What's My "Rough" Trade-In Really Worth?
Written by: Viraf Baliwalla, President Automall Network Inc., 2021-02-28
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During non-COVID times, spring is when many people start to think about buying a new or used car. While the used car market is not as active as it used to be pre-COVID, there is definitely some renewed interest now that spring is around the corner and car shoppers are starting to look around. In many cases, when you are buying your next car, you may have a vehicle to get rid of. Especially if that vehicle is older or in rougher shape, how do you get maximum value for it?
We all know that cars depreciate over time. As each year passes, the market value of your car is dropping. Good Ol' Betsy may have been reliable for all these years, given you no problems and still runs well but as a trade it in, many dealers may not even want it. Alternatively, trying to sell it privately may not be worth the headache and hassle based on a low market value, especially if you have to pay for repairs first. In such cases, one may consider giving it to their kids or to even donating it to Kidney-car or some other charity.
But wait! There is another possible solution that could make that car worth a lot more. There is a secondary market through exporting that is not commonly known about. As they say, one person's trash is another person's treasure. In North America, consumers have relatively high standards compared to many other areas of the world. Where someone in North America may turn their nose up to a cracked bumper or be leery about a few dashboard lights, people in other countries will simply appreciate that the vehicle still drives and can get them from point A to point B. As well, in those countries, vehicles are much more expensive than they are in North America and labour costs are significantly lower so repairs are quite inexpensive. Using a good exporter and depending on the make and model of vehicle, you can get a much higher value for your rough vehicle by selling it overseas.
Frank, from Toronto, bought a new Mazda3 using Automall Network's auto brokering services but had a 2012 Hyundai Elantra GLS with 198,000 km, a cracked front bumper and required other repairs. The Mazda dealer wouldn't take the trade-in so Automall Network arranged for a buyer in Nigeria. The vehicle got loaded into a shipping container and Frank netted out with $1801 in his pocket after all expenses.
Due to COVID, Sarah and her husband, also from Toronto, found they didn't need two vehicles any more and so wanted to sell their 2007 Toyota Highlander with 190,000 km. The vehicle required about $3000 in repairs to certify, the driver's side window no longer worked and there were several accidents reported over the years. They were hoping to receive around $2,000 for it. By exporting it to Africa, Sarah received $5012 after all expenses.
Not all vehicles are in demand to overseas buyers, but like everything else, if you cast the right net, there just may be a buyer in the wings.
Automall Network is an auto broker. It has a full dealer's license however does not operate like a traditional dealer; it works for the consumer. Just like one would hire a real estate broker to help them buy or sell a home, those that hate car shopping hire Automall Network to help them buy or sell a car.
For media inquiries, contact Viraf Baliwalla, President of Automall Network at (416) 249-5474 x303 or [email protected].
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