How exactly does a part exchange work?!

endaf

Hello all, im after some advice in regards to part exchanging the mrs' Ford Focus 2.0tdci.
She hates driving it and wants another car, i would like to think that we'd get £4000 for the car. How would that work in part exchanging it as we'd only like to buy something worth no more than £5000. So could we part exchange the car for around £4000 and then only pay £1000 for the desired car? does that work? or for a part exchange of that amount that id have to spend several thousand on a car? ive always sold privately but she doesnt want to drive the car any longer & we're looking for another car asap.
As always any & all help offered is greatly appreciated!

Captaincodpiece

In theory that's how it works.

NeverEnough

Its exactly what it says a PART exchange for a different car - the dealer /buyer offers you £X for your car if you buy their car at £X+Y - so the difference between the offer you accept from them and the price you agree to pay for their car, is what you pay.

It is the simplest and quickest way of changing cars without the hassle of selling it privately, but be warned, you are unlikely to get anywhere near the private resale value of the car by part-ex'ing. However, you also do not have to deal with endless timewasters, tyre kickers, and boy racers, no hassle with "test drives" of your car and insurance problems, and no security issues / Gumtree scammers to worry about.

Get an idea of the lowest of the low value of the car by using Webuyanycar or similar site just to see and look atAutotrader for an idea of what cars of similar age spec and mileage to yours seem to be advertised at, then you will have an idea what a dealer might offer you for yours.

Of course it will also in part depend on what car you particularly want to buy, as to the best part ex offer you will get from a dealer, and how overpriced or difficult to shift the car you want to buy might be!

endaf

thanks for the quick reply guys, so just to recap, i wouldnt be laughed out of the showroom if i agreed a price for my car of £4000 but only wanted buy their car of £5000? if thats the case then part exchange it is and polish that Focus to tip top condition!

Cornucopia

Yes, assuming there is no outstanding finance, you get a price for the trade-in, deduct that from the price of the new car, and pay the difference.

With larger dealers, it possible to "Part Ex" and trade down, but you obviously have to be very careful of your valuations to do that. In that situation, you'd be typically settling finance, or you may even walk away with a cheque.

I have done this.

Cornucopia

endaf wrote: »

thanks for the quick reply guys, so just to recap, i wouldnt be laughed out of the showroom if i agreed a price for my car of £4000 but only wanted buy their car of £5000? if thats the case then part exchange it is and polish that Focus to tip top condition!

Typically the windscreen price in dealerships already has plenty of profit build in, so if they like the look of your car, or can get it underwritten by another dealer, you may get £4k or close to it. If not, you will get less. Check the guides or get a quick valuation from Webuyanycar before you go, so you can stand your ground. Remember that the value of the deal to you is the difference between the two prices.

You may get funny looks if the new and old cars are very similar, but otherwise not liking the old car is a perfectly good reason to get rid.

Captaincodpiece

endaf wrote: »

thanks for the quick reply guys, so just to recap, i wouldnt be laughed out of the showroom if i agreed a price for my car of £4000 but only wanted buy their car of £5000? if thats the case then part exchange it is and polish that Focus to tip top condition!

I wouldn't bother polishing it.

motorguy

endaf wrote: »

Hello all, im after some advice in regards to part exchanging the mrs' Ford Focus 2.0tdci.
She hates driving it and wants another car, i would like to think that we'd get £4000 for the car. How would that work in part exchanging it as we'd only like to buy something worth no more than £5000. So could we part exchange the car for around £4000 and then only pay £1000 for the desired car? does that work? or for a part exchange of that amount that id have to spend several thousand on a car? ive always sold privately but she doesnt want to drive the car any longer & we're looking for another car asap.
As always any & all help offered is greatly appreciated!

As everyone else has already said really.

If you tell us about your car - year, miles, model, MOT, 3 / 5 door, condition then we could advise on what you might expect on a trade in price.

Also bear in mind the dealer will be looking dealer retail price for his price but offering you trade price for yours, so whilst your car might be "worth" £4,000, it might not be worth that to a dealer.

motorguy

Cornucopia wrote: »

you may get £4k or close to it.

Curious as to how you know what its worth to the trade?

Captaincodpiece

motorguy wrote: »

Curious as to how you know what its worth to the trade?

Best guess is it's a 58 plate but even that's a guess op has given nothing away other that he thinks it's worth 4k. He maybe offered 1k.

atrixblue.-MFR-.

Captaincodpiece wrote: »

I wouldn't bother polishing it.

actually a good polish before you go can be helpful.


For the dealer looking at it, its visually appeasing to know that A.he can see its kept, B. he can see dings and major scrapes without it being hidden by dirt C.he can see color variations if its had a bump, D. it limits his expense in prep products, limits having to take up his prep shop, limits having to pay his prep guy in more time on any one vehicle, and electricity power those mops, only thing he need to worry about is the vacuum cost which is very little, DA/rotary mops take a fair bit of power and that E he can just give it hoover out, put some paper mats in, spray a bit of freshner in the cab and put it out with a sale tag.


For the person who wishes to park ex, a good polish and wax will ensure he/she gets its value, if it looks dirty and tired on the outside, the dealer starts thinking numbers lower than he would have had had it been in better outside condition.