Used Car Trade-In: Everything You Need to Know

We often hear about amazing deals that involve the exchange of a used car. But what exactly is it? When is it appropriate to adopt this type of contract? According to art. 1552 of the Italian Civil Code, " an exchange is a contract whose object is the reciprocal transfer of ownership of things, or other rights, from one party to another ." In other words, it involves the exchange of one good for another (or of one property right for another) without the payment of any monetary consideration.

The most common exchange is between a private individual and a dealer , but it is also possible between two private individuals ; this is less common but equally subject to very specific rules.

Car exchange between private individuals…

According to the Civil Code, car exchange costs should be split equally between the parties involved, but for cars in Italy, the cost of transferring ownership varies because it depends on the vehicle's engine size. If two vehicles have different engine power outputs, the owner of the more powerful car will pay a proportionally higher transfer fee. The same proportional difference will apply to any other administrative costs.

Between private individual and dealer

The most common type of car swap is between a private individual and a dealer. This occurs when a dealer trades in a customer's used car and purchases a new (or used) one, applying a discount to the selling price.
In this case, there is no exchange of goods or ownership, as required by the Civil Code, but rather a simple price reduction, calculated based on the value of the vehicle being sold. Obviously, given the nature of this procedure, exchanging a car at a dealership must always be aimed at purchasing another vehicle (new or used). In exchanges between a private individual and a dealer, the costs of the transfer of ownership are divided equally between the parties involved.