Used Car Trading – A Brief Introduction

Used Car Trading

With global demand for used cars forecast to increase exponentially over the next few years, an attractive alternative investment proposition for wealthy people is the used car trading industry. This industry has gained momentum as one of the best home based business opportunities for anyone willing to learn the ropes. The global-used Car Trading Service industry size is estimated to reach USD millions by 2021, of which, at a CAGR of % during the next five years. This means that the used car trading market will be a sizeable market in India in the coming five years. And the market is just getting started with several other countries like, Indonesia, Malaysia, and the Philippines.

There are different models of vehicles being traded. These can be from a new vehicle purchase, to an ecologically operated used car, to a refurbished or classic vehicle that has been re-sold. In addition to these, there are also the ‘new for old’ trade-ins. A common scenario is for an older vehicle to be bought by someone wishing to sell it to make some quick cash. This whole process of buying and selling of vehicles can be done through an Ecuity Clearing Company (ECC), which is a vehicle depreciation clearinghouse, where the buyer and seller negotiate on cash for vehicle exchange or cash for trade in, depending upon the individual conditions between them.

For this whole process to work, there are a number of pre-requisites that must be met. One of these is the completion of a full vehicle inspection by an authorized service center. A service center may include a Used Car Trader ( Towns Car) or a Used Vehicle Emporium (UV). These services are conducted by professionals who have the requisite knowledge, tools, knowledge and expertise in the whole process of used car trading.

Used Car Trading – A Brief Introduction

After the completion of the inspection, it is now time for the negotiation and if necessary, a counter offer is presented by the main user. The main user will then decide whether to proceed with the sale or to table the matter to come back later. If no further progress is made, then both the parties will end up with the previously stated outcome. This outcome can be a cash for vehicle exchange, free lifetime battery swap, or a free extended warranty. It all depends on the negotiation skills, bargaining power and the knowledge, experience and expertise of the buyer and seller, as decided by the courts or arbitration.

There are two major types of negotiations for used car trading, namely a cash for vehicle exchange and a free lifetime battery swap. A cash for vehicle exchange, also known as a ‘buy sell’, is the most simple and straight forward transaction that takes place between the buyer and the seller. This transaction takes place after the buyer has received his/her funds and agrees with the condition that the vehicle must be sold back to the seller within a specific period of time. This contract has no other obligations except that the buyer and seller should meet each other at the first working hour in order to close the deal. In the event of failure to reach an agreement, or if any other issues come up, then both parties can end up in a legal suit in front of a judge and the buyer and seller could face hefty fines if there are damages caused during the transactions.

On the other hand, the free lifetime battery swap is a very complicated process where in both the parties are in full understanding of all the terms and conditions involved. This type of transaction does not involve a legal lawsuit; therefore, it is less risky than the former. The buyer would also need to fulfill his insurance requirements before he can be eligible for the scheme. This is because the policy would have to state that the buyer’s car will be covered by Baas plan, which is the government’s car insurance plan.