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How to part exchange on a car

Part exchanging your old car can reduce the price of a new one – and save you the hassle of having to sell your old model. So how does it work?

Part exchanging your old car can reduce the price of a new one – and save you the hassle of having to sell your old model. So how does it work?

Written by
Julie Daniels
Motor insurance expert
Last Updated
27 MARCH 2025
5 min read
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60-second summary

Just want the basics? Here’s your quick guide to part exchanging your car:

  • When you part exchange your car, you trade it in with a dealer to reduce the cost of a new or used car. This can save you time and effort compared to selling privately.
  • Advantages of part exchange: It’s a quick, safe and convenient way to upgrade your car without the hassle of advertising, arranging viewings, or negotiating with buyers.
  • Disadvantages of part exchange: You may get a lower price than if you sold the car privately, as the dealer will set the value based on resale potential.
  • Research your car’s value using online tools, ensure it’s clean and well-presented, and provide a full service history and documents. Minor repairs could also help secure a better price.
  • Negotiate, try a different dealer, or sell the car privately if the price isn’t right. Some online car-buying services also offer competitive part-exchange prices.  

What does part exchange mean?

When you part exchange your car, you trade it in to buy a new or used car from a dealer. The value of your car is deducted from the price of the one you’re buying. This can save you money, as well as the hassle of selling or auctioning your old car.

Advantages of part exchange

  • It’s likely quicker than selling privately
  • No need to advertise your car
  • No organising viewings and test drives
  • No haggling with potential buyers

Disadvantages of part exchange

  • You’re unlikely to get as much as you would if you sold the car privately
  • The dealer sets the price
  • Fewer buyers/dealers to choose from

How to get ready for part exchange

Before you approach a dealer about part exchanging your car, you’ll need an idea of how much it’s worth. Your car’s part exchange value will depend on its age, condition, mileage, service history, specifications, as well as any modifications.

How much is my car worth in part exchange?

Online tools like Auto Trader will help you get an idea of how much your car is worth. Remember, the online resale value isn’t necessarily what a dealer will pay for it, as they’ll be looking to maximise their profit, but knowing your car’s value will help you negotiate. These tools can also give you an instant offer on your car, which you could use towards the purchase of your next vehicle.

It’s good to have a baseline figure in your head of how much you’ll accept. If the dealer’s offer is too low, it might mean you can’t afford the new car. So, make sure to know the point at which you’ll decide to go elsewhere or sell privately.

Where can I part exchange my car?

Most dealers will offer an option to part exchange, but you should do some research on which dealers offer the best deals. If you’re having your car serviced at a local dealership, it’s worth seeing if they can offer you a good price. With franchised dealers, it’s easier to buy another car of the same make, and their familiarity with the brand makes it easy for them to appraise your car.

How do car dealers calculate a part exchange car valuation?

Car dealers use various sources of information to calculate a part exchange quote. These include:

  • Previous sales data: Dealers often refer to historical sales data to understand what similar cars have sold for in the past.
  • Auctions: Information from car auctions can provide insights into current market trends and values.
  • Other dealers: Dealers may consult with other dealerships to gauge the going rate for certain makes and models.
  • Part-exchange calculator: Websites like Auto Trader and CAP HPI provide valuation tools that dealers might use to benchmark their offers.
  • Condition and mileage: The specific condition and mileage of your car will also influence its valuation.
  • Market demand: Current demand for your car model can affect its value, with high-demand models fetching better prices. 

How can I get a good deal on a part exchange?

To get the best part exchange car valuation, it’s important to make sure your car – and its paperwork – are in tip-top condition.

When preparing your car for a part exchange quote, think about the following things:

  • Research your car’s value: This can help you negotiate effectively.
  • Carry out any minor repairs: Even small scratches can be used to negotiate a lower price.
  • Mechanical checks: Ask a mechanic to check if any mechanical work is needed and worth paying for. Make sure you top up your oil and pump up your tyres.
  • Check everything’s there: Make sure your car is complete with all accessories, such as floor mats and spare wheels.
  • Hand over all keys: Provide both sets of car keys if possible, plus wheel nut key if used, as these can be expensive to replace.
  • Presentation: Make sure your car is clean and tidy, inside and out. A well-presented car makes a better first impression.
  • Honesty: Be honest about any issues with the car. Dealers can easily check its MOT history online.

