If you’re looking to part exchange your car on finance, there are a few things you need to consider. Firstly, it’s important to decide whether or not you want to part exchange your old car for a new one, or use the part exchange as a deposit on a new car. Secondly, you’ll need to work out how much money you can afford to borrow and what your monthly payments will be. Finally, make sure you shop around for the best finance deals available. In this blog post, we’ll discuss all of these things in more detail!
What is a part exchange and how does it work?
Part exchange is a type of transaction where you trade in your old car for a new one, often obtaining part or all of the value as part of the deal. With part exchange on finance, you can use this value to offset part or all of the price for your new vehicle and finance the rest with a loan, making it easier to upgrade to your dream car without needing to pay for it outright.
When part exchanging a car on finance, there are several factors that will come into play. The first being what kind of car you want to part exchange – if it’s an older model then its resale value may be lower than more modern vehicles, so you may not get as much money back after part exchanging it.
The benefits of a part exchange over other methods of selling your car
When part exchanging, you can get a better value for your trade-in than if you were to sell the car privately or part-exchange it with a dealer. As part of part exchanging your car on finance, you’ll often have access to extra incentives such as lower monthly payments, shorter loan terms and/or higher trade-in values.
Part exchanging your car on finance could also provide more flexibility in choosing a new vehicle, as the sale of the old one will typically be part of the transaction. You may find that you are able to afford more features or upgrades in your next car when part exchanging rather than buying outright or trading in without financing.
How to go about organising a part exchange when you’re looking to buy a new car?
One option that can help make buying a new car easier is part exchange. This process works by trading in your old vehicle when you purchase a new one, and it could be part of an overall finance package.
Part exchanging your car on finance allows you to use the equity built up in your current vehicle towards part-paying for the cost of a new car. The amount of money you receive depends on the value of your part exchanged vehicle, and this amount will come off the total amount you pay for the new car.
The part exchange process involves agreeing with the dealer what price they’ll give you for your existing vehicle.