QandAs: Autos

What is a Vehicle's Trade-In Value?

Answer:
A vehicles trade-in value is the amount of money

a car dealership will pay you for your used vehicle. This amount is based on age, condition, mileage, equipment, and market demand for the model.

Some dealerships may also base their offer on how much you are going to spend on a new vehicle. The trade-in value is lower than the fair market value for several reasons. After acquiring the vehicle, the dealership spends additional resources on inspection, reconditioning, and marketing. It may take several months to sell the vehicle, and there is no absolute guarantee that the dealership will recover its investment. The trade-in value takes these costs into account, plus the dealer’s need to make a profit on the resale.

Most local Car Dealers will be more than happy to provide you with a trade in value.


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