There was some discussion on here quite a while back about how many dealers were reluctant to take the older/cheaper trade ins now, because of the CGA and how dealers could not sell them with an "as is" proviso. Yet quite a few dealers on here still seem to be saying that they accept trade ins. So what happens to the lower end trade ins now (i.e those worth under $3000 or so)? I am guessing cars still valued around that level by insurance companies would be worth next to nothing as a trade in, perhaps only a few hundred? It is however a quick and clean way to get rid of an old car, rather than the hassle of a private sale.
kazbanz,
Sep 15, 8:37pm
Dealers are disposing of their "end of life" cars in a bunch of different ways. Some cars are simply sold on for scrapping to wreckers. Some are sold via auctions that are specific ."end of life' Some are sold through the yard with specific issues listed in the description or on the sale documents. Some are passed on to wholesalers Some seem to be sold as "private sales" by staff.
franc123,
Sep 15, 8:57pm
Whether to trade in or not depends on how keen you are to throw money away. If you get offered $500 as a trade in for a clean, tidy car that has no significant issues that realistically will sell for $2500 in the open market, rest assured it will most likely pop up somewhere in the market for that asking price. As above depends entirely on what it is and the shape it's in as to how its disposed of. Wholesalers or internal sale's to staff members are pretty common, it's neat and tidy and involves a nice degree of "disassociation" if you get my drift. I've even bought and kept cheap trade ins for my own and family's use for some time, even years, because theyve actually been too good to let go of!
buyit59,
Sep 15, 9:58pm
One of the problems that the CGA has created is a belief that a car should last forever or even longer ! . But they don't . https://www.stuff.co.nz/bu- siness/300062204/no-refund-for- -auckland-man-after-2015-jagua- r-suffers-unexplained-engine-d- amage
That case reinforces the fact that the legislation doesn't expect them to last forever. That doesn't stop a big section of the population from expecting cars to last forever. Reading through MVDT decisions shows that clearly. .
curlcrown,
Sep 15, 11:05pm
Its difficult to tell from a stuff article but I think the customer handled it all wrong, it is unreasonable to expect a new engine for a cost that was more than the price of the car. I wonder if he had have approached the dealer first, got a reasonable quote to repair and perhaps come to some arrangement whereby each party bore some of the cost. It could have been a much happier outcome for the customer.
rpvr,
Sep 16, 1:50am
There is one thing I find rather odd about this tribunal ruling. Nobody knows or has ascertained what has actually happened to the engine of this car! So how can a decision be made on "acceptable quality"? The assessor said it was unlikely to be a broken crankshaft, because that is rare. But if it was, then surely the owner has a case, as something has happened that virtually never happens to this make and model? I wonder what the owner will do? First step is to strip the engine I guess, and find out exactly what has happened.
gph1961,
Sep 16, 1:55am
I assess that no-one would pay for a strip and report
franc123,
Sep 16, 2:15am
That whole case was bizarre. Neither the owner or the selling dealer should have accepted a $44k installed price for presumably a brand new agent fitted crate engine and based what would happen next on that. How did they know that the original engine wasnt repairable without even knowing what went wrong with it? If the car had been purchased with MBI that's the very first thing an assessor would have ordered. Even at the absolute worst case scenario of say unrepairable block damage and no second hand engines available anywhere in NZ, a used one could have been imported from the UK and the thing got running again for a fraction of that cost. Not a lot of homework was done clearly.
curlcrown,
Sep 16, 3:07am
It seems the buyer attempted to reject the car and get a full refund which would not happen after a year. The buyer probably got spooked by the heinous quote. The dealer would not have been responsible for a full refund of the purchase price or have to pay for the car to be fixed else where. If the customer had gone back to the dealer for help the outcome may have been very different. I don't think the dealer would have been responsible for the full cost but they could have contributed a bit or at least get it fixed at a much much lower cost than the quote. The reason the customer lost in my view was that they wanted a full refund. That said you have to take it with a grain of salt because it is written by stuff, there are no doubt relevant details omitted.
