How Does Part Exchanging a Car Work?

If you’re looking to buy a new car and have an old one to sell, then why not consider a part exchange. Purchasing a new car can be a big financial investment, so why wouldn’t you want to save on the upfront costs if you can?

There are many perks to part exchanging your car, but before you decide, it’s best to weigh up all of your options first. In this article dedicated to part exchanging your car, we explain what it means to part exchange your car, how part exchanging your car works, as well as looking at the pros and cons of vehicle part exchange. Read on to find out more…   

What does it mean to part exchange a car?

Part exchanging a car is a simple concept and pretty much does what it says on the tin; you get to trade in your existing car and the value of that vehicle will go towards the price of a new one.  

What is the car part exchange process?

While part exchanging a car may differ slightly between dealerships, the process in general is much the same. It’s important to know that a dealer will only be able to offer part exchange as an option if you are buying a car from them. 

To help you understand how part exchanging a car works, we highlight the step-by-step process:

1. First, find the car you wish to purchase
2. You will be asked to provide details of your current vehicle
3. Your existing car will be valued by the dealer
4. Your car will be inspected by trained technicians to confirm its condition and that it meets the dealership’s standards
5. You will be offered a part exchange value that you can either accept or decline
6. Should you wish to go ahead with the part exchange, contracts will be drawn up and in most cases, you will receive payment the very same day
7. The value of your part exchange will be taken off the showroom price of the new vehicle
8. All that’s left for you to do is drive home happy!

How does part exchanging a car on finance work?

If your current car is financed and you still have outstanding payments to make, then the part exchange process works slightly differently. Not all dealerships will accept a car on part exchange with outstanding finance, so it’s best to check with them first.

For dealers like ourselves who can accept a part exchange car on finance, there are a few things you need to do in order to get the wheels in motion. First things first, you will need to get in touch with the finance company to let them know your plans. Remember, the finance provider is the official owner of the vehicle, so you’ll require their permission first. 

Once you’ve spoken with the lender, they will provide you with a settlement figure which is the amount of money still owed on the car. You will need to settle this outstanding finance as per the terms of your contract. An early settlement fee may be required by the lender - always check the terms and conditions of your agreement first. 

How does a dealer value a car for part exchange?

When your part exchange your car through an authorised dealership, the dealer will rely on their industry knowledge and trade price information to determine the value of your vehicle. This is often referred to as the ‘trade-in value’.  

Is it better to part exchange or sell a car?

When it comes to choosing between part exchanging or selling your car, it really comes down to your own preferences. Opting to part exchange your car is only beneficial if you are looking to invest in a new car from the dealership you have in mind.

If not, then your best option is to sell your car instead of part exchanging. Many dealerships will happily buy your car, even if you’re not planning on purchasing a vehicle from them. 

Do you have to pay a deposit when you part exchange a car?

If you’re part exchanging a car, it is very unlikely that you’ll need to pay a deposit first. As we explained above, the value of your car will in theory be used as a deposit on your new vehicle. If you’re planning on financing your new car, then it may be that your part exchange will cover the cost of the initial upfront deposit. 

What do you need to provide when part exchanging a car?

When it comes to getting the best price for your existing car for part exchange, you’ll need to provide some essential documents that come with the vehicle. These include:

• V5C logbook
• MOT certificate
• Vehicle manual 
• Service book

Also bear in mind that you will be asked to provide the spare keys to the car (assuming you still have them!) and any items that came with the car when you originally purchased it (spare wheel, tool set, etc). 

Not being able to provide the key documentation asked for may result in a lower price being offered for the car, or the dealership not accepting the vehicle for part exchange at all.  

Car part exchange pros and cons

Before you make a final decision to part exchange your car, you should first weigh up the pros and cons of doing so:

Part exchange your car at Wilsons Epsom

If part exchanging your car sounds like the perfect option for you, then we’ll be only too happy to help! At our Wilsons Epsom dealership in Surrey, you can take advantage of our part exchange service. 

As the largest family-run new and used car supermarket in the South of England, you are in very good hands. We’ve been looking after motorists for over 100 years, offering an extensive choice of cars at unbeatable prices. 

If you have a car for part exchange, you can start the process straightaway over on our Part Exchange page. Here you’ll find our FREE vehicle valuation tool where you can enter your vehicle’s details for an initial valuation.