Part exchange

Definition

A part-exchange is when you trade in your current car and put the proceeds towards the purchase of your new vehicle.

It provides a quick and convenient alternative to a private sale, and by selling your old car faster, you can get behind the wheel of your new car sooner.

How does a part-exchange work?

When you part-exchange your car we’ll help ensure that everything runs smoothly from start to finish.

At Creditplus your dedicated advisor will help get you a fair valuation from the dealership based on the vehicle’s age, mileage and condition (good, fair or bad).

If you’re happy with the quote, this can be used as a Deposit towards your finance agreement.

Paying a larger deposit is an effective way to reduce your Monthly Repayments, and lower the cost of interest.

Advantages of a part-exchange

The biggest advantage of a part-exchange is convenience.

With a part-exchange, you can sell your car there and then, and drive your new one away on the same day.

But choose to sell your car privately, and you could end up waiting weeks or longer to find a buyer.

Not to mention the time and effort wasted on viewings that lead nowhere.

Selling a car privately can also be more expensive than you think once you factor in the cost of listings and advertisements, but these costs are avoided when you opt for a part-exchange.

Disadvantages of a part-exchange

A part-exchange won’t always give you the best price for your vehicle and you may find you get more money for your car if you choose to sell privately.

Simply put, this is the trade-off for the ease and convenience of a seamless part exchange.

The dealer may not always be able to match what you could get from a private sale.

Can I part exchange a car on finance?

Part-exchanging a car with outstanding finance is often possible, but first you’ll need to pay a settlement figure to end your current agreement.

If your settlement figure is less than the value of your car, you can use the Equity towards a deposit on your next vehicle.

However, if your settlement figure vehicle is greater than the value of your car (the vehicle’s in Negative Equity), you will need to pay the difference.