How Can a Part Exchange Help You Buy Your Dream Car
Using part exchange is one of the best ways to get the car of your dreams. What is it, and how can it put you in the driver’s seat of your ideal vehicle?
The process of buying your dream car is a lot easier if you've already got some money behind you. As many people don't have the cash up front to buy their ideal car, this is where financing options can be a great help, such as Personal Contract Purchase (PCP) or Personal Contract Hire (PCH). Some people use a personal loan to buy their first car, but if you have already got a vehicle, which is in good condition, a part exchange might be the best option for you. If you are looking to buy your dream car, using a part exchange and car finance can get you closer to your dream vehicle. Let’s show you how.
What Is a Part Exchange?
The definition of part exchange where you trade in your current car, but using the value of the vehicle you are trading in towards the purchase of your new one. Much like homeowners will use equity to help them buy a better house, you can use the current value of your vehicle to help you get behind the wheel of a newer one as the car you are trading in goes towards the value of the new one, effectively “knocking down” the price.
Why Use Part Exchange?
The great thing about part exchanges is trading in your current car gets you closer to purchasing your ideal car right away. Part exchange gives you the opportunity to sell your car right there and then in the dealership. However, if you choose to sell your car privately, it may take a long time to find the right buyer, potentially wasting a lot of time and depreciating the value of the car in the process. A part exchange effectively bypasses a lot of these issues.
Ensuring You Know the Value of Your Vehicle by Using Our Motor Match Vehicle Valuation Tool
There are a number of variables that can help you buy your dream car. In order to make the most of your part exchange, you need to make sure you are looking after your car. If you want to get an insight into the value of your vehicle, you can let us find the right vehicle for you, but if you want to part-ex, you need to know your vehicle’s value. Using our Motor Match Vehicle Valuation tool, you can enter a few simple details and we can help you in the space of a few clicks.
If you are looking for your ideal car, it has never been easier to make this dream a reality, and with part exchange, it can get you closer than ever.
What Might Affect a Car’s Part-Ex Value?
The Warranty
A car warranty will give you protection against needing to pay for replacement parts and labour costs. A car warranty is like an insurance policy for a vehicle owner. As every car manufacturer offers a warranty offering to replace or repair any parts under the warranty should anything happen to it, this will have a positive impact on the value of the vehicle. If you opt for an extended warranty with your vehicle, where the warranty lasts longer than the time allocated by the dealer, this is going to be even more beneficial for you when it comes to part exchange.
The Condition
When you consider the condition of a vehicle during the time of the sale, this is going to have a massive impact on the part exchange. It's not just about the aesthetics of the vehicle, but if you are someone who likes to look after your car, washes it regularly, but also rectifies any mechanical damage prior to the evaluation, this will ensure you get more value for your money.
Service History
The service history will highlight any work that's been completed on the vehicle. The most important thing as a car owner is to have an annual service, making sure you are taking care of your car while also maximising its value.
Age
Vehicles depreciate in value over the years due to a wide variety of reasons, such as technology and outdated mechanics. The only exception to this rule is if you bought a genuine classic vehicle.
Reliability
Cars that are reliable and better to repair will have a better value than cars with a poor reliability record.
Mileage
The lower the mileage, the more desirable it is. Cars with higher mileage are more costly to maintain.