Can I part exchange car on finance?
If you're currently financing your car but feel like it's time for something new, you might be wondering if you can trade-in your existing car. Well, the good news is that often, yes you can part-exchange a car on finance.
How to part exchange a car on finance
Part exchanging a car on PCP or on Hire Purchase is a relatively easy process as most dealerships will do most of the work for you. There are 3 main steps to complete when looking to part exchange cars that are on finance.
Step 1 - Understand your current settlement agreement
Ask your lender (of your current finance agreement) to offer you a settlement figure. This is the amount that you will need to pay to take full ownership of the car and settle the existing agreement.
This will be the full amount of finance agreed at the start, minus any deposit placed and the amount covered by monthly payments you've made so far. Sometimes there may be an early exit fee but this will be agreed in the outset of the agreement.
Step 2 - Car Valuation
Once you have a settlement figure in hand, you can see how much the dealer you want to part exchange with will offer you for the car.
If you're not happy with the amount offered, you're under no obligation to accept, so you should take time to see how much you can get for the car through another means of selling such as privately or through specific car buying websites.
Step 3 - Let the dealer take care of the rest
If you're happy with the valuation that the dealer has provided, you can simply accept their part exchange offer and leave them to sort the rest. In the meantime, you can begin looking at other cars that peak your interest - some dealers will offer part exchange car deals to help focus down your search
Whilst your shopping for new cars, the dealership will clear any remaining finance on your current car - all you will need to do is provide the details of your current lender including the settlement figure. You should hand over any documentation for the car too, including the V5C, service book and any manuals.
How Broker4Cars helps part exchange cars on finance
If you're considering a part exchange hire purchase car or part-exchanging a car on PCP, then Broker4Cars can help you secure a better deal. Simply contact us on 01773 512806 or fill in the below form to see how we can help you.
