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How does part-exchange work with car finance?

A part-exchange is when you trade in your current car and put the proceeds towards the purchase of your new one. It’s generally a more convenient alternative to a private sale.

If you already have finance on the car you want to part-exchange, you will need to settle that finance with the proceeds from the sale. Any money leftover from the sale can then be used as a deposit on your new car if you wish. You would then need to obtain car finance for the remaining balance – the more deposit you put down, the lower loan amount you’ll need, meaning monthly repayments are likely to be less.

Although it is seen as a more convenient way of selling a car, it’s worth noting that the downside to part-exchange is the dealer is likely to offer you less than the market value. This is to cover costs to prepare the vehicle for re-sale which can include things like, an MOT, valet and any repairs that may be needed.

When you make a finance application with Zuto, your dedicated Car Buying Expert will be able to help you and give a valuation for your part exchange so you can make an informed decision, and help with the dealer negotiations to take the hassle away.

Are there dealers in my area that will part-exchange my car?

We work with reputable dealers across the UK and are happy to work with a dealer close to where you live, subject to them meeting our company checks. We can also help you purchase a vehicle through a private sale


When thinking about part exchanging your car, always shop around to make sure you are getting the best offer possible.

Written by

Mike Barlow

Content Manager

Mike has worked at Zuto since 2018 and uses his experience within the industry to help customers understand the ins and outs of car finance.

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