How Do You Part-Exchange a Car?
Many drivers choose to sell their old vehicles so they can have extra money to put towards the new one they’re buying. However, this may take time, and there are a few things to think about, such as the resale price, finding the right buyer, and being ready for some negotiation.
If you’re planning on getting a new car but are still unsure of what to do with the old one, you may consider part-exchanging it. But how do you part-exchange a car? Here's everything you need to know 😀
How Does Part-Exchange Work?
When you part exchange a car, you are using your old car as part payment for the new one. So, if you buy the new car with cash, the old car’s value will be subtracted from the amount you need to pay. If you’re getting car finance, part-exchanging your old vehicle can sometimes cover the deposit for a new one. This can really help reduce your monthly payments.
What’s My Old Car Worth?
Your old car’s value will depend on industry data from companies monitoring the value of used vehicles. Some factors, like mileage, service history, and the vehicle’s specifications, can affect the car's value. 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.
Remember that the figure the valuation tools provide might be different to the one you are quoted. Your car will need to be assessed thoroughly before the dealership can determine how much it is worth. They will check its condition, and look for any damage like dents, scratches, and worn upholstery. An initial quote will then be provided, and you’ll be asked for additional details and relevant documentation. They can then give you a confirmed valuation.
How Do I Part-Exchange My Car?
These days, you can buy a car online and arrange everything over the Internet, even part-exchange deals. 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 it is as you described.
You may want to compare different 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.
Can I Part-Exchange a PCP Financed Car?
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.
Upgrading your PCP car early involves a straightforward process:
Step 1: Reach out to the lender and request a finance settlement amount, which indicates the remaining balance on your contract. Take note of this figure.
Step 2: Obtain an assessment of what your car’s worth. Use the lenders 'Sell Your Car' valuation tool for a swift and precise estimate. Jot down this value too.
Step 3: Calculate the difference between the valuation price of your car and the settlement figure. This indicates the equity in your vehicle. If the resulting number is positive, this equity can be utilised as part exchange when you decide to upgrade your car, or you can opt to receive it as a cash refund.
If the number is negative, indicating negative equity, you will need to pay this amount in addition to the cost of your next car. This might prompt you to consider holding on to your current car for a while longer.
Keep in mind that Carmoola doesn’t currently offer PCP car finance. We do, however, have a quick and easy early settlement calculator you can use.
Should I Sell or Part-Exchange My Old Car?
In most cases, you will get more money out of your old vehicle if you sell it yourself. If you have time to wait for the right buyer, then this can be 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 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 the car yourself. It will take some work and dedicated time, but you’ll most likely get a good price for it. However, 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 would be more convenient.
If you want to part-exchange your car, see to it that you compare the different deals available first. 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 the ones 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.
Get Affordable Car Finance with Carmoola
If you're looking for ways to make buying a car more budget-friendly, it's worth shopping around to find the best car finance deals. Want to get an estimate of the cost of financing a car with Carmoola? Try our car finance calculator!
Once you're ready to apply, simply download the Carmoola app and follow the simple steps provided. You'll know the result instantly and can even drive your new car home in no time!