How does part-exchange work for cars?

What is car part-exchange?

Part-exchanging means trading in your current car as part-payment for another new or used vehicle. Some dealers even allow you to part-exchange multiple cars, making it easier to trade up to a more prestigious model.

The dealer will assess your car’s value and deduct it from the price of the vehicle you’re buying. You’ll then pay the remaining balance in cash, by card, or through a finance plan.

It’s important to be aware that while part-exchanging is quick and convenient, dealers usually offer less than your car’s full market value.

How does part-exchanging work? (step-by-step)

Step 1: Prepare your car

Want to maximise your car’s part-exchange value? Here are a few quick tips to help your motor look and perform at its best:

• Wash and clean your car inside and out.
• Investing in professional detailing can help to replicate that showroom sheen.
• Book a service or MOT test if either is due soon.
• Ensure there are no persistent dashboard warning lights.
• Ask a mechanic to inspect the vehicle for any mechanical, electrical, or safety issues.
• Fix any mechanical problems, if it’s cost effective to do so.
• Consider addressing cosmetic issues such as scuffs, scratches, and rust spots.
• A full service history will help to reassure the buyer you’ve taken good care of the car.
• If you have an EV, a battery State of Health (SoH) certificate can instil buyers with confidence about its condition and capacity.

Step 2: Gather documents and accessories

Before visiting any dealerships, make sure you have the right documents and accessories to part-exchange your car. Dealerships may request the following:

• V5C logbook.
• Service history documents.
• Both sets of keys.
• Locking wheel nut key.
• In-date settlement letter (if you’re part-exchanging a car on finance).
• Policy documents (if the car is still subject to the manufacturer’s warranty).
• Photo ID (passport/driving licence).
• Security tags for the locks, alarm system, or immobiliser.
• Proof of address (utility bill or bank statement).

Please note: If you want to retain a private number plate, you’ll need to take it off the car before part-exchanging or selling it. Otherwise, the right to use the private plate will transfer to the dealer at the point of sale.

Step 3: Compare quotes and check your car’s value

Obtain part-exchange quotes from several dealerships in your area. Quotes can vary significantly from one dealer to the next, so it’s worth taking the time to explore the market.

Before attending your chosen dealership, check your car’s value using webuyanycar’s free car valuation tool. This takes less than 30 seconds and will help you gauge whether you’re getting a good deal.

Step 4: Negotiate the price for the new car separately

When you visit the dealership, you could leverage a better deal by initially negotiating a price for the new car separately. If you don’t disclose that you’re interested in a part-exchange deal right away, you may be able to secure a better trade-in value later.

Step 5: Get a valuation at the dealership

The dealer will evaluate your car based on a variety of factors, including its make, model, trim, condition, age, mileage – and the current level of market demand.

There may be an opportunity to haggle a better deal. Just bear in mind that part-exchange values are often lower than valuations from other sources due to dealerships’ overheads and profit margins.

Step 6: Finalise the price

If you’re happy with the dealer’s quote, you can agree to put this value towards the price of the car you wish to purchase.

Remember, you’re under no obligation to commit. If you’re not happy with the trade-in value or the part-exchange deal, you can walk away.

Step 7: Sign the paperwork

Next, the dealer will guide you through the paperwork to complete the transaction. The agreed value will be put towards the purchase of your new car, and you’ll then pay the remaining cost upfront in cash, by credit card, or in instalments if you utilise a car finance plan.

Step 8: Exchange and completion

In an automotive context, ‘exchange’ refers to the point at which both you, the buyer and the dealer sign the part-exchange contract, confirming the terms of the deal.

‘Completion’ occurs once ownership of your old car is transferred to the dealer – and you take delivery of the new vehicle.

Step 9: Drive away

Congratulations, you can now drive your new car home! In most cases, the part-exchange process takes no more than a few hours.

Car part-exchange pros and cons vs other selling options

Part-exchange

Benefits:

• Changing your car is simplified with one transaction.
• Fast and convenient.
• Secure payment.

Drawbacks:

• Trade-in value may be lower than other options.
• You’re limited to the cars the dealer has in stock.
• Negotiation is limited.

Best for:

• Drivers looking to switch to a newer model immediately.

Webuyanycar

Benefits:

• Selling takes under an hour from quote to sale.
• Guaranteed sale.
• Valuation based on current market demand.
• Our prices usually beat part-exchange quotes.

Drawbacks:

• Resale value may sometimes be higher on the private market.

Best for:

• Drivers looking for a simple, hassle-free option for selling their car.

Selling privately

Benefits:

• High potential resale value if you find the right buyer.
• Full control over the sale.

Drawbacks:

• Can be time-consuming.
• You’ll have to manage advertising, viewings, and test drives.
• No guarantee you will find the right buyer or sell at all.

Best for:

• Experienced car sellers willing to invest time and effort to find the right buyer.

Scrapping your car

Benefits:

• A convenient option for disposing of an end-of-life vehicle.

Drawbacks:

• Very low resale value.
• You may lose reusable parts.
• Trim, upgrades, and features are not reflected in scrap value.

Best for:

• Safely disposing of a heavily damaged car.

Selling at auction

Benefits:

• Offers a chance to display your motor before an audience of potential buyers.
• Dealers, traders, and car enthusiasts often frequent auctions with the intention of buying.
• Fewer casual browsers than the private market.

Drawbacks:

• Seller and buyer fees will apply.
• Prices may be lower for cars that are not in demand.
• No guarantee your car will sell.

Best for:

• Drivers looking to sell a niche, valuable, or collectable car.

Frequently Asked Questions