Help & Advice

Car Finance with a Part Exchange

Hello Rachel, i'm after some car finance but have a part exchange. Can a car dealer take this in swap against a new vehicle as a deposit?

Jamie Daws


Answer

Hi Jamie, thank you for your question.

In short, Yes, a car dealer can take your old car off you in part exchange and as full deposit. The car dealer will give you a price for your current car and that will be offset against the price of the car you are purchasing.

However, we can provide the finance for your new car and we can also beat dealer rates as we have over 15 lenders on our panel offering exclusive deals. We can even help people with past credit problems.

The only stumbling black may be any outstanding finance you have on your part exchange. If you don't have any then that's fine, but if you do the deposit you have will reduce as the car dealer will need to settle the outstanding finance and give you the difference. This is worked out by subtracting the amount owed to the finance company from the price the car dealer is willing to pay for your car. If you are in negative equity you can read all about that here.

When you're ready please make an online application and once accepted we provide a no obligation quote and you can buy a car from any dealer. Kind Regards, Rachel

Answer correct as of September 2016

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Representative example. Excellent Credit

Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

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More related questions

Hi, i have been accepted for finance withn car finance 247, and wondered do you deliver the car or can i view at a forecourt, and if you do deliver what happens about a trade in?Many thanks.Leigh.

Answer

Hi Leigh, great news on being approved! At Car Finance 247 we provide the car and the finance as a package. Please call on 0800 019 7180 to discuss the next steps with a sales executive. In a nut shell you inform us of the car you want and we'll source it for you within a matter of hours. We can also take your part exchange off you as full deposit. An appraisal will have to be done on your part ex over the phone and you must be as accurate as possible when describing the condition of the vehicle. I hope that helps. Rachel

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Is there any provision for part exchange as part or all of the deposit when applying for car finance?

Answer

Hi Mark, yes - the good news is that you can use your current part exchange as part or full deposit with us when applying for a new car loan. Thank you, Rachel

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Hi, Can my old car - that's probably worth around £1000 be used as a deposit for car finance? Also how soon could I have my new car if I used your service?

Answer

Hi Georgina, Yes - you can use your current part exchange as full deposit and we can have you in to new car withing 3-5 working days. I look forward to receiving your application. Regards, Rachel

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Hi there, I was declared bankrupt in 2008 and was discharged 6 months later. I need a car and have 52 plate Peugeot 307 to part exchange. My credit rating on experian is fair and only the company that forced my bankruptcy is on there. Would you be able to help me? I earn £200 a week.

Answer

Hi Russ, as long as your current credit history is clean and up to date there's no reason why we wouldn't be able to get you approved. We can also take your part ex off you and get you into a new car in no time. Is there any finance outstanding on your part ex? If not, we can use the car as full deposit. Please apply and good luck. Rachel

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Hello, do you accept part exchanges and if so what about a 1997 BMW 323I 97000 miles with Tax and an MOT for 1 Month?

Answer

Hi Simon, yes - we'd be able to take your current BMW part exchange off you with no problem at all :-) What have you been offered or the vehicle? Rachel

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Hi, unfortunately due to past personal problems I have a bad credit rating. I do need a new car and your deals seem really reasonable.I have my own car which is not on finance which I could use as a Part Exchange/Deposit. Is this possible? Many Thanks

Answer

Hi Graham, yes - we could use your part exchange as a deposit if we can get you approved for a car loan so please apply and we'll try and match you with a lender on our panel. Regards, Rachel

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Hi, 2 years ago i bought a car on finance (in my mums name) with CarFinance 247 (back then i think it was just called motor mart) because my credit history was not very good and i didn't pass the credit check that Andy Tam had done for me. Does he still work there? He was brilliant. Anyway he got the finance in my mothers name and i've been paying for that car without fail each month for about 21 months. I now require a bigger car and i'm looking at a car priced around £11,999 and there is still just over 3 years finance left on my current car. My credit score i checked on equifax today is 376. Will i be able to replace my car with a different one on finance and use the current car as a part exchange? However, there is still outstanding finance but i'm not in any arrears. Thanks

