[narayan]

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.

[libranof1987]

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.

[vinya_jag]

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

[McLaren Rulez]

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.

[born_free]

I am planning to buy a new car on company lease, My current car is registered in my name and new car would be registered on company name.

Will the dealer/manufacture let me avail exchange bonus ?

[Tanveer_2558]

Originally Posted by born_free

I am planning to buy a new car on company lease, My current car is registered in my name and new car would be registered on company name.

Will the dealer/manufacture let me avail exchange bonus ?

AFAIK, Surely you can, What i have noticed is dealers giving pretty decent offers in the past 6 months as cash discount and exchange bonus as well, Surely makes sense to opt for the exchange with them now, Specially if you want to save the time in trying to sell your car outside.

[asit.kulkarni93]

If you are car is one of those which is well perceived by the market(ex-swift, innova, City. etc.) then it surely makes sense to sell it separately. You will definitely be able to get a better value than what your new car dealer offers you clubbed with the exchange bonus.

If it's the one with a lower resale value(sunny, sail, fabia.etc.), It's best you hand it over to the dealer and avail the exchange bonus. Firstly selling these cars outside will be very difficult plus the difference in the amount won't be much.

[Tanveer_2558]

Originally Posted by asit.kulkarni93

If you are car is one of those which is well perceived by the market(ex-swift, innova, City. etc.) then it surely makes sense to sell it separately. You will definitely be able to get a better value than what your new car dealer offers you clubbed with the exchange bonus.

If it's the one with a lower resale value(sunny, sail, fabia.etc.), It's best you hand it over to the dealer and avail the exchange bonus. Firstly selling these cars outside will be very difficult plus the difference in the amount won't be much.

No matter what car, Obviously the value you will get from a dealer would be a lower than what you will get by selling outside, But sometimes with the exchange bonus and some more bargaining the gap slims down further, Then its upto you to let the dealer do all the work and just hand him over the car, Or look for a buyer outside, Personally i have sold previous 2 cars of mine to the dealer because the gap from the market value was pretty close and i did not have enough time in hand to attain on an average 10-15 people to get a buyer out of them..

[Dr.Naren]

For a low selling car, dealer agrees to give exchange bonus without even actually exchanging your car . They ask for a copy of your RC and give away exchange bonus.

Most of the times, they valuate the car for lower and compensate it with exchange bonus. Anyways, everything depends on how badly the dealer wants to sell off the car.

[invidious]

Originally Posted by Dr.Naren

For a low selling car, dealer agrees to give exchange bonus without even actually exchanging your car . They ask for a copy of your RC and give away exchange bonus.

Most of the times, they valuate the car for lower and compensate it with exchange bonus. Anyways, everything depends on how badly the dealer wants to sell off the car.

I was given such an option when I was looking at the Xcent - he did not even wish me to sell off the car, just wanted a copy of the RC and he said he would give the exchange bonus. But is this a pretty prevalent practice? I thought it was one-off? Should I just ask the dealer if he would do something like this off the bat?

[PNTLovesNano]

Originally Posted by invidious

I was given such an option when I was looking at the Xcent - he did not even wish me to sell off the car, just wanted a copy of the RC and he said he would give the exchange bonus. But is this a pretty prevalent practice? I thought it was one-off? Should I just ask the dealer if he would do something like this off the bat?

Like said earlier, it depends on the dealer and the product too. Right now, the same dealer would insist you on exchanging car if are buying Tiago but not if you are going for Nano

I bought Nano Twist from Prerana Motors availing exchange bonus without exchanging the car while other Bangalore dealers at that time refused to do so. Finally, it depends on the bargaining capability.

[Dr.Naren]

Originally Posted by invidious

I was given such an option when I was looking at the Xcent - he did not even wish me to sell off the car, just wanted a copy of the RC and he said he would give the exchange bonus. But is this a pretty prevalent practice? I thought it was one-off? Should I just ask the dealer if he would do something like this off the bat?

I have seen many dealers following this practice. You can always ask the dealer about it. Also, few dealers had told me that I would receive that amount by cheque later because it has to be approved from company.

[red.devil_19]

Originally Posted by Dr.Naren

I have seen many dealers following this practice. You can always ask the dealer about it. Also, few dealers had told me that I would receive that amount by cheque later because it has to be approved from company.

I'm getting a similar offer for Hyundai Verna from one of the dealers in Bangalore. Is there a catch in this? The sales executive mentioned this offer as a "C2C" offer. Just wanted to know what is in it from the dealer's point of view and how to they manage to give the exchange bonus without actually exchanging the existing car?

I'd really appreciate if you or any other BHPian could enlighten me on this. Just hope there is nothing fishy about this practice!

[PetrolRider]

Originally Posted by red.devil_19

I'm getting a similar offer for Hyundai Verna from one of the dealers in Bangalore. Is there a catch in this? The sales executive mentioned this offer as a "C2C" offer. Just wanted to know what is in it from the dealer's point of view and how to they manage to give the exchange bonus without actually exchanging the existing car?

I'd really appreciate if you or any other BHPian could enlighten me on this. Just hope there is nothing fishy about this practice!

I exchanged my car at Hyundai and availed exchange bonus. As per my dealer, once old car details are entered in H-promise database, Hyundai compensated 50% of exchange bonus value to the dealer. Selling out the car lies with dealer though.

It seems they are just relieving themselves from reselling your car and offering you 50% of the exchange bonus as cash discount. But, anyway this is not a straight forward way and dealer is cheating manufacturer.

[red.devil_19]

Originally Posted by PetrolRider

I exchanged my car at Hyundai and availed exchange bonus. As per my dealer, once old car details are entered in H-promise database, Hyundai compensated 50% of exchange bonus value to the dealer. Selling out the car lies with dealer though.

It seems they are just relieving themselves from reselling your car and offering you 50% of the exchange bonus as cash discount. But, anyway this is not a straight forward way and dealer is cheating manufacturer.

Many thanks for the quick response PetrolRider. Good to know how the dealers are able to do this. Yes, they're offering exactly 50% of the exchange bonus amount as a discount if I share the copies of the RC and Insurance of my existing car. Although, I found it peculiar since Verna is selling quite well. One can understand resorting to such techniques if its a slow moving model!