Although I personally believe that you can never have too many cars, most ‘normal’ people think that if you are buying a new car you should also sell your existing car (if you have one).
Thankfully, out of the kindness of their hearts, nearly all car dealers are happy to let you part-fund the purchase of your new car using your old car – the famous Part Exchange!
Most dealers are still finding it hard to buy stock at the moment, so being offered a car to buy is great news for them.
But, and it’s a big BUT, they will only ever take a part exchange if they know they can make money out of it. This means that for a car worth between £2,000 and £10,000, for example, you will probably get somewhere between £1,000 and £2,000 less than it is actually worth, i.e. the trade price.
This means that if you handle your part exchange badly, you can easily undo all the benefit of your great negotiation after following all the good advice in these fantastic newsletters. (No, no need to thank me!)
SELL IT YOURSELF
You will always be better off selling your old car privately, but there are some significant potential problems with this:
1) Selling the old car before you buy a new one only works if you can do without a car for a few days.
2) Buying the new car first won’t be any good if your financial situation does not allow you to have money tied up in two cars for a short while.
3) It is such a chore!
Of course, if you are buying your new car privately, then part exchange isn’t an option anyway.
A THIRD WAY
Let’s face it, if you are buying a BMW from a BMW dealer and have a Ford to part exchange, it’s not really going to be a car they are desperate to own as all they will do is pass it on to a car trader. The part exchange value will reflect this.
For cars less than 3 years old and under 40,000 miles, always contact a few of the car’s main dealers, ask for the Used Car Buyer and get them to make an offer on your car. If you make half a dozen calls, you can easily find yourself £500 better off. They will all collect the car from you too.
My only advice is to never make the first move on price; they will ask you how much you want for it, but keep quiet and get them to just offer a price.
For older cars just contact a few local independent car dealers and do the same.
Hope you enjoyed this ‘exchange’ of ideas!
(Founder & Owner)