Why You Are Getting A Low Trade-in Price
Getting low trade in prices since last month? The global economy is going through a tough time. We all are bracing up and doing our part in the fight against the Covid-19 pandemic. Precautionary measures and procedures have to be implemented globally to prevent any further community outbreaks. Working from home and social distancing are a norm right now. Border lock-downs are introduced everywhere to contain the virus. Aeroplanes, ships and cars are not allowed to commute in and out of any countries.
A huge part of typical car sales to sell used car Singapore depend heavily on the scrap/export market. For example, if you are changing your car because its COE is going to expire, then your car will either be dismantled for parts to our neighboring countries or will be exported to countries like New Zealand, Africa etc for resale. Because of this, you may have experienced getting lower trade in prices over the last 6-10 weeks. You may be thinking that your car still has 2-4 years to go, it should not be scrap/exported yet but instead registered at a car dealership or car mart in Singapore. Well, the truth is, it all depends on your COE value when the car was first registered. The rule of thumb here is, if your COE value is $65,000 and above, it will get scrapped/exported because your vehicle rebate amount added with body price will be very similar to what the market is asking for. Hence, there is no point for the dealer to take your car in, repair it and expose themselves to a lemon.
With the circuit breaker introduced on 6th April 2020, there has been a complete halt to the scrap/export market. Local exporters have zero means to dispose of your car, and export processing zones are closed. This further meant that encashment of your vehicle may take 2-3 months compared to the usual 2-3 weeks if what you wish to do is “scrap my car for higher“. However, you can still proceed to the local LTA authorized scrap yard. Though they may not offer the highest price, they can still help you out in the disposal of your ride.
Otua Auto is a consignment agent, whereby we help direct owners like yourself to find a direct buyer. We have transacted about 500 cars to date. You can also check our reviews and photos on our Facebook page. This will allow us to fetch a higher price for your vehicle.
You may ask how. We pass on the savings to you! What we do earn from is commission from the loan, insurance as well as a small administrative fee that we collect from the buyer. With the market slowing down, why not use this time to advertise with us? Consign with Otua car dealers and we will connect you with another buyer as soon as we can!