There are many advantages of trading in a car, mainly because it is much easier than trying to sell it yourself. Instead of listing an ad, meeting different potential buyers, and negotiating price, consumers who decide to trade in their car simply come to a pricing agreement with a dealer. An article from cars.com explains the pros and cons of trading in a vehicle.
But trading in a vehicle does involve some issues, like possibly receiving less money in a trade with a dealer than in a private sale. A dealer may be more willing to take a less-than-perfect car off your hands, but you may receive less money. When you sell it yourself, you usually get rewarded with a little bit more money.
Otherwise, the same general rules apply to trading in your old vehicle as to selling it on your own, like knowing what the vehicle is worth. Kelley Blue Book features prices on used vehicles from 1984 through the present model year. It is updated constantly and takes into account mileage, vehicle condition, and factory extras of vehicles.
Beware of two extremes on trade-ins at dealerships — a really high trade-in value and a really low one. You may be able to negotiate a fair trade-in price that’s less than the amount you’d get selling it yourself, but is higher than the dealer’s original offer. By eliminating the hassle of selling the vehicle on your own, trading it in may be worthwhile, but that’s for you to decide.