How does part exchange work on a used car
How Does Part Exchange Work on a Car?
How Does Part Exchange Work on a Used Car?
When you visit a car dealership, you'll often be asked if you're interested in part exchange, which means using your old car's value as part of the payment for a new car.
If you agree to this option, the dealer will start with a part exchange valuation of your current vehicle and effectively purchase it from you at an agreed price. However, instead of paying you cash, you can use that amount against the car you are looking to buy.
Part exchange is usually a great option to save yourself the time and effort that implies selling your old vehicle to an individual, especially if you plan to use that money to upgrade to a newer model.
Let's look more in-depth at how part exchange deals work to help you decide if it is a suitable option in your case.
How to Part Exchange Your Car
Part exchanging your car will differ depending on the dealership you use, so our first advice is to ask the dealer to run you through their process in detail. Regardless of the dealership, you should expect to be able to discuss your valuation, ask for as much clarification as needed, and never feel pressured to accept a price.
With DCC, we work to make the part exchange process as straightforward and transparent as possible. There are three simple steps:
- Enter your registration in our part exchange valuation form and request a valuation for your old car. This part of the process is entirely free, and you have no obligation to buy from us.
- One of our car valuation experts will contact you with an offer and will be there to answer all your questions.
- Once accepted or agreed, you can drive your car in to collect your new one in person or benefit from our delivery service.
How Much is My Car Worth in Part Exchange?
The valuation of your old car will depend on a wide range of factors like its make, model, age, mileage, condition, colour, and modifications. Additionally, dealerships will look at other things such as service history, mileage, and usage.
All cars depreciate over time, which is why you usually may find a part exchange price significantly different from when selling your car privately. However, it's essential to consider that part exchange comes with the added convenience of dropping off your old car, picking up your new one, and benefitting from the immediate discounted price, saving you the hassle of selling your old car first.
Should I Part Exchange my Car?
No one can decide this for you. You need to weigh the pros and cons and see what makes the most financial and practical sense for your circumstances.
Consider whether you have full ownership of your car, whether it is on finance, and whether you are in positive or negative equity. If you are in negative equity, part-exchanging may not be the best option, as you won't be able to put any value towards the car you want to acquire.
You can learn more about part exchange in our article Part Exchange Frequently Asked Questions.
Pros of Part Exchanging Your Car
Part exchange is a convenient process and great for saving time and money. You don't have to deal with the practical issue of finding somewhere to keep your old car if it hasn't sold before your new car purchase. Simply drop off your old car, pick up your new one, and the deal is done.
Another advantage of part exchange is the immediate cut in the price you have to pay for a newer vehicle. This advantage is especially notorious if you're downsizing to a smaller or cheaper vehicle for which you could end up paying an insignificant difference.
Cons of Part Exchanging Your Car
Although part exchange tends to be an easy and quick process, you may find selling privately offers a better value for your car. It's rare for the most convenient and quick option to be necessarily the most profitable so keep this in mind when considering part exchange valuations.
So if you have the patience and experience to put your car for sale in the private market and get a better deal, and you feel that it is a worthwhile time investment for you, then you should definitely give it a shot.
Part Exchanging Your Car with DCC
At DCC, we won't haggle or put pressure on your part exchange. If you want to trade your old vehicle in Southampton and Fareham, we're here to make the process fair, simple, and transparent.
Browse our stock with hundreds of used cars available to buy and apply for a part exchange valuation so our team can give you an offer. If you want to discuss our part exchange process more in detail or just sell your car to DCC, don't hesitate to contact us!