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Author Topic: Bike trade in??  (Read 678 times)

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Offline GazGaz

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Bike trade in??
« on: June 25, 2017, 10:09:59 am »
Hi, what is the procedure to trade in a bike for another bike? Mine still has finance on it aswell. How does it all work in terms of cost. Thanks
Will go where the road takes me

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Offline Geel Kat

Re: Bike trade in??
« Reply #1 on: June 25, 2017, 10:15:09 am »
Chat to JustBendIt, he knows all the details around these sort of things.
 

Offline JustBendIt

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Re: Bike trade in??
« Reply #2 on: June 25, 2017, 11:39:46 am »
Hi Garrin

I need more info

1. Is the smaller bike that want to buy from a dealership or a private buyer ?

Let's say hypothetically your bike is worth R100 000.

The dealership offers you R85 000 on a trade in because they want to re-sell for profit at R100 000

You still owe R90 000 - therefore there is a shortfall of R5000 on the trade-in vs the finance settlement ... you will then have to pay this in to settle your current bike in order to get the new bike ... or the dealer can add R5000 to the price of the new bike ... either way the net effect is the same

Try and get the best possible trade in for your bike ... you don't mention how old it is or how much is still owing on it but ideally you want the trade in to at least match what is still owing ... i.e you don't have to pay in when you trade it in

Another scenario

Your bike is worth R100 000

The dealership offers you R85 000 on a trade in because they want to re-sell for profit at R100 000

You still owe R50 000 on it

In this case the dealership must either pay you the balance of R35 000 over the finance settlement amount OR deduct R35 000 from the price of the new bike

Whichever way it happens you must tell the dealership that your current bike is still financed and give them all the account details thereof - they will then settle it (pay it off) when you trade it in ... please make sure that you insist on proof that they have settled it because I have heard some horror stories in the past of people who have discovered a few months later that the financed vehicle they traded in is still on their name and has not been settled - you as the finance holder are still responsible because you signed the contracts with the finance institution

You are welcome to call me anytime on 082 520 1762

Regards Justin
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Offline Poundfoolish

Re: Bike trade in??
« Reply #3 on: January 03, 2018, 03:17:27 pm »
What would happen in the situation where the bike you want to buy is either worth less than the bike you want to trade in or the same?

Ill give you the example
lets say I get 85k trade for my bike and the bike I want to buy is 90k
and I owe 12k on my bike still.
 

Offline bronzy

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Re: Bike trade in??
« Reply #4 on: January 03, 2018, 03:26:09 pm »
What would happen in the situation where the bike you want to buy is either worth less than the bike you want to trade in or the same?

Ill give you the example
lets say I get 85k trade for my bike and the bike I want to buy is 90k
and I owe 12k on my bike still.
well then the dealership must settle the balance to the bank so you would have to give the dealership price offered R85000 less  R1200 settlement
so you have R73000 over and the new bike is R90000 so you would have to give the dealership your bike and  R17000
 

Offline Poundfoolish

Re: Bike trade in??
« Reply #5 on: January 03, 2018, 03:31:49 pm »
Thank you.
cant tell you why that was so difficult for me to wrap my head around