How to Part Exchange My Car on Finance?

Paying for your car on finance is an excellent option, but it can leave you feeling a little trapped. If you are ready for something new, is it even possible to trade in the car you have and take advantage of part exchange?

Actually, it is! You can part exchange a car on finance and drive away with something a little better suited to your needs.

Keep reading to find out how you can part exchange your car on finance, and how Motor City Plymouth can help.

Is part exchange on finance easy?

The short version is that part exchanging your current car on finance should be fairly straightforward. You will need to know the current value of your vehicle, and the amount that you will be required to pay in order to settle your finance agreement. Much of the hard work is done by the dealership, as they will assess the value of your car and give you a settlement figure.

What is a settlement figure?

The settlement figure that the dealership reaches is the amount of money that you need to pay so that you will fully own the car, ending your current agreement. This is the amount of finance that you agreed at the beginning of your term, with the deposit you may have paid being subtracted. This also takes into account the repayments that you have already made.

What will my valuation be?

The next step is to receive a valuation from your dealership. This will be the current value of the car, taking into account any natural depreciation that has taken place, and the condition of the vehicle. Please note that if this figure seems low and you are not happy with it, you do not need to proceed, and can try different ways of selling your car if you prefer.

How do I proceed?

If the offer is acceptable, you can agree to the part exchange. You should pass over any relevant documents with your car. The dealer will then be able to clear your finance and your term will have ended.

Is part exchange on finance a good idea?

There are many reasons to want to part exchange on finance and you can expect some benefits, especially if you are doing so with a familiar and trusted dealership. These include being able to get a new car more quickly and the convenience of settling your balance in one place. However, if you are content to wait until your current agreement ends or the settlement figure is too low, this might not be the choice for you.

Visit the used car store Plymouth drivers love

If you are ready for a new car and your current finance agreement isn’t finished, that doesn’t mean you have to wait. Get in touch with Motor City Plymouth to see how we can help you to part exchange your car on finance, all while finding a great used vehicle. Or if you are just beginning to look at used cars finance Plymouth-based drivers favour, check out our options to discover more.