Last updated November 10th, 2023
If you want to sell your car and get behind the wheel of a newer model quickly, part-exchanging it could be a viable option. By part-exchanging your motor, you can benefit from a quick sale and subsidise some of the cost of your next car.
In this guide, we’ll explain how part-exchanging works. We’ll also cover the pros and cons of utilising this selling method. Finally, we’ll outline the process to follow when selling your car through a part-exchange scheme.
A part-exchange deal allows you to trade in your car at a dealership – and put its value towards the cost of another vehicle.
Although you are selling your car to a dealership, the proceeds of the sale won’t be sent to your bank account. Instead, you’ll be able to put this sum towards the cost of another vehicle at the same dealership.
Both you and the car dealer will have to agree on a trade-in value for your vehicle before entering into a part-exchange agreement. (The dealer will calculate the car’s value based on a variety of factors, such as its make, model, condition, mileage and trim level.)
Although there are several benefits to part-exchanging your motor, you should also be mindful of the potential drawbacks:
In a part-exchange agreement, the value of your current car is used to subsidise the cost of a new one. (The old vehicle is used in place of cash as part payment for a newer model.)
Once you have decided which car in the showroom you would like to buy, you can offer your current vehicle to the dealer for part-exchange. The dealer will subtract the value of your current car from the price of the model you intend to buy. This allows you to sell your old vehicle and secure a new one at a discounted price in one straightforward deal.
For example, imagine you want to buy a vehicle priced at £10,000. You offer to part-exchange your current car, which the dealership values at £3,000. If you agree to this deal, the dealership will take your current car away and you will only need to pay the remaining £7,000 for the vehicle you want.
‘Exchange and completion’ refers to the exchange of a contract committing both you and the dealer to a part-exchange agreement. Once you have signed this document, you are locked into the terms of the part-exchange agreement until you have paid for your new vehicle in full.
(This agreement will include both the final agreed part-exchange value for your old car - and the payment plan for the new vehicle.)
When you take your car to a dealership to part-exchange it, you’ll need to bring the following documents with you:
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In addition to these documents, you’ll also need to bring both sets of keys and any extras, such as the locking wheel nut.
You do not usually need to pay a deposit when purchasing a vehicle through part-exchange. (Your old vehicle will serve as the ‘deposit’ on your new car.)
However, if you are taking out a finance agreement to pay for a new vehicle - and your old motor’s trade-in value is less than the deposit for the new one, you may be asked to pay the difference.
When it comes choosing how to sell your car, you should consider what works best for you. Part-exchanging typically involves less hassle than selling privately, but there are also potential pitfalls to watch out for.
If you’re looking for a simple and convenient way to sell your car at a great price, you might also consider using a car buying service such as webuyanycar.
Simply enter your reg number into our free car valuation tool to find out how much you could get for your car in less than 30 seconds!
You can make an appointment at any of our 500+ UK branches at a convenient date and time. Our helpful buyers will be on hand to assist with the paperwork and set up your payment.
The entire selling process usually takes less than an hour. What’s more, if you choose our new Immediate Payment option, you can get the money in your bank in 15 minutes or less.
Unhappy with an existing part-exchange valuation? Our buyers could offer you a better deal, giving you more cash to put towards your next car.