Save with "Minimum Part Exchange" trick

[Deleted User]

steve-L wrote: »

This seems to be an 'advanced' technique....
(like stoozing on credit cards)....

I can see where this can work but it means you need to understand your rights to cancel the finance deal and make sure you do everything by the book.

Perhaps the summary would be better, if I understand it then...
1) Find a dealer that is using a normal trade price on the cars they seel but a minimum PX 'deal' and is instead using inflated loans not sticker prices to make up the difference.
(I guess this is something done differently by different dealers.

2) Go thorough the process and then invoke your right to cancel

But it still seems most people with a 'banger' will then be buying a car outside their comfort zone?

No, you could go out and buy a true banger for 100 and use it as your trade in... it doesn't genuinely have to be your current car you're looking to trade in.

For example, you want to get a new used car at 6k and current have a car valued at 2k.

Sell your current car privately at 2k or whatever you get for it (dealer would probably only give you say 1.5k)
Buy a banger like this one for example (http://www.autotrader.co.uk/classified/advert/201212114585126/sort/default/usedcars/price-to/500/onesearchad/used/onesearchad/nearlynew/onesearchad/new/quicksearch/true/postcode/ne33tq/radius/1500/page/2?logcode=p)
Use this as your part ex at a dealer offering a minimum px deal say 1000.
You follow the steps in the OP this time you already have 1800 from the sale of your original car minus the 200 you paid for the banger so you get a finance deal approved on 5k and then go and get a private loan for 3.2k meaning you now have the full 5k in your bank ready to settle up early without penalty and any fees on the car loan you just need to sign the papers on.

So now your getting a 6k car, which if you had just took your original old car in would of probably only got you 1.5k off an no minimum px deal kicking in and ended up with a 4.5k loan, for the price of a 3.2k loan through a personal loan and maybe even at a lower interest rate.

So this trick works for any person even those with a car valued more than the minimum px offer. Just takes a little more leg work.

But I guess many won't do it as we live in a rather lazy society.