To New car dealers. Trade in price of old car matters...

In order to secure sales... Lowish trade in value often turned potential buyer off. Let me relate 2 case studies involving Hondas.

The first case study involved Honda and Toyota. Ever wonder why The New Vios outsold the City by 2:1 every month? Besides more aggressive marketing campaign (TV, Radio), sponsoring cars for Shell Fuel Economy Challenge, the MOST IMPORTANT reason is LOW Trade in of old cars for their new cars.

Case example, my Auntie was interested in fuel economical Compact family car. She wanted to trade in her Black 1999 Perdana V6 for a new car. She shortlisted her choice to City VTEC and Vios 1.5G as both within her budget. She prefer the more spacious City VTEC and wanted to buy, BUT and a BIG BUT, The Dealer offered RM32,000 only for her Perdana V6. She felt shocked over the LOW LOW trade in value. Next stop, UMW Toyota Showroom in Sec 19, P.J., The salesman in Toyota is Not only friendly but offered RM2000 Merdeka discount AND WAY HIGHER trade in value too. The dealer offered RM39,000 trade in price for her Perdana V6. To cut the story short, she ended up booking the Vios.

Case study 2: Ford and Honda. My friend is keen on buying a Compact SUV to replace his ageing 9 years old Toyota RAV4. He narrowed his choices to Ford Escape 2.3i and Honda CRV 2.0i. He visited both Ford and Honda Showrooms and test driven and compared both cars. The Escape wins on specifications (Leather, Large sunroof, electronic seats adjust, Bodykits, more powerful 2.3i engine from Mazda 6), and Price. His mind goes for the Ford, But being a fan of Honda, his heart goes for the CRV.

The problem is that Honda dealer don't know how to secure sales. Offered RM45,000 trade in price for the RAV4 with no discount (but offered 2 yrs free maintenence and V-Kool). In the end, he chose Ford. Why? Cash discount (He had chosen that over 0% Interest rates), 3 yrs warranty, RM55,000 trade in value for the RAV4. (that's 10,000 less + estimated RM8000 cash discount = RM18,000 less than CRV.

So Honda and other new car dealerships, the ball is on your side, buckle up and do something about your Trade in price of old cars before you lose your sales to your rivals... AND the the attitude (eg. friendly, prompt, helpful) of Sales Representative(s), Oh! And the financing as well especially the Interest rates and monthly repayments.