Recycling program: how it actually works and how to get into it in time

April 16, 2021 Lada.Online 8 001 4

More than 30% of new LADA cars are sold under the Trade-In scheme, and 10 years ago, at best, every tenth car was sold this way. This process benefits both the brand, which increases its image and its profitability, and the client, who is provided with a comfortable and safe transaction. LADA’s working methods are not fundamentally different from the generally accepted ones. But they have their own know-how - what exactly, Kirill Kuritsyn, head of the department for the development of sales of used cars at AVTOVAZ JSC, told the newspaper VA Volzhsky Avtostroitel.

Recycling program

The current recycling program for old cars involves paying from 40,000 to 50,000 rubles for handing over your old car when buying a new one.

The buyer receives 40,000 rubles in the form of a discount on a new car when purchasing under the Trade-in scheme. In such cases, car dealerships cover all costs and paperwork.

You can get 50,000 rubles if you independently arrange for the car to be scrapped, but then you will have to fill out all the documents yourself and pay a recycling fee, which is approximately 4,000 rubles.

Interview

Do LADA dealers sell only used cars accepted for Trade-In, or any cars at all?

Yes, some dealers can buy the client’s car or accept it on commission. The service of purchasing used cars from corporate clients, as well as from individuals purchasing new LADA cars, is being developed using a buyback scheme. But the basis of sales are cars received by the dealer as part of the Trade-In scheme.

Are all LADA dealers involved in used car sales?

Of our three hundred dealers, more than 90% are involved in this business. Dealers are paying more and more attention to the development of this area, creating separate divisions for the purchase and sale of used cars, using modern IT solutions and call centers.

Do you often sell foreign cars to Trade-in in exchange for a new LADA?

Yes, this happens quite often. Moreover, sometimes clients rent out foreign cars of a higher class.

Are there any differences in the Trade-In system used by LADA from similar programs used by other brands?

The rules of the game are the same for everyone. As for LADA, we are actively developing sales of used cars so that this service is provided in a high-quality, civilized, and modern manner. We have begun to offer the Trade-In service much more professionally, this is even noticeable from conversations with dealers - and I very often talk with managers of LADA car dealerships.

Are there any restrictions for clients, for example, is there a category of cars that are not accepted for sale?

First of all, this applies to cars that have legal problems - we do not work with such cars. Otherwise, there are no such fundamental points.

Moreover, by conducting a selection of used cars, we select the best ones, which are then sold as certified ones. This project is called LADA Selection. What are the conditions of this program, which, by the way, distinguishes LADA from other brands? If a car is younger than 5 years old, has undergone routine maintenance, has performed well when assessed using a 77-point checklist, and has less than 100,000 miles on it, then we sell it as a certified used car. Such a car is provided with an additional warranty of 12 months and also for 12 months. Our partner banks provide a more favorable loan interest rate for such a car.

By purchasing a certified used car, the client actually receives the best offer on the secondary market - finding a similar car on your own is very difficult. We started launching the LADA Selection program in 2022. 14 dealers participated in the pilot project, and by the end of the year we had sold 80 of these certified LADAs. In 2022, sales amounted to about 600 cars (there could have been more if not for the pandemic). In 2022, more than 200 dealers are already involved in the sale of certified LADA Selection cars.

Already now you can go to the website lada.ru and see all offers for the sale of used cars from dealers in your region, including those marked “LADA Selection”. Working with the site is convenient for both clients and dealers: a car dealership specialist simultaneously, without unnecessary movements, places an advertisement both on the corporate resource and on popular resources like avito.ru or auto.ru. Also on our website, the client can conduct a preliminary assessment of his car, which he is going to take to Trade-In. We plan to actively develop all these services, convenient for both the client and the dealer. It must be said that the LADA Selection program is comprehensive and pursues long-term goals. As part of this project, we conducted training for dealer network specialists - heads of sales departments, appraisal specialists and used car sellers. This means that modern standards of customer service, from scripts to visual identification, are coming to the field of used car sales. The LADA Selection program encourages owners to undergo routine maintenance, which ultimately pays off. The car has a transparent history and is more liquid. This is our contribution to increasing the civility of the secondary market. By the way, every used car sold through a LADA dealership passes a 77-point inspection, and not just certified cars.

Does it often happen when a client comes to a car dealership to once again make a purchase using the Trade-In scheme?

