A vehicle exchange program is a program that allows car owners to trade in an older vehicle to their dealer for a newer vehicle without paying higher monthly payments, according to Honda. Some possible benefits of exchanging a vehicle in this manner include lower monthly payments, lower maintenance costs, access to newer security features, and lower fuel costs due to increased gas mileage. Dealers benefit from this exchange by increasing their supply of in-demand older vehicles.
Many car dealers offer vehicle exchange programs that promise to buy old cars at higher than their market value and to work with the buyer to establish financing while offering new warranties. Older cars can be exchanged for newer cars that are used or brand new, according to Toyota of Dallas. In order to take advantage of a vehicle exchange program, the current car has to be made by the same manufacturer as the cars offered at the dealership, and it typically has to be in good working order. Sometimes, dealers are looking for a specific make and model of an older vehicle.
Another benefit of the used car exchange for the dealer is that the dealer has a detailed vehicle history and therefore greater confidence in both purchasing the used vehicle and reselling it, states Performance Lexus.