Make sure you have your documents in order

Try to provide as many of these as possible. Missing documents could reduce the part exchange valuation. You’ll need:

  • Your V5C log book
  • Proof of purchase or finance settlement letter
  • Driving licence/proof of address
  • An up-to-date MOT certificate
  • Service history
  • Any invoices for tyres and other vehicle extras
  • The car manual.

Be honest about any issues you’ve had with the car. It’s easy for dealers and private buyers to check your car’s MOT history online. They’ll be able to see your mileage, and how the car has fared in past MOT tests, so it’s not worth trying to pull the wool over anyone’s eyes.

What if I'm not happy with my part-exchange quote?

If you receive a lower-than-expected part-exchange price, you have a few options:

  • Negotiate: Try haggling with the dealer to see if you can get a better price. That could be for a better price on the new car, a better part-exchange value, or both. 
  • Shop around: Depending on how available the car you want to buy is, consider trying different dealerships to compare offers.
  • Walk away: Don’t be afraid to walk away from the offer. You could try selling your car privately, which could get you a better price. 
Author image Julie Daniels

What our expert says...

"Dealers will routinely offer you less than your car’s market value, so only accept such offers if the deal works for you and you’re keen on a quick sale. You might be better off using sites such as Auto Trader to advertise your car for sale, get a guaranteed part-exchange price or even an instant offer you could use towards the purchase of your next car "

- Julie Daniels, Motor insurance expert

Should I part exchange my car?

Ultimately, it’s up to you. If you’re determined to get the highest price, you may be better off selling your car privately – although that will likely cost you more time and effort. Research similar models and see how much they’re selling for. You can then compare this with part-exchange prices before making your decision.

If you’re eager to buy your new car and would rather wait to get a good price on your old one, you could also consider car finance to bridge the gap.

Compare car finance

Are there alternatives to part exchange?

If you’re unhappy with your part exchange quote, you have a number of other options, including:

  • Selling privately: Selling your car privately can often yield a higher price. It involves listing your car on online marketplaces or classifieds, reaching a wide audience, and negotiating directly with buyers. 
  • Selling at auction: Selling through auctions can attract competitive bidding, potentially fetching a good price. However, be aware of the fees charged by auction houses.
  • Using an online car buying service: These platforms provide valuations and arrange for car collection. While the price might be lower, the process is convenient and fast, often completing within a day. 

Frequently asked questions

Does it matter what time of year I part exchange my car?

Depending on what car you have, there may be times of the year when it’s more attractive to dealers and private buyers. For example, a convertible may be less popular in the cold winter months, whereas a sturdy 4x4 might be a hot commodity.

It’s all about supply and demand. Used car prices have been rising since 2021 and there’s been huge growth in the used electric car market.

Can I still part exchange my car if it’s damaged?

Yes – in fact, you may be better off part exchanging your car if it has mechanical issues or cosmetic damage rather than paying to get it fixed first.

To decide your best course, weigh up the repair costs against the increased sale value to see if paying for the work would be worth the effort and expense. A good mechanic should be able to tell you if it’s worth it. 

Can I haggle over the value of my car in a part exchange?

Yes. To get the best price, you’ll often need to haggle with the car dealer. It may feel awkward but, like you, the dealer is hoping to get the best price and knows it’s part of the game.

Remember, the asking price of the new car could come down and the part-exchange value could go up. With haggling, it’s a good idea to start high so you have more wiggle room. And remember, you can always walk away if you’re not happy with the proposed deal.  

Can I part exchange or sell a car with outstanding finance?

It’s a little more complicated, but yes. You’ll need to find out your car’s current value and how much you need to pay the finance company (the settlement figure).

If the car is worth more than you owe, you can put the equity towards your new car. However, if you owe more than the car’s part exchange value, you’re in negative equity. This would mean you’d need to pay the difference or roll it into a new finance deal. 

Can I part-exchange a car that's worth more than the one I’m buying?

Yes, in this scenario, the dealer may offer you the difference in cash or as a credit towards future purchases.

It’s important to ensure that the dealer provides a fair valuation for your car and that the terms of the deal are clearly outlined. Be sure to compare offers from different dealers to ensure you’re getting the best possible deal. 

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Julie Daniels - Motor insurance expert

Julie is passionate about delivering a great customer experience and rewarding people for saving on their insurance through our loyalty and rewards programme. She’s spoken to the media, including outlets like Sky News and Capital FM, about car and home insurance, as well as our rewards scheme.

Learn more about Julie

This article is written by a Compare the Market expert, backed by data and enhanced by AI. Find out how we ensure accuracy and quality in our Editorial Guidelines.

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