What does 'cost to change' mean?

Hi!

You have come highly recommended! Can you tell me please what do you mean by 'look at the cost to change'? Looking to trade in a Honda Jazz, 2005, 50k, 2 years left on NCT, against a Honda FRV diesel, 2008. Like this: http://bit.ly/n2soeA What cost to change am I looking at exactly.....(complete car ignoramus!)

Annmarie Jones (Dublin)

Aug 2011 Filed under: choosing used car

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Expert answer

Hi Annmarie,

Well you aren't expected to know everything! When we talk about 'cost to change' we mean that lots of people go into a dealership and are fixed on how much the dealer is giving them for their car.

When you do this, you are ignoring any potential discount there might be on the car you are buying. In the case of the Honda FR-V you show here, the car is €18,950. Let's say your Jazz is worth €5,000, which is probably about right, if the dealer says it will be €13,950 to change he is not really giving you any discount off the FR-V. 

When pricing a used car, a dealer is trying to figure out how much it will cost him to prep it for sale, which is often around €800. There is no major science to this, all we mean is that if you fixate too much on the price the dealer is offering you for your car you might not see the whole picture. Focus instead on how much it will cost you to get into your next car instead. 

Bear in mind that they do have to make some money, but use this as a guide when you are choosing your next one. If all this is still a mystery to you, come back to me again. 

 

I hope this helps! 

Complete Car Adviser