Part Exchanging a Car Explained

Part exchange is a popular, hassle-free way of getting you out on the road in a brand-new car. The system essentially acts as a fast track for trading in your old car in favour of a new one. It’s not quite as simple as a direct trade though, and the deal can also depend on how valuable the dealership views your current vehicle.

In this article, we will explain what part exchanging a car entails and provide you with all the information you will need to help you decide whether it’s the right choice for you.

Part exchange is when you take the value of your current car and use this towards the cost of your new car. For example, if your current car is valued at £5,000 and your new car is priced at £8,000, then you will only pay the difference towards your new car. This is known as the ‘price to change’ and would be £3,000 in this case. 

It’s important to note, though, that the value of your car may differ depending on the dealership you’re looking to exchange with. Different dealerships will use different methods of valuation, meaning that the offer you get at one place may not be matched at the next.

The part exchange valuation will include a road test which will review how old the car is and what condition it is in. If there are faults with the car, if it has had a poor service history or if the MOT is about to run out, this will affect the value. The closer your car is to immaculate, the higher the valuation is likely to be, as scratches, dents and scrapes can all chip away at the potential value of your vehicle.

Common valuation factors include:

• Make
• Model
• Age
• Mileage
• Condition
• Service History
• Specification
• Colour

In most cases you can, however, it will add an extra step to the process. If you have outstanding finance, this means you haven’t fully paid off your vehicle and therefore don’t own it. This doesn’t necessarily stop you from part exchanging your financed car though, as you can request a figure to settle the outstanding amount.

How the process is carried out can differ between dealerships and at JCT600, we can settle the finance from your old car on your behalf. 

If your car is part of a Personal Contract Purchase, it can still be used in a part exchange, whether you wait until the end of the contract or decide to exchange it during. If there is an outstanding finance cost, most dealerships will take care of this as part of the agreement.

The part exchange can be done with a new dealer – it doesn’t have to be with the dealership with which you entered the PCP agreement.

As the part exchange involves you handing over your current car to a dealership, you must provide a range of documentation to ensure that the dealership is able to acquire all the relevant information about the vehicle.

One document that isn’t required anymore is the MOT certificate as all of the information regarding this is available online.

When part exchanging your car, you’ll need:

• V5 registration document 
• Service/history logbook 
• Spare key 
• Locking wheel nut keys 
• Any invoices for work carried out on your vehicle 

There are a number of things you can do to your old car before exchanging, all of which can help it achieve a higher valuation. It’s recommended that you get a full professional clean of the vehicle, both inside and out, as this will help improve the condition of the car. The cleaner your car looks and smells, the higher the chance that the dealership will offer you a higher valuation of your vehicle.

You should also assess the condition of crucial areas such as the tyres and bodywork. If there is any damage or excessive wear and tear to these areas, you should consider getting them fixed before taking your car in for the part exchange. Whilst these fixes can of course cost you money, it may be less than the amount that the dealership will deduct from the valuation.

As with any deal, there are pros and cons but the chances are if you’re considering a part exchange deal it’s because you’re looking to swap your old car for a newer car sooner rather than later. With that in mind, these are the 4 main advantages to part exchanging your car: 

1. You can drive your old car to one of our dealerships, hand over the keys and drive away with your brand-new car. By selling privately, you could be left for a period of time with no car, or two cars at once. 
2. You can part exchange with us even with outstanding finance left on your old car. By selling privately, all outstanding finance must be paid before the car is sold. 
3. There is no need to spend money on advertising as you would do when selling your car privately. 
4. Overall, part exchanging is a far more hassle-free car exchange and car-buying experience. 

The main drawback to part exchange is that you might not get as much for your car as you would if you sold it privately. That being said, if you’re considering a part exchange deal it’s likely not because you think you can fetch a high price for your current vehicle. Often, people will forgo the potential higher fee they could get for their car in favour of the many benefits of the hassle-free part exchange deal.   

You can part exchange your vehicle with JCT600 and to get started you can use our handy online car valuation tool to get a guide price.

The valuation prices are powered by Auto Trader who have 116,000 daily vehicle updates and also have access to sale prices from nationwide vehicle auctions. They use all of this information to provide guide valuations based on the latest market intelligence. Of course, the exchange price we offer will be subject to a final inspection of your car, so if you are planning on visiting us and are considering part exchange please bring with you, your vehicle’s up-to-date documentation and service history. 

If you have any questions regarding our current part exchange policies or just need a hand, don’t hesitate to contact us. In the meantime, why not keep your finger on the pulse and keep an eye on our blog for the latest industry news?