealers have hidden for years, and in many ways, remains a "trade secret" to this day. In the interests of us doing honest and transparent deals with our customers, read on to bust the myths...

We often have someone say to us: "yeah a dealer down the road told me that my car is worth $45000 as a trade but you are telling me its $35000. How come? Are you guys ripping me off??" No, we aren't. Quite the opposite- we are being 100% honest with you about what your car is really worth. Read on...

Theoretical Example:

You are looking at a 2010 Chevrolet Camaro at Shonky Motors Pty Ltd, and they have listed the car at $90000. You take your Holden VE HSV R8 to get a trade in price, and they tell you it's worth $45000 as a trade in. The changeover figure, or the REAL AMOUNT you have to pay to own the Camaro, is $45000, plus your HSV as a trade in.

You then walk in on our yard and see the exact same Camaro, advertised at $75000, some $15000 less than the car you looked at down at Skonky Motors. You ask us to price your car, and we tell you that your HSV is in fact actually only worth $35000 as a trade-in. Wow, we are ripping you off, right? WRONG! DO THE MATHS!

The change-over price to own our Camaro, or the amount you actually have to pay on top of your trade in, in this example, is $40000. That means, in this case, that you are $5000 better off!

As you can see, because we priced our Camaro at a bargain price for a cash buyer, we do not have the extra $15000 in the car that Shonky Motors have in their car. This is known as the "dealer loading" to allow an over-inflated trade in value to trick the customer into thinking their trade in is worth way more than it really is, as its human nature to focus on what YOUR trade-in is worth, as opposed to what you are REALLY paying. In fact, most people can clearly tell you what they got for their trade in years down the track after doing a deal, but rarely can recall what the changeover price was or the window price of the car they purchased. Think about it... its probably happened to you or someone you know. Don't ever be a victim of this trick!

So in this example, you can see that whilst we cant offer you a grossly inflated (and unrealistic) trade-in valuation of the HSV at $45000, you are actually $5000 better off. 

At the Toyshop, we price our cars sharply for the cash buyer (which is probably one of the reasons you came to us in the first place!) , but of course, we logically cant offer you a grossly inflated (and unrealistic) trade in price, when we don't have that hidden "dealer loading"  in our cars to begin with. We simply cant give it to you at both ends of the deal.

Feel free to call to discuss trade in questions you may have.