Part exchange vs selling your car: which is better?

Not sure whether to part exchange or sell your car? This handy guide helps you weigh up your options.

Deciding whether to part exchange or sell your car depends on what matters most to you. Part exchange is often quicker and easier, letting you trade your car directly with a dealer. Meanwhile, selling privately can take more time but may offer a higher price.

This guide will help you compare both options and choose the best route for your situation.

Remember, you can part exchange and sell your car through Carwow. We’re here to help you through every step of your car-changing journey.

What is part exchange?

A part exchange is when you trade in your current car to a dealer and use its value towards the cost of your next one. Instead of selling your car separately, the dealer buys it from you as part of the same transaction. It’s a straightforward process where your existing car is used as part payment when you buy another vehicle from a dealership.

Pros of part exchanging your car

Part exchange is a simple and convenient way to upgrade your car. Here are five advantages of part exchange:

1. Everything is typically completed in one visit to a dealership, saving time compared to selling privately.
2. No need to advertise your car, arrange viewings, or negotiate with multiple buyers.
3. You deal directly with a reputable dealer, reducing the risk of scams or payment issues.
4. Dealers can often help settle outstanding finance and handle the paperwork for you.
5. The value of your current car is deducted straight from your next buy, reducing what you need to pay upfront.

Cons of part exchanging your car

Part exchange can be convenient, but it’s not always the best option financially or in terms of choice. Here are five key drawbacks to consider:

1. Dealers often offer less than you might get from a private sale or car buying service, as they need to resell the vehicle and cover refurbishment costs.
2. Because you’re agreeing a trade-in and buying a new car at the same time, it can be harder to secure the best overall deal.
3. You’re usually limited to the dealer’s current stock, which may restrict your options for your next car.
4. The value of your part exchange may be built into the overall deal, making it harder to see exactly what your old car is worth.
5. If your car is older, high mileage, or in poor condition, some dealers may offer a very low price or refuse the part exchange altogether.

What does it mean to sell your car?

Selling your car means handing ownership of your vehicle over to someone else – usually a private buyer or a dealership – in return for money.

It typically involves a few key steps: getting your car ready to sell, deciding on a fair price, advertising it, and then completing the legal paperwork once you’ve found a buyer. In the UK, this includes updating the V5C logbook and letting the DVLA know you’re no longer the owner.

Once everything is completed, the buyer becomes the new legal owner of the car, and you receive payment.

Pros of selling your car

Selling your car can be a smart option if you want more control over the process and potentially a better return. Here are some of the key benefits:

1. Frees up money you can use as a deposit for your next car.
2. It stops ongoing costs such as insurance, tax, and maintenance once you no longer need the car.
3. Selling sooner can help you get a better price before the car loses more value.
4. Lets you choose your next car from any seller or dealership, not just where you part exchange.
5. You set your asking price and negotiate directly with buyers, meaning you often get more money for your car

Cons of selling your car

Selling your car, especially privately, can sometimes get you a better price, but it also comes with a number of drawbacks to consider:

1. You’ll need to clean and prepare the car, take photos, write listings, and advertise on multiple platforms.
2. Expect calls, messages, and emails from buyers, not all of whom will be serious.
3. You may need to meet strangers for viewings and test drives, which can carry security risks.
4. Many buyers will try to negotiate the price down, which can be time-consuming and frustrating.
5. You’ll need to handle all the legal documents, ownership transfer, and ensure everything is correctly completed.

Is it better to part exchange or sell your car?

It depends on what matters most to you. Part exchange is usually quicker and more convenient, letting you trade your car in at a dealership and drive away with minimal hassle. Selling privately or through a buying service can often get you more money, but it takes more time and effort and involves dealing with buyers. In short, part exchange suits speed and simplicity, while selling is more likely to give you a higher price.

Part exchange vs selling your car FAQs

Do you get more for part exchange or selling?

Selling your car privately or through a car buying service will usually get you more money than part exchange. On average, you could earn around £400 more compared to part exchange, according to market data specialist UKVD.

What is the hardest month to sell a car?

December is generally the hardest month to sell a car, with October and November also being slower periods. This is mainly because buyers are focused on holiday spending and budgeting towards the end of the year, which often means fewer people are looking to buy a car.

Car change? Carwow!

Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.

Click here to follow us on WhatsApp, where you can keep up-to-date with all the latest news, reviews, advice guides and videos.