How to Part Exchange Your Car

Part exchanging your car can be a convenient way of upgrading to a new vehicle. Instead of going through the hassle of selling your car privately, you can trade in your car to a dealership or car finance lender, and often lower the price of your new purchase.

In this guide, we take you through everything you need to know about part exchanging your car, including getting the best price for your car, whether you can part exchange a car on finance, and what you’ll need to be able to part exchange.

What does part exchange mean?

Part exchange is when you put the value of your current car towards paying for your next car. You’re essentially trading your car for another, although you will usually have to also pay a cash sum on top of that, as newer cars will typically be worth more.

Part exchanging your car can help to lower the cost of your next car and can also be a convenient way of getting rid of your current car when you buy a new one. Many car dealerships will be happy to part exchange your car when you buy a new vehicle with them.

Is it best to always part exchange when I buy a new car?

Part exchange has many benefits, but it’s not always the best solution – that will depend on your specific circumstances.

If you have the money ready to pay for the new car that you want, you might prefer to sell your current car privately. Selling your car privately will usually mean you can get a better price for it. Also, if you can go to a car dealership as a cash buyer, rather than using part exchange, you can often negotiate a better deal.

However, part exchange can be beneficial if you don’t have the full cash amount to buy the new car you want, as you will only have to pay the difference in value between your current car and new car. It can also be helpful if you’re looking to get car finance, as part exchanging your current vehicle will mean you’ll have lower monthly payments, compared to if you didn’t part exchange.

Can I part exchange my car if it has outstanding finance?

In short, yes, you can part exchange a car if it has outstanding finance. However, the process is a little more complicated than part exchanging a car that you own outright.

You’ll first need to get a settlement figure from your car finance lender. You can either choose to pay this off yourself, so you’ll then own the car, or you can have the car dealer pay for it. You’ll first have to check that the car dealership is prepared to part exchange a car that has outstanding finance. You’ll typically only be able to do this if your car is in positive equity, that is, it’s worth more than the remaining balance on your finance.

How do I find out the value of my car?

The value of your car will depend on many factors, including its age, mileage, make and model, general condition, as well as any extra features it has. The car dealership will give you a value of your car, but you can also do your own research to estimate how much it’s worth.

You can look at similar cars on the market to get an idea of price, as well as use online valuation tools. However, you should bear in mind that a trade in value will always be lower than the value of selling it privately.

What documents do I need to part exchange my car?

To part exchange your car, you will need:

• V5C logbook
• Service history book
• MOT certificate
• A form of ID, usually driving licence

Your ID will need to match the details on the V5C logbook. This will prove that the vehicle belongs to you, and you are able to trade it in. The service history book will show that the car has been maintained properly and so should be in a good condition, and the MOT certificate will prove that the car can be legally driven on the roads.

If your car is on finance with outstanding payments, you’ll also need to submit the car finance settlement letter.

Do I need to prepare my car for part exchange?

Before you take your car to be valued for part exchange, it can be beneficial to prepare the vehicle so it can be shown in the best condition. This can involve giving it a thorough clean inside and out. You can also check for scratches and dents, and make sure they’re fixed.

If there’s anything wrong with your car – such as dashboard lights that come on, or any mechanical issues – it can be best to get these repaired before you take it to be part exchanged. The dealership will typically always test drive the car, so it’s likely any problems will be picked up, which will affect how much your car is worth and will mean you’ll get a lower price.

Part exchange your car with GetCarFinanceHere

GetCarFinanceHere will offer you an excellent deal when you trade in your car to help you access an affordable car finance package. We aim to give you the best possible price for your vehicle, with a simple process to get you on the road in your new car as soon as possible.

If you’re interested in trading in your car, contact us today for a part exchange price on your current car and more information about our fantastic and affordable car finance packages. Complete your online application today.