What is a "trade-in"?

What is a "trade-in"?

James Bell (Publisher, Auto Reviewer) gives expert video advice on: Should I put a deposit on a car? and more...

A “trade-in” is the value that you're going to get for the vehicle that you drove onto the lot, with the one that you're going to be trading in on the new vehicle that you're going to be purchasing. People generally trade in vehicles because they don't want to go through the process or the hassle of selling the vehicle privately. The downside of a trade in is that you'll get less for your old vehicle than you would if you sold it privately. However, there's a value to time, energy and effort and so many people are willing to take less for their “trade-in” value in order to see the vehicle walk away.