How should a dealer handle part-exchange enquiries that come in online?
Ask for the details that move the price before you give a figure: registration, mileage, service history, condition, outstanding finance and a few photos. Then reply quickly with a realistic range that is "subject to seeing the car", and tie it to the car they want to buy and a time to bring theirs in. Once the deal is done, record the trade-in on the sale invoice and take it into stock as its own car, at the value you allowed, so the margin on both cars is right.
What to ask before you give a number
- Registration, so you can check the exact model, year, NCT history and tax.
- Mileage, read from the dashboard, not guessed.
- Service history: full, partial or none, and the last service date.
- Outstanding finance: whether there is any, and roughly how much is left to pay.
- Condition in the owner's words: damage, warning lights, tyres, number of keys.
- Photos: all four sides, the interior, the dashboard with the mileage, and any damage.
- The car they are interested in from your stock, if they have one in mind.
How to give a figure without overpromising
Online the car has not been inspected, so give a range rather than a fixed price and say what it depends on: "Based on what you've sent, we'd expect somewhere between €6,000 and €6,800, subject to seeing the car." A single number given over WhatsApp becomes the number the customer holds you to.
Put the trade-in next to the car they want. "With your Focus at around €6,500, the Kona at €21,950 would leave about €15,450 to pay or finance" turns a valuation into a decision about a purchase.
Reply quickly. People asking for a trade-in figure are usually comparing dealers, and the first credible answer with a time to bring the car in often wins.
Outstanding finance
A car still on hire purchase belongs to the finance company until it is paid off. Ask the customer to get a settlement figure from their lender before the deal, and agree in writing who pays it and when. If the trade-in is worth less than the settlement, the difference has to be paid by the customer or added to the new deal, and that needs to be clear before anyone signs.
Recording the trade-in on the sale
On the sale invoice the trade-in appears as an allowance against the price of the car you are selling. The trade-in itself then becomes stock: a car with its own purchase price, the value you allowed, and its own preparation costs and eventual sale.
A trade-in from a private customer is a car bought from a private individual, so it can later be sold under the VAT margin scheme, with the allowance as its purchase price. If the allowance was inflated to disguise a discount on the car being sold, the margins on both cars are wrong; agree the treatment with your accountant rather than adjusting figures afterwards.
How 10X Dealership handles it
Trade-in forms on dealer websites built on 10X ask for the registration, mileage, condition and photos, and the enquiry lands in the 10X inbox with the photos attached. When the deal is done, the trade-in is entered on the sale invoice and goes into stock as its own car, so the profit on the car sold and the cost of the car taken in are both recorded.
Related questions
Should I give a trade-in price online?
Give a range based on the details and photos, clearly subject to inspection. A fixed figure without seeing the car often has to be changed, and that loses the customer's trust.
What if the customer still owes money on the car?
Ask for a settlement figure from their finance company. The car can only be taken in once the finance is cleared, and any shortfall has to be paid by the customer or included in the new deal.
Can a trade-in be sold under the margin scheme?
A trade-in bought from a private individual can be sold under the VAT margin scheme, with the trade-in allowance as its purchase price. Cars from VAT-registered businesses follow different rules.
