If you’re looking to buy a new car then you probably have an old one you’re looking to get rid of. There are plenty of options available to you, but the simplest way is to part exchange it with the dealer you’re buying your new car from.
What is part exchange?
Part exchanging is exactly what it sounds like – you exchange your old car for part of the price of your new one. Generally dealers are happy to take your old car because they can often sell it for a profit either on their forecourt or, if it is a little older, by selling it on to a used dealer or car auction.
It’s very easy to do if you own your current car outright, but if you’re currently on a personal contract plan then it can get a little more complicated. If you have come to the end of your PCP contract, there may well be some equity left in the car’s value – i.e. when the car’s worth more than the guaranteed future value. It’s this amount that’s yours to put towards your new car, after you’ve paid off the remainder of your PCP agreement.
Why part exchange?
Part exchanging your car is quite simply the easiest and quickest way to get rid of your old car. Our guide to selling your old car has a list of alternative methods but, in general, part exchange is what most new car buyers do.
The only problem is that part exchange values are often lower than any other means of getting rid of your car, so you’re paying for the convenience. Many car dealers will offer more off the price of a new car but, in reality, offer a lower part exchange value so that they aren’t really losing any money. There are things you can do, however, to maximise your old car’s value.
The best strategy is to go in armed with the knowledge of your car’s value – our guide to valuing your car can help you, but you can also take a look on the dealer’s forecourt or website beforehand to see if they’re selling anything similar to yours, and for how much. Remember, to get the best valuation for your old car, it really needs to look its best, so get it washed, hoover out the insides and make sure the kids haven’t left any empty crisp packets under the seats.
How does it work at carwow?
At carwow we only work with the best dealers, all of whom will aim to give you a fair price for your old car. The great thing about using our service is that the discount you negotiate through us is irrespective of the value of your old car, so won’t offer a lesser discount in return for a higher part exchange valuation.
While almost all do, make sure you check that the dealer accepts part exchange vehicles and, if you’re at the end of your current finance deal, remember you have to pay the guaranteed final value of the car off before you can use it in part exchange.
Save money on your ideal new car
Now you know how to part exchange your old car, why not check out the fantastic carwow deals on a new vehicle? Put your ideal new car in our car configurator to find a great deal from official UK dealerships. If you’re not sure which one is for you, our car chooser and deals pages could help you make a decision.