How part-exchange actually works
The three figures every part-exchange comes down to, and the settlement rule most dealers would rather not explain.
In one paragraph
A part-exchange is three figures: what your car is worth to the dealer, what is still owed on it, and the difference. If you owe more than the car is worth, that shortfall is real money and must be paid or added to your new finance. ONECARS shows all three figures on the order form before you sign.
Three figures, not one
The allowance is what we will pay for your car. The settlement is what your finance company says is still owed on it today. The equity is the difference — and it can be negative. Every ONECARS order form states all three, in that order, before you sign anything.
The shortfall, honestly
If your settlement is higher than your allowance, you are in negative equity. The gap does not disappear: it is paid by you, or added to the finance on the new car, where it costs interest. A dealer who says "we will sort the settlement" without showing you the figure is hiding the gap in the new price. We show the figure.
What affects the allowance
Condition, history, keys and mileage. A warning light, a missing service history, a single key or a damaged panel each reduce what your car is worth to any dealer. We tell you which, and by how much, rather than a single lower number with no reason.
A firm figure needs six photographs
An online estimate is an estimate. The allowance becomes firm when we have seen the car — in person, or from six photographs we specify — and it stays firm for the reservation period.
ONECARS Garage Ltd, FRN 943671, credit broker not a lender. Nothing here is financial advice.