Answer

Hi Jenni, thank you for coming back to us again. Unfortunately Andy Tam left for pastures new about 12 months ago now but, yes he was a good guy. We'd love to be able to help you out but we may well need to place the finance in your Mum's name again as your credit score does seem very low. The issue being that when you place the finance in your mum's name it improves her credit rating and not yours when you make all the monthly payments on time. I'd advise to make an application in your name but with your mum as a joint hirer again and we'll try and get you approved on your own first. If we can't help you we'll be able to get your Mum approved again. We could also use your part ex as a deposit but it depends upon what the car is worth and how much outstanding finance there is. You may well find that what you owe is greater than the cars value. In that case you wouldn't have a deposit but we could still take the car in swap and settle the existing finance for you. You'd just have to come up with a cash deposit to cover the negative equity but then again you may well not be in negative equity :-) Please apply and i'll look out for the joint application. Regards, Rachel

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Hi, I have a credit score of 376, but have two defaults. Will i get finance for a car with part ex worth £1000?

Answer

Hi Jessie, there is a small possibility as you have a large deposit of £1000 that helps massively. Please apply and we'll be in touch with a decision within 2 working hours :-)

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Hi, I'm just wondering how this will work if I have outstanding finance on my trade in?

Answer

Hi Dianne, what is your car worth and what do you owe the finance company? If you have equity in your vehicle we can use this as a deposit towards a new car - if you're in negative equity we can potentially clear it with a new deal depending upon how much negative equity you have. I hope that makes sense. Regards, Rachel

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I have a ford fiesta. It's 6 yrs old its been valued at £2000 and I'd like to part exchange it for a new car that I've seen for £4000. I've a bad credit history but I'm am employed. Can anyone help me?

Answer

Hi Abigail, we help people with bad credit and also we can take your part exchange into consideration too. Please apply when you're ready on our site and you'll hear back from us in 2 working hours :-) Have a great day. Rachel

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Hi, i have some current finance on a car but we are looking to find another car. We owe about £1400 to settle the existing finance and are looking to borrow £3795 for a newer car we have seen. Will it be better to re finance or settle the existing finance then apply for more? I haven't got good credit rating but have been trying to improve it in the last couple of years. I only owe about £2000 at the very most.

Answer

Hi Lisa, so you're in approx £800 negative equity. Would you have a cash deposit to cover this?

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Thanks Rachel, the car is only worth about £600 at the most. Yes i am on the electoral roll at my current address. I pay the credit through the CCCS monthly. The car finance is only due to finish in 2014 but they have given me a settlement figure of £1400.

Answer

Hi Lisa, so you're in approx £800 negative equity. Would you have a cash deposit to cover this?

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At this current time we would not be able to raise £800 as a cash deposit but could maybe raise £200 cash deposit.

Answer

Hi Lisa, if you had a good credit history we would have been able to cover the negative equity in a new deal however £600 is quite a bit to make up. Would you be open to increasing the amount you wished to borrow to say £4500? If so, we then might be able to do something for you. Rachel

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Yes we would consider that amount. Can you explain why you would consider us on that amount.

Answer

Hi Lisa, it give us more opportunity to cover your negative equity in the price of the car while still trying to make a little profit ourselves. Thanks, Rachel

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Thanks for your help. What would be the next steps to take if we consider this and on the £4500 finance can you give me a rough estimation on the monthly payment?

Answer

Hi Lisa, the next steps would be to make an application on our website. £4500 over 4 years would be approx £160 per month and over 5 years it would be £130 per month. This is based on the fact that you don't have a great credit history. Kind Regards, Rachel

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Hello, Can i use my car as part exchange? I have finance on it and I owe about £2500. I have never missed a payment and the cars is a Vauxhall Vectra 2.2 SRi 05 plate with 59000 miles on the clock.

Answer

Hi Gordon, yes - you can use your current car as part exchange but what is your car currently worth roughly as we'd need to settle the £2500 finance? Rachel

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Hi, can i put down my current car as deposit? But it has still got outstanding finance on it? It's a ford focus 2007 plate

Answer

Hi Yasser, yes - this is still an option. What is your car worth and what is the finance settlement figure on the car?

