The goal in negotiations is to get the full listed price for your old car so you can pay as little as possible for the new one. So, how can you come prepared for the negotiation, and is it even possible to get the full price in a trade-in deal?
Thinking of Selling on Your Own?
If you believe you can get the full price by selling your car yourself, this is the most economical option you can choose. However, unlike a trade-in deal where you simply bring in your current car and drive away with a new one, selling a second-hand vehicle involves several steps:
- Advertising the car – posting ads on various platforms such as websites, social media, and classified listings to attract potential buyers.
- Handling inquiries – providing additional information to interested buyers, answering questions about the car's condition, scheduling meetings, and presenting the sale terms.
- Meeting a potential buyer – arranging a meeting with an interested person, showing the car, conducting a test drive, and addressing further questions.
- Vehicle inspection at a certified center – the buyer will typically request an inspection at an authorized center to verify the car’s condition and ensure there are no hidden defects.
- Receiving payment – once the price is agreed upon, the buyer transfers payment via cash, bank transfer, or another agreed-upon method.
- Ownership transfer – officially registering the vehicle’s ownership with the licensing authority, usually done via the Israeli Postal Service or online.
Simply Trade for a New One
The easiest and most convenient way to upgrade to a new car is through a trade-in deal. However, if you want to get the full listed price, it's essential to understand that the car’s model year plays a crucial role. A car older than three years is evaluated more thoroughly based on the following factors:
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Manufacturer’s Warranty – according to Transportation Ministry, a car inspection (MOT test) is required three years after it first hits the road. This is not random—after three years, most cars require more frequent and costly maintenance.
Therefore, vehicles older than three years lose more of their value, and in a trade-in deal, the dealership buying your car will likely need to repair and service it before reselling. These costs will naturally be deducted from the full listed price.
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Depreciation – according to the Israeli Tax Authority, a business purchasing a new company car should replace it every three years. After that period, tax benefits related to depreciation, usage value, and vehicle devaluation may no longer apply. This trend also affects the private car market, which is why leasing companies and car dealerships often offer three-year purchase plans, at the end of which you trade in for another new vehicle.
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Financing Companies and Banks – financial institutions prefer granting loans for newer cars. This can be seen in interest rate variations based on the car’s age and the maximum amount they are willing to lend. The reason is that when taking out a loan, the car is used as collateral.
If you fail to repay the loan, the financing company repossesses the vehicle. Since older cars have significantly lower resale values, lenders are less willing to finance them. This is why, in trade-in deals, dealerships always prefer newer vehicles.
Full Trade-In Price at Capital Motors
Many dealerships and importers offer new cars with financing plans. What makes these financing deals attractive is the ability to trade in your car every few years for a new one.
Some dealerships launch promotions several times a year, guaranteeing full trade-in value for customers who originally purchased their car from them.
Capital Motors is the only car dealership in Israel that allows you to get an online price quote for your old car via their website, with no commitment required. Their goal is to provide every customer with access to Capital Motors’ advanced digital services and offer the best possible conditions for purchasing a new car.
This, of course, includes conducting a trade-in deal in the most convenient way. To receive a trade-in price quote in less than 30 minutes without leaving your home, click here.
