Part-exchanging your car means purchasing a new car and using your existing car to trade in along with cash. The biggest issue most drivers face when part-exchanging is the concern about whether they are getting a fair price. In this guide we hope to cover off all the important points you need to know when part-exchanging your car.
Most dealerships, including ours, provide free vehicle valuation tools. Drivers need only add their registration details and the tool will do the rest. This data is based on car depreciation data for every make and model of car in existence.
However, there are a number of factors that could affect the overall value of your car in a part-exchange:
Condition - if the car is in poor condition e.g. scratches, dents, heavy wear and tear, then this may require the buyer to put in extra work to get the car back to an acceptable level. Therefore, the value may be knocked down to account for this.
Colour - some colours sell better than others, so the value of the car could be based on the popularity of your car's colour. White is currently the most popular colour of car so it is therefore easier to sell. However, if your car is bright pink, then the buyer may struggle to shift it from their sales forecourt.
MOT - if your car has recently had a MOT this could work to your advantage. The MOT guarantees the reliability of the car, so a car that has just been tested is less likely to have obvious and damaging faults.
Service History - cars that sold with a fully documented service history allow buyers more peace of mind that the car has been properly maintained.
Number of owners - typically, the more owners a vehicle has had, the less valuable it is. This works on the basis that there's been different drivers - all with different journey types, cleanliness, approach to vehicle maintenance, so the car is likely to be less reliable over time.
Accessories - inclusion of on-board accessories such as reversing camera, satellite navigation, leather seats, panoramic sunroofs and sound systems can see a high valuation as all are desirable features for dealerships looking to sell the car as a used vehicle.
It is preferable to have all the right documents and extras at hand for a proposed part-exchange. Making sure you have access to the below will avoid any problems further down the line and could help increase your vehicle's value:
• Logbook (V5C)
• Service history (full or partial)
• Spare keys
• MOT certificates
• Manual
• Alloy wheel unlocking keys/tool
Do your research and find several valuations for your vehicle from a variety of sources e.g. online, dealerships, research data. Set yourself a clear target price for the car and then focus on what the cost to change to your new vehicle is going to be.
If your new car is £20,000 and you're offered £10,000 for your current car then you have £10,000 pay for the new vehicle. However, if someone offers you £9,000 for your current car but the new car cost is £19,000 then this will work out with you paying less overall for the vehicle. It is because of this that you need to look at the whole part-exchange deal before making a decision.
If your current car still has finance on the car e.g. you've not yet paid the full value of the car, don't be put off. Many dealerships, including ourselves, will sort out existing finance to make the transition as simple as possible.
You may also find because finance deals like PCP work on a monthly cost based on estimated mileage, that you actually get some money back. If your PCP arrangement is for 30,000 miles but you've only done 25,000, then technically you may have overpaid and the vehicle has more value in it that previously estimated at the start of the arrangement. This extra cash can be used to reduce your new car's cost.
