What is Part Exchange?
What is Part Exchange?
Part exchange is a service that most dealerships offer that involves you trading in your existing vehicle as value towards the cost of the new vehicle you want to purchase.
What is the process of part exchange?
To be able to value it correctly the car needs to be seen in person at the dealership. It will go through a thorough appraisal and be HPI checked. A HPI check is when the history of the vehicle is scrutinised. It will alert you to any worrying information that you need to be aware of and that could affect your part exchange. After these checks have been completed an exchange price is offered to you. Some dealerships provide an online service where you can get an exchange value provided through the website. However, this will always be subject to a final in-person viewing of the vehicle.
How does the dealer calculate your old car’s part exchange value?
The part exchange value is mainly calculated on the current mileage and condition of the vehicle. The variation of price is also guided by supply and demand. For example, a convertible car may hold a larger value in the summer months, rather than in the winter as they are more desirable to drive in the hotter weather. On the other hand, a 4x4 would be more saleable in the winter months.
Should you do anything to your old car before part-exchanging it and what do dealerships look for?
You don’t necessarily need to do anything to your car before part-exchanging it. Dealerships look for any worn or damaged areas that will need rectifying before reselling. If they do find anything that needs to be worked on there will be deductions.
Check out our blog here on how to prepare your car for part exchange.
Can you part exchange your old car if there is outstanding finance on it?
Yes, you can part exchange your car if there is still finance on it. You will need to bring the financial settlement documents with you when you go to the dealership. The dealership will settle the finance for you, so you don’t need to do anything.
What documents does the customer need to part exchange?
You will need to have the V5 logbook for the vehicle, the spare key, vehicle handbook, service record and financial settlement details.
Can you part exchange your current car if it’s worth more than the car you want to buy?
Here at Perrys part-exchanging a car that is worth more than the car you want to buy isn’t usually a problem. However, some dealerships may have a different policy regarding having a higher value car to part-exchange.
What happens to your old car when you part exchange it and what if you want to return the car you bought?
When a customer part exchanges their car, it will go through a preparation process and be sold again unless it is seen as unroadworthy. For any older cars that come into Perrys as a part exchange, these are usually sold directly to auction rather than selling the cars from the dealership.
If you want to return the car you bought, at Perrys we will be able to return your part exchange back to you if the car has not already been resold. Other dealerships might not offer this, double check this before you go through with the exchange.
The pros of part exchanging:
Convenience: Part exchanging is an immediate process. Listing your car privately can take weeks to sell, however, with part exchange you can trade it in and drive a new car away on the same day. This process avoids the ‘time wasters’ when selling privately and it also reduces the risk of the buying process falling through.
Safety and Security: If you want to part exchange your vehicle it’s important that you go to a well-known dealership. This means you have the best safety and security when money is being transferred, reducing the risk of potentially being scammed or not receiving your money.
Time Saving: The paperwork will be processed quickly as it’s a same day transaction. Once this is processed you simply drive your new vehicle away.
Hassle Free: You won’t have to worry about dealing with any paperwork, the dealership will do this for you, and they will settle the finance on your behalf.
The cons of part exchanging:
Value: Part exchanging your vehicle will mean the value of your car will be less than what you’d get if you were to sell it privately.
Talk to the team at your nearest Perrys dealership to discuss any enquiries about part exchange.