What’s My Trade-In Worth?

Preparation is key. Do it smart.

1. Make Your Trade-In “Deal-Ready”

A clean, organized vehicle signals to the dealership that you are a serious, prepared buyer.

• Bring your title with you, if you have it.

• Detail your vehicle inside and out.

• Make sure there are no unpleasant or lingering odors.

• Keep only two items in the glove box:

  • The owner’s manual

  • Maintenance receipts

The owner’s manual shows the next buyer—and the dealer—that the previous owner took pride

in the vehicle. Maintenance receipts prove the car was properly cared for and regularly serviced.

While the dealer may not keep the receipts, the impression that the vehicle was well maintained

will not be missed.

2. Cancel Any Extended Warranty on Your Trade-In

If you purchased an extended warranty on your current vehicle, cancel it after the trade-in.

• Dealerships typically do not transfer extended warranties to the next buyer.

• Your existing warranty may have unused value, which could result in a refund check mailed to you.

To cancel:

• You’ll need your original warranty paperwork, which includes cancellation instructions.

• You’ll also need a signed odometer statement showing the mileage and date at the time of trade-in (the dealership will provide this form).

Canceling an unused warranty can put real money back in your pocket.

3. Find the Real Cash Value of Your Trade-In

Understanding your trade’s true cash value gives you leverage and confidence.

The CarChamp dealership is offering you a competitive price on the vehicle you’re buying, they

will also be offering a real, market-based value for your trade-in.

a. Get a Real Cash Offer

• CarMax and Carvana are excellent starting points.

• Enter your vehicle information online and receive an actual cash offer—not an estimate.

• These are real offers; they will write you a check.

• Get offers from both if possible. The highest offer becomes your floor price. Bring it with you (printed or on your phone). Many dealerships will match or beat it to earn your trade.

b. Use Kelley Blue Book (KBB)

• Use KBB Trade-In Value, not private party.

• Be brutally honest about your vehicle’s condition.

• Dealers will identify every flaw during appraisal. Setting realistic expectations avoids disappointment and strengthens your negotiating position.

c. Understand the Tax Advantage of Trading In

Most buyers trade in their vehicle because it’s simple, clean, and often financially smart.

In many states, the trade-in value reduces the taxable amount on your new vehicle purchase.

Example:

• New vehicle price: $30,000

• Trade-in value: $10,000

• Taxable amount: $20,000

• At a 9% sales tax rate, that $10,000 trade saves you $900 in taxes

That tax savings alone can make trading with the dealer more advantageous than selling privately.

Bottom Line

Know your number, prepare your vehicle, and bring proof. The best trade-in outcomes don’t come from guessing—they come from preparation and leverage.