Part-Exchange (PX)
A part-exchange is when a customer trades their existing vehicle in against the purchase of another, with the dealer giving an allowance for the PX that reduces the amount payable on the new car.
Part-exchange is the single biggest source of used stock for UK franchised and independent dealers. The dealer appraises the customer's car, agrees an allowance (usually somewhere between CAP Below and CAP Average), and nets that allowance off the retail price of the vehicle being purchased. The PX then enters the dealer's stock — to be retailed, wholesaled, or auctioned depending on its fit for the forecourt.
How dealers value a PX
Valuation is a mix of trade book (CAP or Glass's), visual appraisal against the book's condition bands, mechanical checks, and retail-demand judgement. A PX that fits the dealer's forecourt profile (right age, right brand, right price band) gets valued closer to CAP Average or Clean. A PX that doesn't fit gets valued at trade wholesale — often several hundred pounds below Clean — because the dealer plans to move it on through wholesale channels rather than retail it themselves.
Why non-fit PX is where trade platforms help
Every dealer takes in PX stock they don't want to retail — wrong brand, too old, too many miles, too niche. Traditional routes are auction (fees, bidding risk) or direct calls to trade contacts (slow, limited reach). Trade marketplaces like Lotify let the dealer post a wanted card or advertise the PX directly to verified buyers who actively retail that profile, turning non-fit stock into cash without the auction middleman.
Related terms
Trade Price
Trade price is the price a vehicle changes hands at between two dealers — significantly below retail, without VAT on the margin (when sold Margin Scheme) and without retail preparation or warranty built in.
CAP Clean
CAP Clean is the trade-valuation benchmark for a used vehicle in good, ready-to-retail condition — no paint issues, full service history, the right keys and documents, and mileage in line with the age.
CAP Average
CAP Average is the trade-valuation band for a used vehicle in honest, saleable condition with typical wear for its age — presentable enough to retail after light prep, but below the Clean benchmark.
Retail Return
A retail return is a used vehicle that didn't sell on the forecourt within the dealer's target holding period and is being moved back into trade — typically at 60 to 120 days old.
Put the terms to work
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