Yes, this happens quite often, and we expect that with the development of the LADA Selection program there will be more such clients. For example, owners of LADA Granta are switching to LADA Vesta. And owners of LADA Vesta sedans are switching to LADA Vesta SW Cross. Naturally, for these clients it is profitable to hand over a properly maintained car, purchasing a new, more comfortable and equipped one. And now our dealers, when selling a car, warn the client: undergo maintenance according to the regulations and in the future we will be happy to accept your car for Trade-In.

There is an opinion among buyers that Trade-In is unprofitable; you can sell the car yourself for more money. What can you say about this?

It must be remembered that Trade-in is a service provided by the dealer, allowing the client to comfortably and safely exchange his used car for a new one.

Today we provide clients with differentiated discounts when purchasing a car under this scheme, for example, under the “Trade-in LADA Selection for Loyal Customers” program. To a certain extent, this compensates for the desired benefit the client hopes for when selling a used car. It is worth noting that the average period for selling a car on the secondary market is a month. In our case, the client completes the transaction in a couple of days, which saves a lot of time. By contacting an official LADA dealer, the client saves his nerves. After all, not everyone is ready to take a car to viewings, spending a lot of time on it. Not everyone is ready to meet with potential buyers almost every day, among whom there are many professional players in the secondary market. Resellers will definitely try to reduce the price, and they often do it rudely. We relieve the client from all this. For example, when a car undergoes an assessment and full technical diagnostics at an official dealer, the staff is obliged to give all comments on the car correctly and reasonably. These are our standards, we teach this in trainings for dealership staff.

I would like to note that working with used cars is not included in the list of mandatory services of the dealer - one might say, this is a bilateral initiative between LADA and the car dealership. And we have dealers who do not sell used cars, but transport cars accepted at Trade-In to their partners or to a higher holding company. But if a dealer undertakes to sell a used car, he must do so in accordance with all LADA standards.

Have you handed over your car through the Trade-In program? How was the value of your car assessed? Leave your reviews in the comments below.

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Step-by-step instructions for car recycling

The entire process of exchanging cars without using the Trade-in program is as follows:

• A power of attorney is issued to transfer the car to the dealer for its subsequent disposal;
• The car recycling service is paid from 3,000 to 7,000 rubles, depending on the dealer;
• Transferring to the dealer a power of attorney, a copy of the payment receipt and the car itself;
• Receiving from the dealer an official certificate of disposal and documents for receiving a subsidy;
• Drawing up a contract for the purchase of a new car at a discount.

LADA cars under state programs 2022 – conditions, discounts, models

Effectiveness of preferential car loan programs for VAZ cars in 2019

To ensure maximum benefits, it is not enough to produce a high-quality product - it is important to be able to properly promote and sell it. In the case of the automobile market, this statement is doubly relevant due to high competition.

In order to retain regular customers and attract new ones, it is necessary to implement more favorable purchasing conditions through various promotions, special offers, etc.

In the current conditions of the Russian market, domestic companies represented by VAZ compete quite successfully with Western manufacturers. In addition to government support, defending positions is achieved through competent company policies.

Special offers from VAZ

Each program provided has its own specific restrictions and conditions of participation. The maximum benefit that can be obtained from a chosen initiative also varies. To understand the possible prospects, it is worth considering the available options.

As for the widespread government initiative - the recycling program , which involves providing a discount for handing over an old vehicle for recycling, it is not valid at VAZ in 2022 . However, official dealers of the manufacturer have the option of purchasing a car at a price lower than the market price if the buyer has scrapped his old car.

“First Car” program: conditions of participation

The program was initiated by the state with the aim of financially supporting individuals who wish to purchase a vehicle. In order to participate and benefit from the assistance provided, the applicant will have to meet specific conditions:

• citizenship – exclusively of the Russian Federation;
• an important point that determines the essence of the program - before applying, the citizen did not own a vehicle;
• having a driver's license;
• You need to have your identity card and income certificate with you.

The initiative covers 10% of the cost of the car. In the Far Eastern regions, the discount increases to 25%. This discrepancy is due to local characteristics - residents of the Far East prefer higher quality and cheaper Japanese analogues. Therefore, to encourage citizens to purchase domestic cars, the government was forced to introduce such conditions.

Family Car Program: Conditions of Participation

Another government initiative, but its goal is different: if in the above proposal support was allocated for people who decided to buy their first car, then the essence of this program is to help parents with children.

