Reverse part exchange - is it viable?

[maz]

Due to a change in circumstances I am considering changing my current van for a cheaper older one, in the hope of freeing up some money. Unfortunately I am not in a position to sell the van privately first and then buy another one for cash. I need to do a straightforward swap.

So I would like to part exchange the current van at a dealer’s when I find a suitable replacement, but am wondering if this will ever be financially viable for me.

I’m guessing that the part exchange value will be less if I’m not ‘upgrading’ to a more expensive van. Is it regarded as the equivalent of just selling your van to a dealer? Even though they would be still be making a profit on the sale of the cheaper van? What sort of difference in part exchange values would I be looking at?

The only Funster I know of who has done a reverse part exchange is BreweryDave with his Carthago. Has anyone else gone down this route?

Would also be interested to know Funster dealers’ take on this. Johns_Cross_Motorhomes ? Simon Howards Motorhomes ?

Thank you.

 

[Clickem]

Depends a bit on the value of what you are selling/buying, but you on average would expect a dealer to take about £7,000 out of a deal. So, you would lose £7,000 to swap for a van identical to what you already have

 

[Simon Select]

Due to a change in circumstances I am considering changing my current van for a cheaper older one, in the hope of freeing up some money. Unfortunately I am not in a position to sell the van privately first and then buy another one for cash. I need to do a straightforward swap.

So I would like to part exchange the current van at a dealer’s when I find a suitable replacement, but am wondering if this will ever be financially viable for me.

I’m guessing that the part exchange value will be less if I’m not ‘upgrading’ to a more expensive van. Is it regarded as the equivalent of just selling your van to a dealer? Even though they would be still be making a profit on the sale of the cheaper van? What sort of difference in part exchange values would I be looking at?

The only Funster I know of who has done a reverse part exchange is BreweryDave with his Carthago. Has anyone else gone down this route?

Would also be interested to know Funster dealers’ take on this. Johns_Cross_Motorhomes ? Simon Howards Motorhomes ?

Thank you.

Hi Maz,
This happens a lot.
The main reason is someone losing a partner for instance and wants to down size to something smaller or more manageable.
We quite often give cheques back to customers when this happens so completely normal.
Feel free to have a look at our used stock or PM me with what you are looking for and we may be able to help.
You will also notice than none of our used stock has any forecourt finance on it...... just saying!

Si

 

[maz]

Hi Maz,
This happens a lot.
The main reason is someone losing a partner for instance and wants to down size to something smaller or more manageable.
We quite often give cheques back to customers when this happens so completely normal.
Feel free to have a look at our used stock or PM me with what you are looking for and we may be able to help.
You will also notice than none of our used stock has any forecourt finance on it...... just saying!

Si

Thanks for that, Simon. I’ll send you a PM.

So does the part exchange value vary, depending on whether you’re trading up or down?

 

[Simon Select]

Thanks for that, Simon. I’ll send you a PM.

So does the part exchange value vary, depending on whether you’re trading up or down?

Dealers will tell you it will vary but in reality the price is the price.
If for instance your van is worth £10,000, its worth £10,000. If your looking at a van that the dealer only has say £4000 across then there is no wiggle room.
However if you were looking at a £100,000 Cathargo where they have £20,000 margin in it then you may find they offer "£15,000" against yours. In reality all they have done is discount the new van.

The most important bit is the cost to change figure. It makes no odds how we get there, we can over allow for yours and give less discount on the new one, or give less for yours but discount the new one more, it makes no odds as the cost to change is the same.

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[Theonlysue]

I think any dealer will try and make on the transaction. That's business.
Everything is possible. Just depends if you can agree on a price.

 

[Robert Clark]

Dealers will tell you it will vary but in reality the price is the price.
If for instance your van is worth £10,000, its worth £10,000. If your looking at a van that the dealer only has say £4000 across then there is no wiggle room.
However if you were looking at a £100,000 Cathargo where they have £20,000 margin in it then you may find they offer "£15,000" against yours. In reality all they have done is discount the new van.

The most important bit is the cost to change figure. It makes no odds how we get there, we can over allow for yours and give less discount on the new one, or give less for yours but discount the new one more, it makes no odds as the cost to change is the same.

Seems very transparent

 

[BreweryDave]

When I did mine, they gave me what I would’ve expected from a dealer whether going up or down, about 10k less than my private asking price, but it suited my purpose, and like you, I needed to do a swap deal. It helped that the dealer I used was a Carthago main dealer, and my trade in was a Carthago, and my downsize van was a globecar which they had, not one of their franchised makes. I was happy with how it went, and the balance was in my bank within minutes. ( Premium motorhomes) .
So yes, I took a financial hit, but there weren’t many private buyers with the best part of 70k in their pocket for a private purchase with no warranty etc. Worked for me?

 

[Candapack]

Ive just changed to a slightly older, but bigger, van. Luckily, I WAS able to sell privately first, then buy for cash (from a dealer).
Similar models to both mine and the one I was buying were available at a couple of other dealers, and both priced around the same, £40000.
The dealer i bought from offered me a trade in, with the cost to change being £8000. By selling privately and buying for cash, the actual cost to change fell to £1500.
Doesn't help if you're not able to do that, but shows what's possible.
Good luck.

 

[HandyAndy]

Due to a change in circumstances I am considering changing my current van for a cheaper older one, in the hope of freeing up some money. Unfortunately I am not in a position to sell the van privately first and then buy another one for cash. I need to do a straightforward swap.

So I would like to part exchange the current van at a dealer’s when I find a suitable replacement, but am wondering if this will ever be financially viable for me.

