How do they work out car value in part exchange?

spicyprawn

Hi all

I have been looking for a renault clio 1.5 dci for some time now and I have found one today for £1695. It is from a local garage and they say in the advert that they will except part exchange.

Do you think they would p/e with my car which is N reg 1995 or do they not take cars this old?

How do they work out the value of cars for p/e or is it just a percentage off?

Thank you

Spicy

BM-AK

Whether they’d consider your car in part exchange is all dependent upon what your car is and whether its desirable or not, and how they'd get their money back (whether the car can be re-sold, auctioned e.t.c.)

They may not say no but just offer you something really unrealistic.

Motor dealers usually use the Glasses price guide to gauge the part exchange value of your car, together with the condition of the car.

fivetide

What they can make on it.

If you are buying froma place selling cars at £1695 then they might take yours dependign on condition but you will always get more by sellign privately.

Imagine they have £1000 on each car. So they offer £1000 for yours, then put it on the forcourt for £2000. From that you need to get the salesperson's wages, a service if needed (£200) fixing any faults you might find (new screen if it is chipped £250) potentially a new tyre (£50) and an MOT if needed (£50). Profit down to £450 and that's just with a few things off the top of the head. They have all their running costs etc to come from that too so not too much to play with.

Does that help?

5t.

System

Most dealers will use the Glass's Guide which gives values that the motor trade use.

You can do your own online valuation for you old car which should give you an idea of how much to expect (But these online guides often quote more than you actually get so don't be surprised when they offer you less)

What Car free valuations

There are other sites, but many are not free.

Parkers Used car valuation

Lum

They take the value you could get selling it privately, knock 50% off and then act like they're doing you a favour by giving you such a high valuation.

What is your old car and what's it's condition?

spicyprawn

Thanks for all you replies

The condition of the car is very good bodywork,tyres,engine etc. VW Polo 1.6 . I was thinking of selling privately But I need the car for work, I still haven't decided what to do but I was just wondering whether something like p/e was a good option or not.

I have seen my car selling on gumtree for about £800, so I'm guessing I would be better off selling privately

Spicy

spicyprawn

I have had a look on wisebuyers guide and for p/e £398, private sale £698.

Thank you for your help I understand now how they work it out.

Spicy

vax2002

They use a simple formulae
they work out what your car is worth at auction
they take the new car price
they take off the big cash discount and add them up; example
So the car you want is £1999 screen price
your old car is book trade auction value at £500
they would accept £1750 cash for the car you are buying
they take the £250 discount + the auction value £500 - the fees in Involved say £100
so you get £650 off the new car
A time and tested formula, your old car ends up at the auction sold for trade rate, quite often they get much higher than trade rate and make a bit of a bonus. Some even offer them to junk car dealers first.

harveybobbles

vax2002 wrote: »

They use a simple formulae
they work out what your car is worth at auction
they take the new car price
they take off the big cash discount and add them up; example
So the car you want is £1999 screen price
your old car is book trade auction value at £500
they would accept £1750 cash for the car you are buying
they take the £250 discount + the auction value £500 - the fees in Involved say £100
so you get £650 off the new car
A time and tested formula, your old car ends up at the auction sold for trade rate, quite often they get much higher than trade rate and make a bit of a bonus. Some even offer them to junk car dealers first.

We use an even better formulae...

We look in GAP and Glasses, then have a look online at what similar cars sell for and then offer a price accordingly...

colino

They will take it but Glass's doesn't go that old in the book and it will be a token gesture anyway, say £50. Unless they have a big yard with loads of cheap n' cheerful runners for sale, it is just a hassle to them and it will be either underwritten by the shrapnel man or go on the transporter to the nearest auction. At £1695 there isn't a whole lot to manoeuvre, I'd think you'd be better off selling privately and doing a cash deal on the car.
Incidentally Glass's and CAP aren't all that similar in valuations and it's not uncommon to price the retail car with Glass's and value the trade-in with CAP!

davidjwest

If your car is running OK then it's worth more to you than what anyone else will pay for it even private. I'd be tempted to keep running it while it's not costing money in repairs etc, try to save up and then when it does go bang you've got some cash to get another car. Puts you in a much stronger position and you can always then scrap the car if they wont offer you any trade in for it.

Boring answer, but true!