Can I part exchange my vehicle?

Approved by the Car Finance Advisory Board

This section provides the most popular questions and answers relating to part exchanging your vehicle with reputable dealerships and Creditplus. It's a relatively common occurrence for customers to use their current car as a deposit (part exchange) on the vehicle they're looking to purchase, but can sometimes be confusing when car finance agreements are also involved.

What is a part exchange?

A part exchange is when you use your current vehicle as a deposit for a new vehicle. Most car dealerships will offer a part exchange arrangement, and here at Creditplus we're also able to offer this service as we have a highly trained and dedicated Vehicle Buying team who can help value your car.

When I take out car finance can I part exchange my vehicle?

Yes. If you've found your dream car from the Creditplus vehicle database or a reputable dealership, then you may have the opportunity to part exchange your current vehicle. We'll provide you with a price for your current car and then offset this amount against the total price of your new car. This in turn will reduce the cost of your overall car loan, as you're borrowing less.

A dealership has advised me that I can’t part exchange if my car finance is in negative equity. What does this mean?

A dealership may not be interested in part exchanging your car if it's in negative equity. If the amount owed on finance is higher than the trade valuation of the car for part exchange then this shortfall is referred to as negative equity because the total cost of the outstanding finance won't be covered by the sale of the car. If you fit the right criteria, it may be possible to take out a top-up car loan alongside your new car finance agreement, which pays off the outstanding finance. The calculation shown below demonstrates how negative equity works;

Trade valuation of car for part exchange: £5,000

Owed on finance: £6,500

Negative equity: £1,500

I have outstanding finance on my car, can I still part exchange it?

Should there be outstanding finance on the vehicle that you wish to part exchange, you'll need to ask your current finance provider for a settlement figure. We would clear any existing finance for you, although this will be dependent on the value of your vehicle and the amount of money left to clear on your finance agreement. Our Customer Advisors will be able to advise you further on this and work out the best solution for you.

I have a car on finance with a year to go, can I use this as a part exchange? Do you pay off the balance?

We can take your part exchange from you as deposit and if there's outstanding finance, as long as the vehicle isn’t in negative equity, we should be able to clear that too.

Do you offer a part exchange evaluation service?

The Customer Advisors here at Creditplus can provide you with a part exchange evaluation service, as well as a confirmed price for your current car.

In order to get the most accurate value for your part exchange, we'll ideally need to see your car to check its condition, mileage and any specifications made to the vehicle. We'll also need to see a copy of your current V5 document, your service history, your MOT (if applicable) and, if your car still has outstanding finance, a copy of your agreed settlement figure. You can also do this from home by sending us copies of the above documents.

If you can’t find the answer to your query on part exchanging your vehicle, please use the LiveChat service located to the right of this webpage.

Published: 16/05/2016
Last Updated:31/01/2019
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If you require further assistance, our team of Customer Advisors are here to help. We're open six days a week - you can view our opening hours here - and we're more than happy to answer your questions.