Part exchange isn’t a new discovery in the car business, or in any other business. It can apply to any deal, and a reported 3.2 million of us do it every year. Despite that, many people still don’t really understand how part exchanging a car works, or how to see how good or bad a deal you’re getting. It’s vital to know the whole process and its ups and downs before you commit after all, and we’re here to help you do it.
What Part Exchange is
Part exchanging, or part exing, is where you are selling your car to another seller and getting money off of the new one you’re buying. It can apply to any deal where the seller is buying your current property off you and taking the value off the new product, but cars are up there with the most common of them. That’s the whole the bottom line of it all at least.
Even after you know what a part exchange with your car is, though, you still need to know how it works. It’s a tricky process to master, but it’s also vital that you do to get the best deal.
Benefits of Part Exchanging Your Car
First of all; there’s a reason that people do it so regularly. The very nature of how part exchanging a car works is the reason for it’s biggest benefits after all. Learning them is the key to making the most of the whole thing and protecting yourself too.
More than anything else, it’s easy. It’s pretty much impossible to argue that part exchanging isn’t the easiest way to deal with your car selling. If you’ve seen a car you already want to buy, it’s even easier. All you have to do is take your car to the dealer and take your new car home. What more could you want from a transaction? The dealer should give you a valuation of what your car is worth for you to make a decision with, but even that can be done on the spot!
Because of what we’ve said above, it’s also worth noting how quick it is to part exchange your car instead of selling privately. You could have your car up for sale for hours; you could have it up for sale forever. There’s no way to know who will buy your car, or when. There are just too many variables. When you are part exchanging, you know you are driving in, trading-in and driving out. That can give you time to do other stuff and make sure you’re not waiting around to get your new car on the road.
Issues with Part Exchanging your Car
So, although you’re making life easy for yourself and saving a tonne of time in the process, sadly, it’s not all good. To really understand how part exchanging a car works, you need to know the downsides too. It only makes sense that there’s money to be made by other people in the process, and they are not doing you a favour here after all.
Dealers Know Their Stuff
The biggest downside to part exchanging is that you’re at risk of being taken advantage of if you don’t go to the right place. We don’t mean you’ll lose out on thousands for your car, but your dealer is only doing this to make a profit on your old vehicle. To do that, they’ll give you less than what it might be worth. It makes sense, they aren’t just being nice. That means they know what they’re doing and they know how much less your car may be worth than you think. Tyres, MOT and age are just the start of it. They all go into what a car costs.
You’ll Get a Lower Value
Next up is the lower value you’ll get from a car dealer. Part exchanging has a lot of benefits, so it only makes sense that you pay for them in some way or another. With all of the convenience comes a lower price for your car. As we said, it’s either going to auction, scrap, or someone else. If your car dealer is going to make a profit, they have to give you less than what they could sell the car for. If you sold privately, you’d be able to get a much higher price, but it would likely be much harder to do. It’s a trade-off.
They May decline
Finally, when it comes to part exing your car, it’s important not to forget that nothing is certain. They might give you an awesome price, and they might not, but even on top of that, they don’t have to take your car at all if they don’t want to, just like you don’t have to give it to them. You need to find a compromise between you and the car seller to make sure you’re both getting a deal that you’re happy with, and that alone can be a hard thing to do.
Should You do it?
Ultimately, a part exchange can be incredibly useful, and for the time and effort you’re saving, it could well be worth doing. You will without a doubt have a much smoother purchasing experience and you’ll be able to get rid without much hassle at all, you just pay for the privilege.
If you want more money for your old car, sell it yourself and see what you can get for it. Car dealers are looking to make a profit in all this, so you’ll get less money than you could for them to do that. They’ll find every reason they can to lower that too, so it can be worth getting your car checked out and repaired if you’re going to do it.
The rest is up to you. Happy Driving!