The growth of online car buying services might make you think visiting a dealer to trade in your old car against a new one is too much hassle.
Not true. With a little preparation part exchange can be straightforward, even enjoyable.
Value first
The first step to part exchange is having your own idea of what your car is worth. Many dealer websites offer an online part exchange valuation in return for your contact details.
However, the data used to compile the valuations will be from a trade and consumer supplier and that same data is used for the independent valuations supplied by used car guides and sites such as Parkers and Auto Trader, combined with their own sold prices. Both offer online valuation tools.
You can get a free valuation, or you can pay to sign up for a month for more precise valuations on multiple cars – usually about £10. Paid valuations allow you to enter your car’s exact mileage and any options which add value.
A low mileage still increases value. You’ll need to go back and check your car’s price nearer the time you visit a dealer and you can also get prices for the cars you are going to see.
If your car is near its MOT test it’s a good idea to put it through to pass before you part exchange. This adds value because the dealer knows there is no remedial work to be done.
Also, if you are due to pay your annual road tax as you are part exchanging, just buy six months. Road tax is cancelled when a car is sold, you get a refund for any whole unused months and the new owner starts again.
Get an online offer first
Before you head to the dealership to present them with your car, take a few moments and get a free valuation (or two) from online buying services. This will give you a starting point for any discussions with the salesperson down at the dealership, and if they can’t match your online price, you don’t have to part-exchange the car at all.
The three companies below are all commercial partners of The Car Expert, but there are other companies around who can offer you a similar service.
Get the paperwork together
Make sure you have the vehicle registration document (the V5C) to prove your ownership of the car, then the MOT certificate and any advisory notes.
That said, if you can’t find the MOT certificate anybody can check if a car has one for free by putting the registration into the GOV.UK website.
To show the car has been cared for, stamps in a service book are ideal but physical service books are less common than they were, as franchised dealers keep digital records which their whole network can access. So, for example if you have your Ford serviced at a Ford dealer, any other Ford dealer will be able to look this up.
Should I clean it?
Absolutely, inside and out.
In fact, consider a full valet near to then time you’re going shopping. If you pitch up at a dealership in a car covered in mud, sticky fingerprints or dog hairs the dealer will assume the car has not been cared for, won’t be able to assess any minor bodywork scuffs and scrapes and will mark its value down straightaway.
The time of a full valet and any major remedial action will have to be taken into account. Also, top up the windscreen washer fluid, check the tyres are good (and legal) and don’t turn up with any warning lights showing. Make sure all your exterior lights are working and replace any blown bulbs – it’s illegal anyway.
What about dents and scratches?
There are companies which can make good small scratches, smarten scuffed alloy wheels and remove small dents (minor enough to be pulled out without needing new paintwork). If it’s not too much trouble you can get a quote before you visit any forecourts, then you can decide how much you’re prepared to pay to get your car shipshape.
However, if we are only talking about minor parking rub marks, paint restoration kits available on certain well-known shopping sites are easy to use and work quite well.
If there are small scratches, these won’t come out at home but the dealership won’t be much concerned as their bodyshop will be able to quickly sort this far cheaper than if you had paid for it.
To the dealer, even if they may want to sell the car you are looking at quickly, they will also want to either sell your car on equally quickly or pass it on to a reseller (for example Cazoo).
The least work involved in preparing it equals less of their profit margin. It really does pay to present your part exchange well. That said, Cazoo leaves minor paint marks intact and include photos in each listing.
It’s worth remembering that even if you use one of the well-publicised car buying services which first give you an online value based on your description, you may still have to take it to a physical location to hand it over, at which point the staff may attempt to reduce the price if they decide you have not described the car accurately online.
Part exchange day
Having booked to see a car and test drive it at a dealership you can assume that as soon as you’ve pulled up and are off with a cup of coffee, an employee will zip over your car to look it over and give you a part exchange value on the spot
This is why you must get a value before you arrive (and print it out). It will help you know if the part exchange price is well out of line. That said, don’t get stressed if the offer is, say a few hundred pounds off.
The money can come off either end. Depending on the amount of profit the dealer has allowed in the asking price and if you are happy to negotiate, the asking price can come down or the part exchange value can go up. Your car’s value can also be influenced on how many of that type of car the dealer chain has at that time or how quickly yours can be sold on with very little preparation.
They key here is what is your cost to change? For example, you are keen on a £15,000 used car and your part exchange is valued at £8,000 by the dealer, even though you believe it is worth £9,000. Your cost to change is now £7,000, so can you move against the £6,000 you might have been expecting?
If your cost to change is fixed and neither the asking price will come down or the part exchange come up, then you’ll have to walk away. If you’re buying a new car then you can negotiate on the finance, ask for a service plan to be thrown in, or optional extras.
Don’t be put off. With some planning part exchange can be fair and even a pleasant experience. One last tip; if you are not handing over your car on the same day as you collect your next one, try not to rack up the mileage in between. Values are usually guaranteed for seven days.
* The Car Expert has commercial partnerships with Cazoo, Exchange My Car and Motorway. If you sell your car to any of these companies, we may receive a small commission.