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Hi, I currently own a vehicle with no outstanding finance on it. Part ex is worth about £3500 - Private sale more like £4500. I have seen a new vehicle at £8000 I would like to purchase but I know I would be turned down for finance due to previous problems. Any ideas?

Answer

Hi Steve, we can take your part exchange off you and as it acts as a large deposit hopefully we can get you accepted for car finance so that you can start to repair your credit history. We have plenty of bad credit lenders on our panel so i'm confident we can help. Please apply on our site when you get 5 minutes. Rachel

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I currently have a 2010 Vauxhall Corsa with £7500 left to pay on finance. Would you settle the outstanding balance and use the car for part exchange? Also, we have had a few minor scratches which have been masked by an aerosol spray. We got a quote of £750 from a body shop who used paint thinner on one door to give a valuation which has left a mark. The car needs new paintwork do you know approx how much this will deduct from the value? Thank you

Answer

Hi Elizabeth, as long as you're not in too much negative equity we'll be able to help you. Have you had a trade valuation on your Corsa from a dealer for example? If they will only give £6000 for the car then that means you're £1500 in negative equity. However, if you get a £7000 trade valuation then £500 can easily be placed into a newer deal and we could settle the existing agreement with your current finance company. Rachel :-)

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I have asked via email if i could px my freelander that I have which I got from you in June 2010 and have been told to reapply for finance again. The Freelander is still under finance but on the form it asks amount to finance and amount of deposit - how do i know what to put in there as I don't know how much the replacement vehicle will be or what my settlement figure from moneyway is and i thought my freelander would be the deposit. Cheers Betty

Answer

Hi Betty, please could you get a settlement figure first from your current finance company and come back to me with this figure along with the registration plate and mileage of the Freelander. We'll then be in a better position to help. Regards, Rachel

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Hi Rachel, I have the same sort of question as Jan. I have finance on a Peugeot 307 and i have about a year left on the finance. I use my car for work and am in desperate need of upgrading as i need a reliable car. If i take the car back to the original dealer will they upgrade it? And what happens to the outstanding balance? Also can you go to any other dealer to do the same thing? Regards, Emily

Answer

Hi Emily, we'd be able to help you out here. If you apply with us and we get you approved we'll be able to take your current car in part exchange and settle the existing finance and then get you into a new car. How does that sound? Do you have a good, fair or poor credit history? Kind Regards, Rachel

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Hi, i have just checked my credit score with experian and it's a poor 687. The main reason it says are the usage of my available credit which indicates a higher risk. The value of my highest credit limit indicates a number of credit accounts are using is high. I also currently have a car on finance which i have about £2800 left on it. I was wondering if i can part exchange it and roll the current finance onto a new one. Can you please advise if its possible at all. I also never had any CCJ's or defaults or anything like that and all my accounts showed as satisfactory in the last few years in my report? I look forward for your answer. Many thanks

Answer

Hi Roy, if you're up to your limit on all your loans and credit cards some lenders may see you as a little over exposed and not want to lend you any more money. However, if you plan on part exchanging your current car for a new one we should be able to get you approved as your score isn't as low as i've seen before. Do you have any deposit and how much were you thinking of financing? If approved you can choose your new car from any local reputable dealer. Please apply when you feel ready. Kind Regards, Rachel

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I have a car on finance with a year to go. Can i use this for part exchange and do you pay off the balance?

Answer

Hi Philip, yes you can use your current car as part exchange and if approved with us you can get your new car from any reputable car dealer nationwide so they would settle the existing finance and use any equity in the vehicle towards a deposit on your new car. Look forward to receiving your application. Kind Regards, Rachel

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Hi, i currently have a personal loan of £8300 and i have a car which is worth £9000 in PX at the dealership, what would the chance be on me getting a finance on a car worth £17000. I am also putting down £479 as deposit. My credit score is 936. Thanks, Tom

Answer

Hi Tom, is your part exchange clear of finance? If so that would act as a very large deposit and i'm confident we could help as you have a good credit score. Please apply when you get a few minutes. Rachel

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Yes the car has no finance on it at all, however I want to if possible take the £9000 px and then pay off the personal loan and obviously then carry out the finance on the £17000. I only have two direct debits, my phone and loan, I also have a credit card however I make sure I pay a lot more than the lowest amount required. Thanks, Tom

