Part-exchange or private sale: which gets you more for your car?

The three common ways to sell

Most people selling a car in the UK use one of three routes:

• Part-exchange with a dealer when buying another car.
• Private sale directly to another person.
• An online car-buying service that values the car and collects or buys it.

Each one trades price against time, effort and risk. There is no single best answer.

Part-exchange: simple, but priced for the trade

With part-exchange, your old car becomes part payment for the next one. You hand over the keys and the paperwork at the same time as collecting your new car.

Advantages

• One transaction, often on the same day.
• No adverts, viewings or test drives.
• The dealer handles outstanding finance settlement in many cases.

Drawbacks

• The offer reflects the dealer's preparation costs, warranty risk and profit.
• A generous-looking part-exchange figure can be balanced by less discount on the car you buy.

Always compare the total cash you pay to change cars, not the headline part-exchange figure.

Private sale: more money, more work

Selling privately cuts out the middle. Buyers often pay more than a dealer's trade offer, because they would otherwise pay retail prices.

Advantages

• Often the highest price you can get.
• You control the asking price and the timing.

Drawbacks

• Time spent on photos, adverts, messages and viewings.
• Risks around payment fraud and test drives.
• Buyers expect a lower price for anything that needs work.

Payment needs care. Wait until a bank transfer has actually cleared in your account before handing over keys and logbook.

Online buyers: somewhere in between

Online buyers sit between the two. They're usually quicker than a private sale, and some will collect. Initial online valuations can change after an inspection, so treat the first figure as provisional until the car has been checked.

What affects the gap between routes

How much extra a private sale is worth depends on the car:

• Popular, well-kept cars often sell quickly privately, so the extra effort is modest.
• Older or higher-mileage cars can be harder to sell, which makes part-exchange more attractive.
• Cars needing repairs are often easier to sell to the trade, as private buyers are cautious.
• Full service history and a fresh MOT strengthen a private sale. You can check a car's MOT history on GOV.UK.

Paperwork for any sale

Whichever route you choose:

1. Have the V5C logbook ready.
2. Gather the service history and receipts.
3. Tell the DVLA you've sold the car — see GOV.UK: sold or bought a vehicle.
4. Cancel or transfer insurance once the sale is complete.

Vehicle tax doesn't transfer to the new owner, so the buyer will need to tax the car.

Next steps

Start with an indicative value so you know what each offer means. Estimo's car valuation gives a personalised range, and our guide to what your used car is actually worth explains the factors behind it.

Sources

• GOV.UK — Check MOT history
• GOV.UK — Sold or bought a vehicle
• GOV.UK — Vehicle tax