Can I Part Exchange my Car?

Tim Carpenter
Written by Tim Carpenter

While a deposit isn’t mandatory in most cases, we can accept down payments in the form of part-exchanges or cash and this will subsequently reduce the total amount that you are borrowing.

Many finance companies recognise the part exchange as effective as a cash deposit when arranging finance and this has the benefits of increasing your chances of securing the loan as in reducing the amount you need to borrow, which in turn means you will be paying less each month and less interest in total.

Finance companies also recognise a part exchange or deposit as your stake in the purchase of the car. Your own investment in its purchase is likely to make it more certain than otherwise that you are going to keep up the repayments on the vehicle’s finance – rather than risk it being repossessed or having to be sold in the event of your default.

Even with your part exchange, any finance company also has a responsibility for assessing your ability to repay by checking your credit record.

Naturally, a good or even fair credit score, together with the deposit, is likely to stand you in good stead when it comes to making your application. Many of our large panel of lenders can help those with excellent, good or fair credit with finance, and offer competitive rates in doing so.

A number of our lenders actually specialise in bad credit car finance, however, so try not to worry if your credit score is less than perfect. We have lenders that can help customers with CCJs and defaults, and ex-bankrupts too.

Upon approval, you can buy a car from any reputable dealership in the UK. And it isn’t just car finance that we supply, we can offer van, motorbike and motorhome loans too.

Get a quote
No impact on your credit score
Rates from 6.9% APR. Representative APR 24.9%

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5 years
Total cost of credit £ 2000
Total repayment £ 2000
48 monthly
payments of
£ 245 98

Rates from 6.9%: the exact rate you will be offered will be based on your circumstances, subject to status.

Representative example: borrowing £6,500 over 5 years with a representative APR of 24.9%, an annual interest rate of 24.9% (Fixed) and a deposit of £0.00, the amount payable would be £181.16 per month, with a total cost of credit of £4,369.52 and a total amount payable of £10,862.52.

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CarFinance 247 is a trading name of CarFinance 247 Limited, a credit broker and insurance intermediary, and 247 Money Group Limited (247 Money), a lender. Both companies are part of the 247 group of companies.

CarFinance 247 is authorised and regulated by the Financial Conduct Authority under reference number: 653019. Registered office: Universal Square, Devonshire Street North, Manchester, M12 6JH. Registered in England. Company registration no. 06035525. Data Protection Registration Number Z1897658.

247 Money is authorised and regulated by the Financial Conduct Authority. Registered office: Universal Square, Devonshire Street North, Manchester, M12 6JH. Registered in England. Company registration no. 10989530. Data Protection Registration Number ZA456831.

All finance is subject to status and income. Written quotations on request. CarFinance 247 can introduce you to a limited number of finance providers, including 247Money, based upon your credit rating and will receive commission for such introductions.

† We do not charge a fee for arranging the finance, however some of our lenders may charge a fee. Your account manager can provide more information on this

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