Answer

Hi Tom, We wouldn't be able to get the full £17,000 finance for you if i'm honest. We'd be able to get you the difference between the price of the new car and the part ex but you'd have to keep paying your personal loan. Is this an issue? Also when the deal funds the money gets sent directly to the dealer and not yourself. Kind Regards, Rachel

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Hi, I am in desperate need of a new car, I suffer with a back condition that is affecting my ability to drive the low to the ground sports car that I have! I would like to buy a new fiesta (test drove one - comfortable and no leg pains whilst driving!) the thing is I applied for finance with Ford but it is 'still to be accepted' more than likely won't be as it's been 4 days now. I know I have bad credit from about 11 years ago which I would like to start clearing . What is your advice on how I can get a new car ASAP so I can improve my health?

Answer

Hi H, apologies for the delay in getting back to you. As your bad credit was such a long time ago i'm more than confident that we could get you approved today and into your new car by weekend. The good news is that you have your part exchange as a deposit and you have already found the car you want. I take it you have some current clean credit history and you're on the electoral roll? Are you also employed? If so please apply asap and we'd love to help out. Rachel

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Hi, i really need help as unsure on how it all works if it can work. I have a one year old car on finance but need to get something bigger but cheaper! Problem is i have outstanding finance which will be more than what the vehicle is worth that i want to part exchange for, how can this work? Can a dealer pay my vehicle off in full and then i buy a vehicle to make up the difference?

Answer

Hi Kassy, you'd have to make up the difference between the trade in value of your car and the settlement figure amount. Is this possible? Do some research and get the figures and see where you stand. So it is possible depending upon whether you have the money to fill any negative equity. Kind Regards, Rachel

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Hi Rachel, I am interested in purchasing an Audi Q7 (used) vehicle, i would be part exchanging my vehicle as well as looking at getting finance with you also. Do you have access to the dealers you use in order to see if any of them have the vehicle i am after? Thanks

Answer

Hi Lee, once approved you can choose any car from any local reputable dealer. The choice is yours ;-)

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Hi Rachel, I have a car on finance brought from new but the car is becoming too small for me since I changed job a year ago which is further away. I want to part ex mine against a car I found at a dealer for £5699, my settlement quote is £5750. I got refused finance however when they tried to get me finance. I had a few miss payments on a mobile contract and my credit score I believe is fair to bad but i have been on top of everything including insurance, finance etc and rent since my new job. I earn £1390 a month, can I still get finance from you guys?

Answer

Hi Haymo, Firstly I would advise that you get a quote on your car as a part exchange from a reputable dealer. Hopefully if we are able to approve your for some more finance, your existing car should settle the existing finance. However there is a chance that you may hold some negative equity. In this case we could look to tie it into a new deal on a different vehicle, however if this is not possible you would need a deposit to make up the difference. Once you have a quote on your vehicle please make an application with us so we can take a closer look at the figures. Thanks Rachel

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Hi, I have a car on finance which is in my mums name. I have 2 years left and the settlement figure is £3300.

I now want to part exchange the car for a new car but want to put the new finance in my name. Can you help paying off old finance and provide new finance?

Answer

Hi Emma, we can certainly help. As long as your Mum agrees to part exchange the car (as it is her car legally) we can get you into a new car with your own agreement.

All you need to do is apply with us, get approved and then choose a car from a local dealer. The dealer where you purchase your car will take the current car on part exchange and settle any outstanding finance.

Hopefully they will give you the £3300 that you need. Is this realistic - what is the car worth approximately? Kind Regards, Rachel

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Asset 1 Just get in touch,

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Rachel Wilson, Underwriting Manager

Best available rate
Total repayment
Total cost of credit

Best available rate

Total repayment

Total cost of credit

We compare products from 18 of the UK's top lenders to get you the best deal.

Hitatchi

Representative example. Excellent Credit

Borrowing £7,500 over 48 months with a representative APR of 16.8%, an annual interest rate of 16.8% and a deposit of £0.00, the amount payable would be: £211.25 a month, with a total cost of credit of £2,640 and a total amount payable of £10,140.

CarFinance 247 is a broker and not a lender