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Net Trade In Value

The net trade-in value is the amount of money offered to you by a car dealer for your old car, to be applied as a credit toward your purchase of a new vehicle. It will reduce the loan amount and payments of your new car.

The net trade-in value is the amount of money a car dealer will offer you for your old car in trade, to be applied to the purchase of a new car.  Because it is not a cash payment, sometimes a dealer will offer you more trade-in value than you might expect to receive in cash as an incentive to purchase a new car.  Applying the trade-in value to your new car purchase will reduce the total loan amount of your new car, and can have a significant impact on the size of your car payments.