Originally Posted by Mortal Vagrant
My cousin called me today to ask me a simple query. He is trading in his SUV for a entry level hatchback (auto) due health reasons. I have no idea on if the dealer in such cases reimburses the excess cash. Or is no exchange policy applicable in this case. Would someone please clarify. Or does he sell it directly and not involve the dealer. He prefers the dealer due to ease of transaction.
Very apt query. There are following sides to it in my view.
For example your cousin has a Hyundai Tucson and wants to trade it for a i20 Automatic then in that case the dealer will not have a problem since your cousin is buying a same brand vehicle from him and dealer shall further trade the old vehicle via their used car program i.e H
-promise (Hyundai Promise). As for the cost, SUV are high depreciating cars so based on year of purchase and condition as on date the value of the old car will be decided. After that this value of the vehicle will be adjusted in the new one and balance (if any) will be provided via Cheque and not cash. In this scenario going by dealer is perfect and easy.
Similarly if the SUV is valuated via H-promise and your cousin buys another brand's auto hatchback then in that case too the payment shall be provided via cheque only.
Selling the car without dealer is also ok. No issues are there too. If he deals with a prospective buyer 1-to-1 then the mode of payment and value of the vehicle can be well negotiated. But it would involve a bit of running around for transfer deed et al to Notary.
As you later mentioned that its an XUV 500 of Mahindra so here is a online Mahindra used car valuation portal.
Hope this is helpful for you!