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I am Looking for Car Finance. Can I Use My Old Car as a Deposit?

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?

Asked by Jamie Daws

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

Tim Carpenter
Answered by Tim Carpenter Car Finance Expert Edited on

Liked by 254 People

5 Years
Total cost of credit £ XXX.XX
Total repayment £ XX,XX.XX
48 monthly
payments of
£ 245 98

Rates from 6.9% APR: the exact rate you will be offered will be based on your circumstances

Representative example: borrowing £6,500 over 5 years with a representative APR of 27.4%, an annual interest rate of 27.4% (Fixed) and a deposit of £0.00, the amount payable would be £188.74 per month, with a total cost of credit of £4,824.37 and a total amount payable of £11,324.37

Rates may differ as they are dependent on individual circumstances. Subject to status.

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