If you’re upgrading to a new car then you may want to consider part-exchanging your existing vehicle. An ideal way to cut the cost of your next motor, choosing to part-exchange also saves you the stress of selling your vehicle privately.
In this article, we explain in more detail how part-exchange works, if you can part-exchange a car with problems, what documentation you need to part-exchange your vehicle, and much more…
How does part-exchange work?
Part-exchange is a way of ‘trading in’ your current car for a new one. Not just restricted to brand new vehicles, you can also trade your car in for a nearly new or used one too. By choosing to part-exchange your car, you are essentially using the value of the vehicle as part-payment towards a new one.
The dealership will value your car and agree a price to buy it off you, but rather than paying you cash or transfer into your bank account, the dealer will take its value off the price of your new vehicle. For example; if the car you wish to purchase costs £12,000 and your current vehicle is worth £4,000, then you’ll only pay the remaining £8,000.
How is your car valued for part-exchange?
To help determine how much your car is worth, a dealer will use a vehicle valuation guide (also known as the ‘book price’) while taking into account the current market. The make, model, mileage, overall condition and any upgrades included will all affect the overall price offered for your car and will depend on how much it has depreciated.
Many dealers now offer an online valuation service so you can get an estimation of how much your car is worth before picking up the phone. All you’ll need to provide is your vehicle’s registration number and current mileage for an initial quotation.
Here at Windmill Motors, we use a number of methods to value your vehicle; from Glass’s vehicle valuation guide to current market trends and a physical inspection. Our part-exchange offers are valid for seven days so you’ll have plenty of time to make an informed decision.
Can you part-exchange a car with problems?
A pre-loved car can sometimes come with problems, so it’s possible to part-exchange your current vehicle even if it does need a bit of work. However, it’s worth bearing in mind that the price you’re offered for your car on part-exchange very much depends on the condition and quality of the vehicle - if it needs fixing, then the dealer will offer you less.
Because of this, we’d always recommend you find out how much your car would be worth in perfect condition, then weigh this value up against the cost to repair it. It’s the same principle with a service and MOT - it’s not essential these are up-to-date, but you will be penalised in what you’re offered by the dealer for part-exchange if they’re not.
Should you clean a car before part-exchanging?
To make sure your car is in the best condition for part-exchange, it’s advised that you clean the vehicle inside and out too. This will help guarantee the top price from the dealer for that particular make and model, as it helps make it more attractive for the dealer to resell.
What documents do you need to part-exchange a car?
When you part-exchange your car, there are a number of documents you’ll need to handover to the dealer as part of the process - as well as the keys and any spares you have too. To help, here’s a list of documents you’ll need to dig out:
- V5 logbook
- A valid MOT certificate
- Service history book
- Model/owners manual
If you don’t have any of these documents above to hand, then make sure you’re upfront with the dealer before you agree to part-exchange your car.
Can you part-exchange a car with outstanding finance?
If you have outstanding finance on your current car, then it is still possible to part-exchange the vehicle. Whether you entered into a Personal Contract Purchase (PCP) or Hire Purchase (HP) finance agreement, make sure you check with the dealer before getting a part-exchange quote.
Here at Windmill Motors, you can take out finance on your new car when you part-exchange your existing vehicle. We even offer a cashback incentive scheme when you part-exchange a car with us, providing you take advantage of our flexible finance options.
Is it better to sell or part-exchange your car?
When asking the question if it’s better to sell or part-exchange your car, then the answer really comes down to your personal circumstances and what’s best for you.
Part-exchanging your car is a convenient and stress-free way of selling your car to a dealer in exchange for a newer model. You will of course only be able to use this option if you choose a car in stock from that particular dealer.
Selling your car privately might mean you get a bit more money for your vehicle, but consider the cost of the time and hassle it takes to make a sale.
Part-exchange your car at Windmill Motors
Enjoy the hassle free way to upgrade your car or van here at Windmill Motors. We proudly offer a part-exchange service to customers in Bourne, Lincolnshire and beyond! Get started by using our free online part-exchange valuation tool and explore our vast variety of nearly new and used vehicles in stock today.