Part exchange versus private sale – which way to go when buying a new car
When looking to buy a new car there are lots of things you need to consider; price, quality and functionality are all important and it’s good to take some time to think before you make a final decision.
Depending on the type of car you want, you may wish to part exchange or go to a private seller, but before you choose, read on for some helpful information that should make your decision easier.
What is part exchange?
Although many dealerships operate in different ways, the main principle of part-exchange is the idea that you ‘pay’ part of the car price through trading in your current car.
Why choose part exchange?
If you have been given a parent or relative’s old car, then you may want to part exchange. A car with low mileage, minimal damage, or one that is fairly popular will be worth more and therefore contribute more towards the cost of the car you want to buy.
When not to part exchange?
The value of a car is in the eye of the beholder, which means although it may cheapen the cost of your dream car, it may mean you are getting a bad deal.
Some dealers may under-value your current vehicle in a bid to make you pay more for the new car.
Make sure you visit a number of car dealers in order to get a good idea of your car’s market value. As long as you are well informed you should be able to negotiate safely and ensure you get the best deal.
What is private sale?
Private sale is when you buy your car for a fixed fee from a private seller.
Selling your car by private sale
Why choose private sale?
Private sale is sometimes preferred as the person is interested in selling their car only, rather than trading with yours. This means less negotiation is needed as you are simply purchasing goods.
For people who do not currently own a vehicle or their vehicle is in a particularly bad state, private sale is the only way to go.
Private sale is also good as it means you don’t have to sacrifice on what you want, many car dealers do not offer part exchange options which means you may not be able to get your first choice car through exchange.
When not to use private sale?
If you have a fairly good car that you no longer need it makes less sense to make a private sale as opposed to part exchange, as you will be left with two cars and will have to sell your previous car separately.
Similarly, you may find it hard to come up with the funds to finance a new car, especially the more exclusive brands (think Jeep, Mercedes-Benz or BMW) which means that private sale may not be a financially viable option for you.
Despite this, if you have been trying to save for a long time and are only slightly off the asking price, you shouldn’t let this deter you: sites such as Car Loan 4U can help with your car finance, can provide you with ways to get the car of your dreams – without running into debt.
