Help Guide: Motoring
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A Consumer’s Guide to Part Exchange Cars

If you’re currently looking for a new car then the chances are that you’re considering part exchanging your old car. This guide tells you about how part exchange works, how you can get the best deal and the other factors you should be considering.

How Part Exchange works
Part exchange is where your old car is sold to the garage that you’re buying your new car from in exchange for a reduction to the new car’s price. This can either meant that you pay the remaining balance there and then or you take out a loan to cover the payment through instalments. In this latter instance you need to check out each garage’s interest rate; whilst they may offer a significant price for your old car their interest rate may be extortionate.

How to get the best deal when Part exchanging your car
Part-exchange online
There are some retailers that operate exclusively online, and as such your part exchange is arranged through online means. Whilst this may see you finding providers who are willing to pay above the market price, this can cause issues when the car is actually collected. If your car is deemed to be in a poorer condition than you described, you’ll inevitably be offered less. This may then mean wasted time or see you having to settle for the smaller amount.

Considering selling, rather than part exchanging your car
Before you go ahead and part exchange your car for a new one you’ll want to think about whether this is really the best option. In some instances it may well make more sense to sell your car and use the cash as a deposit or part payment towards the new one. In order to weigh this up you’ll need to get an idea of your car’s market value. Try checking auction websites for completed auctions that have involved a car that is as close as possible to your model and car’s condition.

Other factors to think about when opting for Part Exchange Cars
Always negotiate
No matter where you’re buying your new car from there is always room for negotiation. Don’t be afraid to try and drive down the price of the new car and drive up the payment for your old car. Dealerships expect this, which then means that their cars may well be overpriced.

Choosing a reputable dealership
Prior to even gathering prices or looking around for cars you need to know which dealerships to visit and which to avoid. Poor dealerships may frequently offer warranties that they do not honour, they may refuse to take cars back within the allowed timeframe or they may just generally offer poor after sales service. In the very worst instances they may be using MOT garages that pass their cars for a backhand payment. To this end you should always check out consumer review websites to see how past customers have found their experiences.