If you’re planning on getting a new car but still unsure of what to do with the old one you have, you may consider part-exchanging it. Many car owners may choose to re-sell their old vehicles so they can have extra money to pay for the new ones they’re buying. However, this may take time and there are a number of things to think about such as the resale price, finding the right buyer, and being ready for some haggling.
But what if you could part-exchange your old car at the dealership where you’re getting your new vehicle? That sounds a lot more convenient, right? If you’ll buy the new car with cash, then the old car’s value will be subtracted from the amount you need to pay. If you’re getting car finance, then part-exchanging your old vehicle can sometimes cover the deposit for the new one. This helps a great deal in reducing your monthly payments.
What’s My Old Car Worth?
Your old car’s value would depend on industry data from companies monitoring the value of used vehicles. Some of the factors that affect the value of your car include its mileage, service history, as well as its specifications. You can get a rough estimate of the value of the car through online car valuation tools found on the websites of many car dealerships.
Of course, the final figure might be different because your car will be assessed thoroughly. The dealership will check its condition, any damage, dents, scratches, upholstery, and others. They will then give you an initial quote and then they will ask you for any additional details they need to give you the confirmed valuation.
How Does Part-exchange Work?
Some dealerships offer to pick up your old car after delivering the new one. This is convenient because you don’t have to take your car to the dealership and you don’t have to worry about not having a car for some time until the new one becomes available. After picking up your car, the dealership will inspect it to make sure that the car is as described.
You may opt to compare different part-exchange deals from other car dealerships using their valuation tools online. When you do this, make sure that you use confirmed prices that are based on the specific condition of your vehicle. Do your best to describe your car as accurately as possible so you can get a proper valuation. Some dealerships may also ask you to take your vehicle to them so that it can be inspected.
How to Part-exchange a Financed Car
If you have a PCP car finance deal, you have the option to return the vehicle once your contract has ended. You don’t have to pay for anything else but you have to make sure that you didn’t exceed the mileage limit and that the car is still in good condition. You may also buy the car by paying the optional final payment. If you’re thinking of getting a new car, then the third option of part-exchanging your vehicle is also available.
When you part-exchange a financed car, you can get a different car on a new PCP deal. This is a good option if you’ve taken good care of your previous vehicle because it would be worth more than the balloon payment or optional final payment. If this is the case for you then you can use the additional value for the deposit of a new car.
So, let’s say you want to get a new car finance contract and at the same time, part-exchange your old car, the car finance company will take the old vehicle and use the value of the car for the optional final payment. They will then calculate the difference between the final payment and the deposit you need for the new car finance contract. If you’ve taken good care of the car, it’s possible you might not need to pay a deposit at all!
Should I Sell or Part-Exchange My Old Car?
In most cases, you will actually get more money out of your old vehicle if you’ll sell it yourself. If you have time to wait for the right buyer, then this is the better option. However, if you want to enjoy the convenience of simply turning over your old car to the dealership, then part-exchanging your old vehicle is still a good choice.
Whether you should sell or part-exchange your old vehicle depends on your needs. For example, if you really want to get the most value from your old car, then it’s worthwhile to put in the effort to sell your car. It will take some work and dedicated time but you’ll get a good price from it. But if you’re in a hurry to get a new car or just don’t want to deal with the hassle of selling your old vehicle, a part-exchange deal offers a lot of convenience and ease.
If you want to part-exchange your car, see to it that you compare some of the deals first before choosing a dealership. This can be done easily nowadays because you can simply use the dealerships’ valuation tools on their websites. From there, you can make a shortlist of dealerships with the best offers. This step will help you get the most out of your old car while not taking up so much of your time.