That doesn't reveal anything more than what the original news article does. I'd wager that theres been an issue with DPF regeneration and the thing has ended up with a flood of diesel in the sump and killed it. Well maintained modern engines don't just die at random, any kind of a manufacturing fault with that engine would have shown up well before now.
toenail,
Sep 16, 8:54am
unless there is something seriously wrong with your car, don't see the point of trade-in.
rpvr,
Sep 16, 5:39pm
The point is often convenience, particularly if the person trading it in doesn't want the hassle of advertising and then having prospective buyers coming to their home, arranging for test drives and all that. Much easier to just drive up in the old car and drive away with the new purchase. This is the best option for an older person living on their own, for instance, who may be quite willing to do things this way if the cost to them is only a few hundred dollars.
rpvr,
Sep 16, 5:46pm
Would this happen as a sudden event, or would there be a warning?
sw20,
Sep 16, 6:36pm
Sadly the cost isn't a few hundred dollars. Even on a sub $10k car, you can be offered thousands less than the cars market value.
I've had frank discussions with dealers who we have bought cars off over the last few years and each and every one of them has said for us to buy the car then sell your old car at your leisure afterwards. They didn't want to insult us with the price offered to retail it and then stand by it for the next while.
kazbanz,
Sep 16, 7:05pm
That's interesting .When I first read it there was discussion over the request by the dealer and MVDT for the engine to be stripped to the point of crank being visible and it not being done.--or of course my memory might be screwed up and its another case I'm thinking of.
kazbanz,
Sep 16, 7:16pm
There are a number of reasons. The main one being that the general public can't be bothered with the hassle/inconvenience of going through the sales process themselves. The second major reason is that from their point of view the car is a ticking time bomb waiting to explode. Sometimes that really is the case but often they have been told of a "heap" of maintainence or remedial work their mechanic feels is coming up soon. One example I can quote.-- Power steering leak, rear shocks weeping, rust in tailgate, 2 tyres due for replacement soon, battery on its last legs and not secure.Oil service due. The owner saw the list and figured it was more than the car was worth to get it fixed so anything he got as a trade was a bonus.
kazbanz,
Sep 16, 7:22pm
That's pretty much bang on. With private sale car sellers asking the same sort of money for cars as dealers are logic says you have to trade in a car for a price you can make a profit when you sell it. That's even more so now with trade ins being more and more an unknown quantity quality wise.
toenail,
Sep 17, 7:09am
In the past,
trade-in value was $500, sold on the market for $2500. trade-in value was $20K, sold on the market for $30K.
I guess for cheaper cars, its not a big deal. But when you're looking at a $10k loss, its probably worth the trouble of selling it yourself.
The second problem is when you trade-in, you loose the leverage to negotiate the price of the car you're buying, instead you're trying to negotiate the trade-in value.
so you loose on the new car price too.
kazbanz,
Sep 17, 7:35am
in fairness I’ve worn both pairs of shoes . But it ant that simple - it never is . That $2500 sale is covered by the cga and have a look at the example l gave spend was about $ 800 to get it to scalable condition. The 30 k car had a truck load of time and money spent on it to bring it up to scratch. Not always the case. But pretty common
rpvr,
Sep 17, 5:41pm
I wish I could get the list of defects that you listed fixed for $800. I would probably never buy another car if I could keep the old one on the road so cheaply.
lythande1,
Sep 17, 5:59pm
I traded mine. It went to some guy who does I don't know what with them. Strips them for parts? Does them up? No idea. Apparently the dealer did that quite often.
kazbanz,
Nov 19, 6:12am
keeping in mind there is no intent for long term ownership involved The below was the "wof" repair list from a mechanic and what was actually done Power steering leak,---Wash reservoir,pipes,rack,pump,Driv- e check for leak.Replace hose retaining clip -$10.00 rear shocks weeping, replace shocks -$140 rust in tailgate, --Wire brush To bare metal treat with brunox check to WOF standards .Sand re treat prime and paint. $50.00 2 tyres due for replacement soon, 2x half worn used 165/65/14 $80.00 battery on its last legs and not secure. New battery and 250mm M6 threaded rod $100 Oil service due. Change oil and filter 10 w 40 oil and filter $60.00 The rest is labour allowance. To sell the car though That doesn't take into account the deep clean needed inside and out probably a solid 6 hours. It doesn't allow for buffing,minor paint repairs,Hubcaps an actual WOF on sale ,rego needed If the car was a "keeper' then a proper color match paint would be used,The tyres would have been new etc etc
If I was keeping the car
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