Can you part exchange a car on finance?

If you’re looking to get a smaller car or one with lower repayments, it is possible, but it’s not as simple as switching the finance from one car to another. You would need to settle the outstanding finance on your current car first.

So, if you want to part exchange your current car and downsize, you would need to either pay the Early Settlement Figure yourself before selling it or trade it in with a car dealer who will pay the Early Settlement Figure for you.

Yes, you can exchange a faulty car or one with problems, but it could lower the value offered. If there are faults that are cost-effective to fix, repairing them might increase the value offered for the part exchange.

Part exchange will usually get a lower value than selling privately. This is because the car dealer will offer less than the car is worth to make a profit when they sell it.

However, selling a car privately isn’t for everyone, as you’d need to list it, arrange times for people to view it, and negotiate the price with interested buyers.

Either way, if your car has outstanding finance, you can’t legally sell it. You must settle the outstanding finance by paying off the Early Settlement Figure.

Yes, many car dealers will settle your outstanding finance. They will do this by paying off the Early Settlement Figure when you part exchange your car. Make sure you request your Early Settlement Figure ahead of time so you can show proof of this to your car dealer.

No, you can’t transfer finance from one car to another, nor can you simply transfer it to another car finance company. Some finance companies offer refinancing if you want to take out a new loan to pay off the existing one. This isn’t something that we offer, as it can cause long-term debt problems.

When you part exchange your car, you’ll need to provide your V5C logbook, MOT certificate, main key, spare key, locking wheel nut key (if available), and the service book or any repair or servicing receipts you have.

If you want to part exchange a financed car, you’ll need some extra documents. These could include your driving licence and proof of your Early Settlement Figure. Your dealer can explain which documents are needed, but preparing these in advance can make the part exchange less stressful.

While it is possible to sell a car without a V5C logbook, providing the logbook when you part exchange your financed car makes it much simpler. If you’ve lost the logbook, you can order a replacement from the DVLA.

You can order a replacement logbook online at a cost.

The dealer will inspect your car to determine its value. They will consider the make and model, mileage, age, and condition. They will also look for anything that might reduce its value, such as scratches, scuffs, or dents.

Having your car serviced regularly can help keep it in better condition, which has two positives. Firstly, your car might be less likely to break down or run into problems. Secondly, providing a clear service history may make it easier for a dealer to sell the car, as it shows it has been well looked after, so it might help you get more from the part exchange.

A filthy, unclean car can reduce the value you’ll get from part exchange. Cleaning your car regularly, especially before taking it to the dealer, helps keep it in good condition and might increase the value you get when trading it in.