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Car Finance Part Exchange Calculator

Are you currently financing your car and starting to feel the urge for something new? You know, that itch that you can’t seem to ignore - the increasingly obvious desire for your next car. Maybe this is making you feel stressed, or confused because you’re already tied to a car finance agreement. You might be wondering "can I part exchange my car with outstanding finance?".Are you even allowed to undo your loan? So many questions! 😱 Let’s find out all about car finance and part exchange. 👍

Can I Part Exchange my Financed Car?

First things first: it is totally possible to exchange your car with outstanding finance. Phew, that’s a relief! 😅 Though it’s best to check directly with your finance provider, most lenders will let you part exchange your financed car. However, it will be easier if:

  • You already legally own the car, if you’ve taken out a personal loan from a bank for example, or if you’re in a Hire Purchase (HP) agreement with your lender. 
  • You’re approaching the end of a Personal Contract Purchase (PCP) car finance agreement and the value of your part exchange is higher than the amount of the balloon payment, which is the optional final payment you’ll have to pay at the end. 
Can You Trade a PCP Car In Early?

Buying a car through Personal Contract Purchase (PCP) finance means that you’re borrowing money to cover the depreciation of your vehicle and not its purchase price. Okay, so how does that affect trading in your PCP-financed car? 

If you’re lucky, the current value of your car might be sufficient to cover the amount left on your finance contract. If it isn’t, you’ll have to compensate for the difference. That means you’ll have to pay what’s left, and then you’ll be completely free of your finance agreement. You’ll be able to enter into another contract and finance your next dream car!

Car Finance Part Exchange Calculator

So, you’ve now found out that you can part-exchange your financed car and trade it in for a new one. But how can you figure out how much you’re going to get? By using a car finance part exchange calculator! Here’s a list of our favourite car finance part exchange calculators to help you assess how much you’ll be able to get for your car. 

  1. We Buy Any Car
  2. Stone Acre
  3. Motor Point

Should I Part Exchange a Car on Finance?

There are loads of reasons which could make it a good idea to part exchange your financed car. It all really comes down to whether or not you want a new car. It’s truly important that your car finance decisions reflect your realistic needs, so just go with the flow! If you’re fed up with your current car, or if your needs have evolved, and if a part exchange is accessible to you, go for it! It could also be because:

How to Part-Exchange a Car on Finance

The first thing you need to do if you want to part exchange your financed car is to know its value, as well as how much you have left to pay on your agreement. For the former, you can use an online car valuation tool, and for the latter, you’ll have to ask your finance provider for the settlement amount of your finance agreement. The best outcome is for your car to be worth more than is left for you to pay, which is called positive equity. You’ll be able to use the rest of your money towards a deposit on your next car, which can significantly lower your monthly payments

By the way, here at Carmoola, you’ll have access to your exact settlement figure at all times on our app. That way, you’ll always know where you stand and you’ll be able to plan accordingly! No more being put on hold by slow lenders in order to find out how much you have left to pay - it’s all within your reach. 

Then, you’ll have to agree to a part-exchange with your next car’s dealership or marketplace, who will handle all the paperwork like changing the ownership with the DVLA. You’ll have to give them all of the important information about your car like the V5C (also sometimes called a logbook), the MOT and service documents as well as the car’s manual. 

Tips for Part-Exchanging a Car on Finance

Calculate and Then Compare 

Establishing your current car’s true value is a really important aspect of part exchange. Though you’ll be able to get numbers and figures from car finance part exchange calculators, we always recommend you also compare with similar sales for your model of car. Make sure you browse around and do your research, it could save you from going for a really low deal and missing out on a lot of money! 

Give Your Car a Good Clean and Update

You know those tiny scratches that you’ve been putting off fixing up? Those stains on your seats that really need a clean? Make sure you take care of all that before you show your car to a dealership. Give it a really deep clean and get it sparkling and shining - it will make your car that much more desirable to dealers. 

Get All the Documents Together

You’ll need to hand over all your finance documents and car paperwork when you part exchange your car. You can prepare for that by gathering all the documents like MOT, log book, service history, finance agreement… It will make the process faster for both you and your dealership. 

What to Do if You Can’t Part Exchange a Car on Finance

Return Your Car When Your Loan Term Is Over

If you can’t part exchange your car, you can bring the vehicle back to the dealership when your finance term is up, or whenever you’ve paid over half of the finance amount. Do take into consideration the fact that you might have to pay extra fees though. 

Wait Until You Have Positive Equity

The main reason that people can’t part exchange their financed car is if they owe more on their finance than the amount of their car’s value. If this is your case then you might want to consider holding off on part exchanging until you’ve reached positive equity. 

The Bottom Line

So hopefully this blog answers all your questions such as  "can I part exchange my car with outstanding finance?" and you have all the information about how to prepare to part exchange a car on finance.

Though car finance may feel like a big responsibility and a lot of commitment, it actually leaves you with a lot of options. Depending on what type of car finance you went for, you’ll have choices when it comes to buying a new car within the term of your loan. The bottom line is to take your time when researching your current car’s value, so you’re prepared to accept or decline part-exchange offers. It’s always good to know your worth, right? 😏

Here at Carmoola, we love helping people get their dream cars! Feel free to explore through our blog which has tons of resources for you, and take a look at how our car finance app works. We’d be honoured to help you get your next car! 🚘

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