How to Trade In a Car

When you trade in your car, your old vehicle’s value is deducted from the purchase of your next car. If you’re ready for a change and want to upgrade to a newer or lower mileage car, trading in your current car can help offset the cost of a new one.

Trading in also makes sense if it will cost more to repair your car than your car is worth. If you’re unsure about whether to sell your car or repair it, get a trade-in offer to see how much your car is worth before you spend money on repairs.

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Note: When using a pricing guide, check the trade-in value and not the retail cost. The retail value is the price at which the dealer sells the car and is usually higher than the trade-in value (how much the dealership thinks your car is worth).

Before you get trade-in quotes from dealerships, collect the documents and other items you’ll need, which may include vehicle title (often called a “pink slip”), auto loan payoff amount and account information (if you have an auto loan), current vehicle registration, driver’s license and all vehicle keys.

Remember, the trade-in price is really just a credit deducted from the negotiated new car price. So, look for the lowest overall price after making this calculation.

There’s usually no room for negotiating price with online marketplaces, but the efficient process with minimal back-and-forth can be attractive.

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