Part Exchange (PX)

Part exchange lets a customer roll the value of their old car straight into the deal on a new one, rather than selling it separately first. For the dealer, the PX vehicle becomes new stock, so the trade value agreed is part of the deal itself, not a side transaction.

How it works in a deal

• A trade value is agreed with the customer, based on the vehicle's appraisal
• That value is offset against the price of the vehicle being purchased
• Any outstanding finance on the PX vehicle is settled before the deal completes
• The PX vehicle enters the dealer's own stock to be prepped and resold (or sent to auction)

Negative equity on the trade-in

If the settlement figure on the customer's existing finance is higher than the agreed trade value, the PX has negative equity. That shortfall gets added to the new deal rather than paid off separately, so it needs to show clearly on the paperwork — as its own line, not folded invisibly into the headline price — or the customer ends up disputing what they actually agreed to.

Where this connects to other DMS functions

A part exchange touches deal building, vehicle appraisal, finance settlement, and stock management all in one transaction — which is exactly why a DMS that handles all of these in one place avoids the re-keying that happens when they live in separate tools.