How Does Part-Exchange Work?
Posted: 13th April 2016
What is Part Exchange?
Part exchanging your car is as easy as it sounds. When you part-exchange your car, you use your previous car as a payment contribution towards your new car.
If you’re interested in part exchanging your car, arrange a meeting with the dealer to discuss the process and the prices is the always a great first step. Within the meeting you can then ask all the questions you need and come away with more knowledge. You and the dealer then both agree to a value on your current car - if you’re downgrading, it can decrease the amount you pay for the car you want (e.g. a 4x4 for a city car).
If you’re edging towards part-exchange, you should definitely go ahead if you already have your eye on a car from that dealer, this means you’ll be driving away in the car you love in no time. You should always keep in mind that any damage or repairs which need to be fixed will decrease the amount you get for your car.
If you was part exchange your car, you would need the same documents as you would selling your car privately. This includes the V5C and MOT certificates.
- Before handing your car in, make sure it looks good and has been cleaned well. This way the dealer cannot knock the price.
- Research your cars worth beforehand. This way you know if you’re getting a good deal or not.
- Quick way of selling your car – usually it can take weeks or months.
- You don’t have to deal with any time wasters which are quite common when private selling – avoiding a slow sale - a lot of time and effort goes into a successful private sale
- If you need to get rid of your current car quickly, this is the perfect solution.
- Helps bring down the cost of the car you actually want – therefore makes you happier in the long run.
- Just simpler and less time-consuming
- Possibly lose money which you could’ve earned if you sold the car privately.
- You’re more likely to get a better price from selling the car privately rather than part exchanging.
- Negotiation will need to be done – this isn’t always easy.
If you want a car on finance/lease, your current car will act as a deposit. For example, if your car is worth £4,000, this will be the deposit and the monthly payments will be lower. Check out the car lease deals we have available including poor credit car leasing and zero deposit leasing.