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