Nowadays, there are several ways to swap your current motor for something more suitable. Part exchanging your car is one of the most popular methods because it’s quick, easy and accessible to almost every motorist. All you need to do is find a dealership and start haggling over the price.

However, it’s not as straightforward as picking a brand-new vehicle and driving away in it that very day. Before you are ready to sign on the dotted line, you need to understand the basics of the strategy. How does part exchange work on a car? Keep reading to find out more.

How does part exchange work on a car?

In its simplest form, the part-exchange process is hassle-free. The trick is to find a replacement motor that you want as an upgrade to your current vehicle. However, instead of selling your old car privately or sending it to the scrapyard, you can have it valued by the dealer. The quote you get is then subtracted from the price of the car you want to buy, making it cheaper and more affordable.

When it works well, part exchange is a suitable option for all parties. After all, you get a fantastic deal on a vehicle, and the dealer can add an item to their inventory that they can mark up in the future. Of course, they also get the car you buy off their hands. Everyone’s a winner!

What should you look out for?

The value of your vehicle

It sounds obvious, but it’s essential not to forget the value of your car. Some owners accept the first offer they receive without negotiating over the price. Even if you think the figure is high, you should shop around because there might be better offers on the table. However, you can’t do this without obtaining a ballpark number first, something you can do with an online valuation tool.

Once you know what quotes you should expect, you can ensure you don’t sell yourself or your car short during the part exchange process. A smart way to do this is to research how much like-for-like models sell for privately and at dealerships.

The aesthetics

The way your car looks will dictate how much people are willing to pay, which affects your bottom line. So, if there are scratches and scrapes, you should consider repairing them beforehand. Doing it yourself is a savvy option as hiring a professional will cost a fee. As far as the interior goes, a DIY valet will only cost you time.

Apart from the visual aesthetics, don’t forget to bring the relevant paperwork. Without the vehicle’s history, buyers will be less likely to make an offer as they won’t know if they can trust what they are purchasing.

Affordability

Just because a dealer will reduce the upfront price doesn’t mean your dream car will be affordable. We’ve answered the question of how part exchange works on a car but you still might not have the cash to pay for the car outright, leaving you in a pickle. Thankfully, you can get a car finance quote from My Car Credit and figure out how much you can pay in monthly instalments.

Typically, car finance options make vehicles much more affordable, giving you the ability to level up your lifestyle and finally drive around in style and comfort. To learn more about finance and how our services can help you, please don’t hesitate to contact us to speak with an advisor.

Rates from 6.9% APR. Representative APR 14.9%

Evolution Funding Ltd T/A My Car Credit

My Credit Rating

Excellent

  • You are a home owner
  • You have been on the electoral role for a long period of time
  • You have current credit arrangements and mortgage with no defaults
  • You have no CCJs, credit arrears or missed payments
  • You rarely apply for credit
  • You are employed or self-employed

Good

  • You are on the electoral role
  • You are a home owner or long standing tenant
  • You have a stable employment history
  • You have current credit arrangements with occasional missed payments
  • You have no CCJs

Fair

  • You are or have recently been on the electoral role
  • You may have recently changed address
  • You may have occasional missed payments
  • You may have an old CCJ
  • You may have regularly applied for credit

Poor

  • You may have had frequent changes in address
  • You may not be traceable on the voters roll
  • You may have exceeded credit card limits
  • You may have missed payments on current agreements
  • You may have had a CCJ in the past

Bad

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  • Your credit cards are over their limits
  • You have recent CCJs
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£

X monthly repayments of
£X

Typical rate

Loan amount

Total payable

X% APR*

£X

£X

*for illustration purposes only

No impact on your credit score

Representative Example

Borrowing £7,500 at a representative APR of 14.9%, annual interest rate (fixed) 14.85%, 47 monthly payments of £204.69 followed by 1 payment of £214.69 (incl. estimated £10 option to purchase fee), a deposit of £0.00, total cost of credit is £2,335.12, total amount payable is £9,835.12.

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Require more help?

Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!