I’m guessing that the part exchange value will be less if I’m not ‘upgrading’ to a more expensive van. Is it regarded as the equivalent of just selling your van to a dealer? Even though they would be still be making a profit on the sale of the cheaper van? What sort of difference in part exchange values would I be looking at?

The only Funster I know of who has done a reverse part exchange is BreweryDave with his Carthago. Has anyone else gone down this route?

Would also be interested to know Funster dealers’ take on this. Johns_Cross_Motorhomes ? Simon Howards Motorhomes ?

Thank you.

From your first paragraph one can assume that is because the current van is still on finance.?
You can still sell it privately but it's a little more leg work to make sure the other party is happy that you pay it off with the sale funds and not just disappear into the ether.
Go get a trade in value for it, then work out the difference between that and what it's worth privately sold.. I thinkl you'll see the difference is worth the extra hassle!

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[maz]

Dealers will tell you it will vary but in reality the price is the price.
If for instance your van is worth £10,000, its worth £10,000. If your looking at a van that the dealer only has say £4000 across then there is no wiggle room.
However if you were looking at a £100,000 Cathargo where they have £20,000 margin in it then you may find they offer "£15,000" against yours. In reality all they have done is discount the new van.

The most important bit is the cost to change figure. It makes no odds how we get there, we can over allow for yours and give less discount on the new one, or give less for yours but discount the new one more, it makes no odds as the cost to change is the same.

Very informative. Thank you Simon.

 

[HandyAndy]

Dealers will tell you it will vary but in reality the price is the price.
If for instance your van is worth £10,000, its worth £10,000. If your looking at a van that the dealer only has say £4000 across then there is no wiggle room.
However if you were looking at a £100,000 Cathargo where they have £20,000 margin in it then you may find they offer "£15,000" against yours. In reality all they have done is discount the new van.

The most important bit is the cost to change figure. It makes no odds how we get there, we can over allow for yours and give less discount on the new one, or give less for yours but discount the new one more, it makes no odds as the cost to change is the same.

and THIS Maz, exactly this..

 

[maz]

From your first paragraph one can assume that is because the current van is still on finance.?
You can still sell it privately but it's a little more leg work to make sure the other party is happy that you pay it off with the sale funds and not just disappear into the ether.
Go get a trade in value for it, then work out the difference between that and what it's worth privately sold.. I thinkl you'll see the difference is worth the extra hassle!

Hi Andy. No, it’s not on finance. I just need to move straight from one van to another. I would love to sell it privately and release as much money for it as I can, but that’s just not possible for me.

 

[maz]

When I did mine, they gave me what I would’ve expected from a dealer whether going up or down, about 10k less than my private asking price, but it suited my purpose, and like you, I needed to do a swap deal. It helped that the dealer I used was a Carthago main dealer, and my trade in was a Carthago, and my downsize van was a globecar which they had, not one of their franchised makes. I was happy with how it went, and the balance was in my bank within minutes. ( Premium motorhomes) .
So yes, I took a financial hit, but there weren’t many private buyers with the best part of 70k in their pocket for a private purchase with no warranty etc. Worked for me?

Thanks Dave. Yes, I remember reading about your van swap at the time. Glad it all worked out for you.

 

[HandyAndy]

Hi Andy. No, it’s not on finance. I just need to move straight from one van to another. I would love to sell it privately and release as much money for it as I can, but that’s just not possible for me.

Ahh Full timer then?
There's always a way round that.
Find someone to lodge with temporarily
Buy a shipping container to store everything in temporarily, then sell on afterwards
Move in with Family EEK!!
Look for a really run down but otherwise sturdy old Motorhome, buy that and move into it while giving it a nip and tuck with the sole intention of making it worth more than when you bought it.
Rent a static caravan.
I'm sure there are other ideas too.

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[maz]

Ahh Full timer then?
There's always a way round that.
Find someone to lodge with temporarily
Buy a shipping container to store everything in temporarily, then sell on afterwards
Move in with Family EEK!!
Look for a really run down but otherwise sturdy old Motorhome, buy that and move into it while giving it a nip and tuck with the sole intention of making it worth more than when you bought it.
Rent a static caravan.
I'm sure there are other ideas too.

Hi Andy. I appreciate the sentiments but I need to keep this swap as simple as possible.

 

[davanne]

maz Before my late husband died we did exactly what you are wanting to do.
We had a 6 months old Motorhome that wasn’t suitable for us due to my husbands illness and I asked this same question on the forum . Peter from Johns Cross messaged me and told me to ring the showroom.
They had just the van we wanted and gave us a very good deal on our almost new van with cash adjustment in our favour.

 

[maz]

maz Before my late husband died we did exactly what you are wanting to do.
We had a 6 months old Motorhome that wasn’t suitable for us due to my husbands illness and I asked this same question on the forum . Peter from Johns Cross messaged me and told me to ring the showroom.
They had just the van we wanted and gave us a very good deal on our almost new van with cash adjustment in our favour.

Hi Anne. Thank you for that. I’ve had a look at Johns Cross stock and nothing suitable for me at the moment - but I will keep checking them out.

 

[Langtoftlad]

Hi Anne. Thank you for that. I’ve had a look at Johns Cross stock and nothing suitable for me at the moment - but I will keep checking them out.

It might be worth ringing them anyway - they may stock not yet listed, or even know of expected incoming vehicles.

 

[maz]

It might be worth ringing them anyway - they may stock not yet listed, or even know of expected incoming vehicles.

True. I will do that.

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[davanne]

Hi Anne. Thank you for that. I’ve had a look at Johns Cross stock and nothing suitable for me at the moment - but I will keep checking them out.

They were brilliant to deal with Maz so keep checking their stock