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Old 24th March 2016, 03:17   #31
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I think it would be unreasonable to expect a dealer to give you the same valuation as what you could get from an end customer. Many new car dealers may not sell the purchased used car directly and would mostly be handing it over to a used car dealer for onward sale. The exchange bonus is just a tool by the manufacturer and new car dealer to try and bridge the gap between the open market direct buyer valuation and what they can offer. Reason it's quoted separately is because it's not a fixed amount always and differs with the car you are trying to trade in, what you plan to buy and the availability of other schemes at that point of time.
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Old 24th March 2016, 09:02   #32
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Default Re: Exchange Bonus: Is it just a marketing gimmick?

The difference between the price you think you'd get if you sold it to an individual buyer and the price the dealer offers in exchange (value of the car + bonus) is the price you pay for your time and convenience.

Here's an example: My mum was driving a MH-reg. Zen in Gurgaon and was planning to buy an i20. Giving the Zen to the dealer and getting an exchange bonus worked for them immensely:
1) They didn't have to bother putting up an ad, showing the car, worrying about abuse to the car by potential drivers, the haggling
2) They didn't have to worry about sorting out the NOC bit from Pune RTO

Sure, they took a hit of about 30k overall but the time and effort they saved along with the convenience this transaction offered can't be quantified. What if it was 1 lakh rather than 30k? They'd have sold it themselves. What if I was at home? I'd have definitely sold it myself.

Long story short, marketing gimmick or value-add, the exchange bonus thing is mostly a win-win. The dealer wins the most, the seller wins a little. The guy who buys the car from the dealer, he's the one who gets screwed.
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Old 25th March 2016, 00:14   #33
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Default Re: Exchange Bonus: Is it just a marketing gimmick?

If you have the time and energy to wait for the 'right' price, you can try and sell it outside the dealership.
But our vehicle buys are never planned, are they?
You want to buy it around Dussera, or Diwali, or new year, you fear losing the heavy discounts the next month.
You plan to buy it around Feb-Mar, there are no stocks, and then invariably you start fearing about the budget changes.
It is the dealer who always plays with your mind.
I have always sold the old vehicle at a dealer for exchange. And have learnt to feel good after that. It has saved me many hours and sleepless nights

Last edited by vinya_jag : 25th March 2016 at 00:18. Reason: Incomplete
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Old 25th March 2016, 14:42   #34
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Default Re: Exchange Bonus: Is it just a marketing gimmick?

To be fair, dealer price + exchange bonus is typically quite close to the market value of the car as far as I've seen.

You might be able to eke out a little more but the convenience of it (old car goes the same day the new one arrives, minimal hassle, etc.) make up for it.
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