What is a Part Exchange?
Have you been looking to get a car valuation on a new purchase, only to be offered a part exchange plan? Many people utilise part exchanges to help purchase their new vehicle, but it’s not always entirely clear what this means. After all, finding the right buying option for your vehicle can be a little tricky.
What Does Part Exchange for Cars Mean?
Part exchange for cars is a relatively simple concept; however, if you’ve never part exchanged a vehicle before, it’s easy to feel a little lost. Luckily, though, part exchange is a very handy tool, so many people use it for their vehicle purchases.
Part exchange is a tool that you can use to purchase a new vehicle. During part exchange processes, you trade in your existing vehicle in exchange for part of the purchase fee of a second vehicle. This allows you to upgrade your vehicle without necessarily having to pay the full value outright for the new vehicle. Our vehicle check provides a 5 band valuation including the part exchange value.
How Does Part Exchange Impact my New Car Valuation?
Part exchange will not have any impact on your new car valuation. As such, in effect, you will still be paying the same price. However, trading in your old vehicle offers a discount on the listed price for your new car upgrade. As such, although the car valuation remains the same, you’ll pay a lower price than normal.
With that being said, it’s worth noting that you may not necessarily receive the full car valuation as a discount when you use part exchange services. So, make sure you check your car’s valuation before getting started to ensure you’re getting a fair price.
Can I Use Part Exchange for Any Vehicle Purchase?
Part exchange is a specific service offered by car dealers; if you’re looking to purchase a car from a private seller, you won’t be able to use part exchange services.
It is also worth noting here that not all dealers will offer this service. As such, if you would like to use part exchange to lower the car valuation and price, check that your chosen car dealer can do so. Moreover, part exchange may depend on the current standard of your vehicle. For example, if your vehicle is incredibly old or a write-off, it’s unlikely for a dealer to accept it for part exchange, or they may offer a limited price.
That’s not to say you can’t replicate a part exchange with a private seller by selling your car privately first and then using the funds to pay off part of the new car’s price. It’s important to note if a car is written off it will affect its value.
Final Thoughts
Purchasing a new vehicle isn’t cheap; indeed, this can be a pretty significant investment. A part exchange could help you secure your next car purchase, but it’s important to take into consideration the market value and the past exchange value. This will help ensure you are getting a good deal.