Buying guides
How does part exchange work?
Part exchanging is a great way to help you buy your next car. But what does it mean and how does it work? Our guide has the answers.

By Cazoo editorial team
Buying a car is exciting but it can be one of the biggest purchases you’ll make. You can reduce the amount you pay up front or on finance by using your old car as part of the deal. This is known as part exchange. Here’s our guide to part exchange and why it might be a great option for you.
How does part exchanging work?
Part exchanging means using the value of your old car as part of the payment for your new car. If you choose to part exchange your old car, the dealer puts a value on it and effectively buys it from you. However, rather than give you cash for your old car, the dealer subtracts its value from the price of your new car. So you only have to pay the difference between your old car’s part-exchange value and your new car’s price.
Here’s an example:
Your new car has a price of £15,000. The dealer offers you £5,000 in part exchange for your old car. That £5,000 is subtracted from the price of your new car, so you only have to pay the remaining £10,000.
How does the dealer calculate my old car’s part-exchange value?
There are many factors that determine how much a used car is worth. These include its make and model, age, mileage, condition, whether it’s fitted with any desirable options and even its colour. All of these and more affect how a car’s value depreciates over time.
Dealers generally refer to one of the used car valuation guides compiled by industry experts, which take all the factors mentioned above into account, or they use their own calculation system.If you part exchange your car with Cazoo we’ll take some information about your current car at checkout and give you an instant online car valuation. The price of your part exchange then gets deducted from the cost of your Cazoo car. It's haggle-free and we won't chip away at your offer
Should I do anything to my old car before part-exchanging it?
There are a few things you should always do before you move your old car onto a new owner, including when you’ve part-exchanged it. Gather all the paperwork you have for the car including the service book, any garage receipts and the V5C registration document. You also need all the sets of keys for the car and any parts or accessories that came with it, and you should give it a good clean inside and outside.
What happens to my old car when I part exchange it?
One of the benefits of part exchange is that you hand over your old car at the same time as you get your next car. That means you’re never without a car and you don’t have to deal with selling your old car, or finding somewhere to park it until you can find a new owner for it.
Whether you choose to have your Cazoo car delivered or to collect it from your local Cazoo Customer Centre, we’ll take your current car off your hands at the same time.
Can I part exchange my old car if there’s outstanding finance on it?
It's possible to part exchange a car before you’ve fully paid off any PCP or HP finance you’ve taken out on it, depending on where you’re getting your next carfrom. Not all car dealers offer this service.
If your current car has outstanding finance on a PCP or HP agreement with another dealer or lender, Cazoo will still accept it as a part exchange as long as its valuation is higher than the amount you still owe that dealer or lender. All you need to do is let us know the correct settlement amount during checkout and send us what's known as a settlement letter before you receive your Cazoo car. You can get your settlement letter by calling or emailing the lender on your finance agreement.
Part exchanging your car is easy with Cazoo and there are lots of high-quality used cars to choose from. Simply use the search function to find one you love then buy or finance it online. You can choose to have it delivered to your door, or you can collect it from your nearest Cazoo Customer Centre.
We're constantly updating and adding to our stock. If you can't find the right one today, it’s easy to set up a stock alert to be the first to know when we have cars that match your needs.