What Happens to Your Trade-In Car When You Resell It
When considering trading in your vehicle, you might wonder if the dealership fixes any issues before reselling it. Here's what typically happens, and how you can protect yourself from unexpected complications.
Dealership Practices and Trade-Ins
When you dump a vehicle for a trade-in, it's often on its last leg. The engine and transmission usually need replacing. Dealerships have different strategies for trade-ins. Some might auction them off to used car dealers, while others may attempt to resell them through their own lot.
Does the Dealership Fix Any Problems?
The answer is generally no. Dealerships don't typically address significant issues that contribute to the vehicle being a trade-in. They may, however, make minor fixes to make the car more presentable. If the trade vehicle is in poor condition, the dealership will adjust the trade price accordingly to avoid incurring the cost of repairs.
A specific example involves a 2013 Dodge RAM that had water leakage from the gasket, causing delaminated carpet and rust. Despite these issues, it was traded for another vehicle without any repairs being made. The dealership put the car on their lot and sold it as is.
Health and Safety Concerns
Part of the concerns when trading in a vehicle are the potential health complications due to issues like mold or other hazards hidden from the buyer. In the case of the 2013 Dodge RAM, an odor was present, which led to a mold test, but no mold was found. However, the buyer was at risk for mold exposure, which highlights the importance of disclosing such issues.
Dealer Accountability
Dealerships may not inform buyers about these pre-existing issues. In one instance, a 2016 Ford F-150 XLT traded with a known oil pan leak was immediately resold without any repair attempts, putting the next buyer at risk.
Lessons from Trade-In Experiences
Trading in vehicles presents both advantages and disadvantages. On the positive side, you can often get more money by trading privately. On the downside, dealerships may not fix significant issues before reselling.
To protect yourself, it's essential to be aware of potential issues and disclose them in writing. This way, you don't bear the risk of unexpected repairs when the vehicle is resold.
End of Lease and Trade-In Considerations
Leasing a vehicle can be complicated, especially when dealing with interest rate markups. For example, after leasing a 2019 Ranger and trading it for a 2019 KIA Sorento, the interest rate was increased, resulting in higher monthly payments.
Leasing can also lead to hidden costs, such as depreciation. After buying out a lease, one might find that the dealership's financing practices are not favorable.
Dealerships are often unresponsive to complaints, whether about the vehicle or leasing issues. Best practices include documenting issues in writing and considering state resources if necessary.
Conclusion
Trading in a vehicle and leasing a new one can be risky, but understanding the potential pitfalls and being proactive can help you protect your best interests. Always be wary of undisclosed issues and consider the long-term financial implications.