To receive a discount when concluding a transaction to purchase a VAZ vehicle, it is important for a citizen to ensure compliance with the following requirements:

• citizenship – exclusively of the Russian Federation;
• the applicant must be the father or mother of two children whose age has not exceeded the age of majority;
• prove that in the previous 12 months no transactions were concluded to purchase a car using funds from a targeted loan.

In addition to the standard list of documents, including a passport, income certificate and driver’s license, persons interested in this proposal will have to provide a birth certificate for each child.

Trade-in: conditions of participation

With this offer you can exchange your vehicle for a new VAZ car. To achieve a discount on this basis, you need to take into account the rules of participation:

• The vehicle has been owned for at least 6 months;
• complete set - complete;
• year of manufacture, make and model do not matter;
• one car – one discount. It will not be possible to sell several old cars at once in order to significantly reduce the cost of a new one. You will have to choose one transport.

The above criteria are assessed at the company's dealership. If the employees have not identified any complaints, then you can proceed with registration, which will require certain documents:

• vehicle registration certificate;
• identification;
• vehicle passport;
• service book – as confirmation of the maintenance of the machine.

Additionally, other documents may be requested. For example, if the applicant is not the owner of the vehicle, then a notarized power of attorney must also be submitted.

ECOGAS program: conditions of participation

This proposal operates within the framework of the implementation of Government Decree No. 667 of 2016, the essence of which is to provide subsidies to manufacturers of vehicles using natural gas as a motor fuel. Accordingly, this program applies exclusively to gas engine equipment manufactured in Russia.

LADA FINANCE: conditions of participation

A special car loan program implemented by Avtovaz JSC and partner banks, which are the following, VTB (PJSC), Cetelem Bank LLC, Rusfinance Bank LLC. The advantages of this option for purchasing a vehicle are:

• interest rate is lower than standard offers;
• the amount of the down payment has been reduced;
• optimal loan terms;
• A preliminary decision on an application for borrowed funds is made in a few minutes.

The basic requirements for the applicant are as follows:

• citizenship – Russian Federation;
• presence of registration in the region where the request was submitted;
• age restrictions – from 20 to 60 years;
• length of service at the last place of work - at least 3 months, total work experience - at least 12 months.

When contacting partner banks, you need to have documents with you. In addition to the passport and driver's license: INN, SNILS, work book, income certificate, military ID. Depending on the lender, the list may be adjusted.

Summer offer: conditions of participation

There are no requirements for the applicant under this initiative. The company operates purely on the principles of a free promotion, which is the summer offer. That is, for some models, certain discount amounts are established for the summer period. To use them, just select the appropriate option.

What is Trade-In at a car dealership?

You exchange your old car for a new one, making a small additional payment. In English, “trade-in” means the process when an old item is handed over in order to purchase a new one.

We can say that this is a mutual exchange, using which you exchange an old car for a new one, or choose a used car of a suitable model. It all depends on your desire. Car dealerships offer a fairly large assortment, you will always find a new model.

At the car dealership, experts will evaluate the old car and announce its value. This amount will be deducted from the cost of the new vehicle you wish to purchase. As a result, you will not only sell your old car, but also pay less for a new one.

Video: What is a car trade-in - review of the service

Advantages of Trade-In when buying a car

The Trade-In system has a lot of advantages, the following can be listed:

• The exchange process will take no more than 4 hours
  .

• The car dealership staff will help with paperwork
  . You don’t have to go to the traffic police; all documents are completed on the spot.

• You will save on pre-sale preparation of the car
  . You won’t have to post ads, correct car defects, or pay for parking at the car market when selling. You will sell the car as is.

• The new car comes with a warranty
  . You will receive ownership of a vehicle in good condition. His history will be “clean”, the security of the transaction is guaranteed. All defects and shortcomings, if they arise during operation, can be corrected free of charge.

• It is possible to conclude a deal without depositing your own funds
  . To do this, use trade-in and credit.

• Many car dealerships offer bonuses to customers
  . This is an opportunity to undergo a free technical inspection or other pleasant little things.

How a car is valued at Trade-In

When evaluating a car at a car dealership using the Trade-In program, keep in mind that the cost of the car will be affected by:

• appearance of the car (presence of chips, dents, rust, scratches);
• popularity of the car brand and model;
• car serviceability;
• equipment;
• car interior (whether you smoked in it or not, wear on the steering wheel, gear lever, wear on seats, etc.)

On average, when selling a car through the Trade-In program, you will lose 10-15% of its market value, but you will sell it faster and without hassle.

Video: How to return a car to a car dealership using the Trade-in program with maximum benefit