Start with two separate figures
The allowance is the value agreed for the vehicle coming in. The finance to settle is the amount allocated to clearing its outstanding finance. The customer's net part-exchange credit is the allowance minus that settlement.
Use a settlement figure confirmed for the planned transaction through your normal lender-checking process. Keep its supporting reference and any relevant date with your deal records. DealerSlip does not obtain a settlement quote or pay the lender.
Example: the allowance is higher than the settlement
Illustrative figures for a sale totalling £13,645.
| Incoming vehicle | Amount |
|---|---|
| Agreed part-exchange allowance | £3,200.00 |
| Less finance to settle | £1,150.00 |
| Net part-exchange credit | £2,050.00 |
Only the net £2,050 reduces the amount the buyer still needs to cover on the next car. If a £500 deposit has arrived and £7,000 is allocated to finance on the new purchase, the calculation is:
| Vehicle sale | Amount |
|---|---|
| Sale total including extras | £13,645.00 |
| Less net part-exchange credit | £2,050.00 |
| Less deposit received | £500.00 |
| Less finance contribution for the purchase | £7,000.00 |
| Balance to collect | £4,095.00 |
Old finance and new finance go in different fields
| Amount | DealerSlip field | Effect on this example |
|---|---|---|
| £3,200 incoming vehicle value | Price → Part exchange → Allowance | Reduces the balance by £3,200. |
| £1,150 to settle on the incoming vehicle | Price → Part exchange → Finance to settle | Adds £1,150 back to the balance. |
| £7,000 towards the car being sold | Payment → Finance contribution | Reduces the balance by £7,000. |
| £500 deposit already received | Payment → Payments received | Reduces the balance by £500. |
Record the lender for the incoming vehicle in Finance lender. The separate Finance provider field in Payment identifies the provider contributing to the new purchase. These can be different organisations.
Example: settlement is higher than the allowance
If an incoming vehicle has a £3,200 allowance and a £4,000 settlement, the net credit is minus £800. This shortfall increases the amount needed for the deal; it does not become an £800 payment received.
Illustrative sale with a £10,000 sale total, a £500 deposit and no new finance contribution.
| Calculation | Amount |
|---|---|
| Sale total | £10,000.00 |
| Less incoming vehicle allowance | £3,200.00 |
| Add incoming vehicle finance settlement | £4,000.00 |
| Less deposit received | £500.00 |
| Balance to collect | £10,300.00 |
Enter the allowance and settlement as their positive amounts in the separate fields. Review the resulting sales and purchase documents against the agreed arrangement. The calculation does not establish whether a lender will fund a shortfall.
Check both vehicles before downloading
- The Vehicle step identifies the car you are selling. The Part exchange fields identify the car you are taking in.
- Check each registration, mileage, VIN and stock reference against the relevant vehicle records.
- Record the incoming vehicle's V5C, keys and service history in its own fields.
- Review the seller declaration and the actual allowance and settlement before issuing the purchase invoice.
- Do not add the allowance, old finance settlement or new finance contribution again as a received payment.
- Confirm settlement and incoming funds outside DealerSlip. A calculated zero balance does not confirm lender payment.
Common questions
What happens when there is no outstanding finance?
Enter zero for Finance to settle. The full allowance then becomes the net credit against the sale.
What if the settlement changes before collection?
Confirm the updated figure, update Finance to settle and review the new balance. Download revised documents through your normal process and keep the previous version if it was already issued.
Does the purchase invoice carry out finance or ownership checks?
No. DealerSlip records the information you enter. It does not verify ownership, contact lenders or settle an agreement.