Part Exchange Explained

This part exchange guide is here to help you understand what is meant by the term part exchange and how you can get the best possible price for your vehicle when part exchanging it.

Creditplus definition of Part exchange

Part exchanging your old car as part payment for your new car is a common process. Some dealers may pay you over the odds for your old car in order to sell you a new car. Furthermore, some dealers pay you a minimum cash fee for a part exchange vehicle.

All you need to know about part exchanging your vehicle

The part exchanging of vehicles is becoming more and more common with less people having the time to sell their cars privately. When you opt for a part exchange, you are bypassing all the potential time wasting buyers and the fees to advertise your car for sale privately, making it a very attractive option for many motorists.

Part exchanging your vehicle is rarely going to get you the best price for your car. This is because dealers want to be able to sell it on for a profit, so will usually only offer you trade value, or just above trade value. However, when you part exchange your car with a dealer, the value of your car goes towards the cost of your new car. This can offer you a new negotiating tool as you are providing the dealer with an asset (your old car) that can generate extra profit for them, as opposed to a cash deposit which will not generate any extra profit.

How to get the best possible price when you part exchange your vehicle

Below are just a few tips which will help ensure you get the best possible price for your vehicle.

  • Gather all relevant documentation.
  • When discussing a relevant part-exchange price for your vehicle, don't forget to mention what documentation you have as this will work in your favour.
  • If your car is suffering from any damage to the bodywork or the interior, consider looking around for a quote to have this repaired.
  • Ensuring that your car is clean and tidy both inside and out is important when part-exchanging it, as the dealer who is valuing your car may make the assumption that it has been well looked after, and be more inclined to offer you a better part exchange price as a result.
  • Bring all the keys, as they are worth money. If you have spares, make sure you bring them with you as this will only go in your favour.

Wikipedia definition of part exchange

A part-exchange or part exchange deal is a type of contract. In a part exchange, instead of one party to the contract paying money and the other party supplying goods/services, both parties supply goods/services, the first party supplying part money and part goods/services.

Whether a part exchange is a sale or a barter is a fine point of law. It depends on whether a monetary value is assigned to the non-money goods supplied. Several cases at law clarify this.

Source: Part exchange Wikipedia

Common Questions and Answers on Part Exchange:

Can I part exchange my vehicle?

This data has been put together with help from the Creditplus customer advisors.

For more questions on part-exchange please visit our dedicated part-exchange help section.

Find more answers in our Help and Advice section

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