Part-exchanging can be a convenient way to sell your car. By trading your old motor in at a dealership in exchange for a discount on your next purchase, you can skip a lot of the hassle associated with selling your car privately.
Your car’s trade-in value will depend on factors such as its age, condition, and market demand. However, the part-exchange process is similar at most dealerships: you can put the value of your old car towards the cost of a newer one. Many dealerships also allow you to part-exchange your car to leverage a better car finance deal for your next purchase.
In this guide, we’ll examine the benefits and drawbacks associated with part-exchanging. We’ll cover the variables that can affect trade-in value - and share some tips to help you get the most out of your part-exchange deal.
Finally, we’ll look at how part-exchanging stacks up against other selling methods to help you make an informed decision.
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Is part-exchanging worth it?
Part-exchanging your old car could be a great option if you’re keen to get behind the wheel of a new one quickly. In some cases, you can take your car to a showroom and drive home in a new motor in the space of a couple of hours.
A part-exchange deal can make it easier to cover the cost of a new car. If you want to buy a new car on a finance deal, you can put your trade-in value towards this, enabling you to reduce your monthly payments.
Just bear in mind that dealerships are focused on making as much profit as possible, so you won’t usually receive the full market value for your motor. You may get a slightly better price if you have a newer, sought-after model that the dealer is keen to sell on their forecourt.
To gauge whether you’re getting a good part-exchange deal, run the vehicle’s reg number and mileage through our free car valuation tool.
Will I get less money if I part-exchange my car?
If you trade in your car at a car dealership, it’s fair to expect an offer that’s slightly below its market value.
Car dealerships will assess your vehicle’s condition and use market data when evaluating your car. However, they have higher overheads than private traders, which must be taken into account. Dealerships are also more focused on making a profit than your average private car seller.
It pays to be vigilant; if a dealer apparently makes a generous offer for your car, make sure they’re not inflating other costs on your new car to make up the difference.
Can you negotiate part-exchange prices?
Yes, it is usually possible to negotiate when buying a car through a part-exchange deal – and we encourage you to do so.
Before visiting the showroom, you should get an online valuation for your car and pay attention to what identical cars are selling for online. At this point, you should also decide the minimum offer you’re willing to accept.
Understanding what your car is worth puts you in a better position to negotiate. If the dealer offers you significantly less than your car’s value, demonstrating your knowledge may encourage them to make a fairer offer.
When negotiating, start slightly higher than your online quote. Don’t betray your minimum price to the dealer and stick to your guns.
The dealer may be limited in terms of the trade-in value they can offer. However, they might be able to throw in ‘sweeteners’, such as extra equipment or an extended warranty for your new car. Remember, if you’re not happy with their best offer, walk away.
When a car finance deal is thrown into the equation, things can get a little more complicated. The part-exchange value is crucial, as it influences the size of the deposit and the monthly payments. Make sure you fully understand the terms of the contract before committing. If you’re unsure about anything, don’t be afraid to ask for clarification.
How to get the most out of a part-exchange
Want to secure the best possible part-exchange deal? Here are a few pointers for increasing your car’s resale value:
- Get an MOT and service: If your car has recently been serviced and passed its MOT, this will reassure the dealer that it is in good working order.
- Valet your car: You may opt to clean your car at home, or spend a little more on a professional detailing service. Either way, if your car is clean and tidy, it will be far more appealing to dealerships and their customers.
- Invest in minor repairs: If any minor issues such as scratches, dents, worn paintwork, or windscreen damage are present, the dealer will probably reduce their valuation. Address them beforehand to secure a better price.
- Replace the tyres: If the tyres are worn, replace them.
- Replace the brake pads/brake discs: Replacing the brake pads and/or brake discs, if they are worn, will improve your car’s safety in an emergency – and boost its resale value.
- Collate your car documents: Make sure you have the right documents to sell your car. The V5C logbook is the most important of all.
Other considerations
- If your car is in reasonable condition but would benefit from a spring clean and a few minor fixes, go for it!
- However, consider that restoring an older, damaged car to good working order may end up costing more than any potential gains in value.
- If you’re considering a part-exchange deal, ask for a test drive in the car you plan to switch to. This is your opportunity to ensure you’re completely happy with the vehicle’s performance and handling before you commit.
Can I part-exchange my car for a cheaper one?
If you have an expensive car that’s costing you too much to run, you may be wondering whether you can use a part-exchange scheme to ‘downsize’ to a cheaper model and pocket the price difference.
This is theoretically possible. However, many car dealers will be reluctant to offer you a part-exchange deal where you’re paid in cash.
If you intend to trade your current motor for a cheaper one, you may have more success exploring other avenues. For instance, webuyanycar, can buy your old car at a fair price, with a guaranteed sale. So, you can raise the cash to cover your next purchase and any other expenses.
Here’s how it works:
- Get a free car valuation in under 30 seconds. Simply enter your reg number and mileage to get started.
- Book your appointment at any of our 500+ UK branches.
- Drive to your appointment. Happy to sell? We’ll help with paperwork, then send the money to your bank!
Can I part-exchange my car if it's damaged?
Yes, you can usually part-exchange a car that is damaged. Just bear in mind that you won’t be offered as much as you would for a car that’s in good working order. After all, the dealer will have to spend time and money either repairing the car or selling it on.
Can I part-exchange my car if it's on finance?
Yes, you should be able to part-exchange your car if it is subject to a Personal Contract Purchase (PCP) or Hire Purchase (HP) agreement. The outstanding finance can be paid off using the car’s trade-in value – and any money that’s left over can be put towards the cost of your next vehicle.
It’s important to note that if you’ve financed a car through a Personal Contract Hire (PCH) plan, you cannot usually part-exchange it. With a PCH deal, you don’t own the car, you’re merely renting it.
When is the best time to part-exchange?
When choosing the right time to part-exchange your motor, consider your car’s rate of depreciation (value loss over time). To track your car’s depreciation, use our free car valuation tool to get a baseline figure, then reevaluate your car periodically to observe how its value changes. This can help you decide on the best time to sell.
Different cars also peak in value at different times of the year. For instance, demand for convertibles is highest in spring and summer, whilst 4x4s, SUVs and MPVs are more sought after in winter.
How overall demand within the used car market compares to stock availability also plays a part. If demand exceeds supply, you can expect to get a better price for your motor.
Should I part-exchange my car or sell it?
If you part-exchange your car, you won’t need to list it on car advertising websites, or take time out of your schedule to meet with buyers. You should be able to part-exchange your old car and get the keys to your new one quickly.
However, you won’t usually receive the best possible price for your car with a part-exchange deal.
Other selling options
If you sell privately, there are no guarantees that you’ll sell your car quickly, or at all. However, your patience and perseverance could be rewarded with a better offer, if you manage to find the right buyer.
webuyanycar offers a guaranteed sale, meaning we can buy your car, regardless of its age or condition – and we can usually beat part-exchange quotes. The entire process takes less than an hour, from quote to sale. It all starts with getting a free car valuation.