How to Get the Most Money for Your Trade-In
Selling your car on Craigslist might net more cash, but tax breaks and dealer convenience are closing the gap. Learn which path fits your car and your schedule.
"Do you have anything you’re looking to trade?" It’s a question every car buyer has heard at the dealership. While trading in your old model for a discount on the new one may be convenient, "you could be leaving thousands of dollars on the table," says Michael Crossen, manager of auto testing at Consumer Reports.
Make Sure Trading In Is the Right Choice
Although you’re likely to get the most money by selling your car privately on a site like Craigslist or Facebook Marketplace, it will cost you time and aggravation. You’ll have to schedule appointments and humor tire-kickers, all while paying to keep the car registered and insured. Plus, some states reduce the taxable amount of a new-car purchase by the amount of your trade-in’s value, a benefit that private sellers can’t access. (Learn how to get more money for your used car.)
Expert Tip: Rare or low-mileage vehicles are an exception, Crossen says. "You may find eager buyers in car clubs or online forums who are willing to pay more than a dealership for a special vehicle," he says.
Learn more about Carvana vs Carmax and others in How to Sell Your Car to an Online Retailer.
Get Your Paperwork in Order for the Sale
No matter how you sell the old car, you’ll need a title to transfer ownership. If you’ve lost yours, you might have to wait weeks and pay a small fee for the state to replace it. If you have a remaining loan balance on your old vehicle, you’ll need to pay it off before the bank gives you the title. Both processes require paperwork and bureaucracy.
Expert Tip: This is another situation where a trade-in can be more convenient than a private sale: Many dealers can pay off your trade as part of the overall deal, get the title for your old car, and fill out all the paperwork on your behalf. Dealerships often have "runners" for just this scenario.
Skip Car Repairs That Won't Pay Off
Give your trade-in a wash and a vacuum, but don’t worry about fixing major issues or cosmetic damage, especially if it’s an older or high-mileage vehicle. Even though dealers are good at spotting flaws, you’re unlikely to recoup what you would spend fixing them ahead of time. Dealerships factor in repair costs when pricing a used car, which is one reason trade-in values are lower than retail prices.
Expert Tip: "Most trade-ins that need work or have high mileage go straight to auction," Crossen says. "The dealers that buy those cars know they’ll have to recondition or repair them, and factor that into the price no matter what work you’ve done." So save the time and money, as dealerships actually prefer to do the work themselves at internal wholesale rates.
Don't Mention the Trade Until the End
Salespeople can use your trade-in to hide a bad overall deal. They might give you top dollar for your vehicle, only to jack up the price of your new car, or vice versa. The best way to avoid that trap is by keeping the two deals separate: Negotiate a final deal on your new car’s price first, and only then mention the trade-in.
Expert Tip: If you think the dealer’s offer for your trade-in is too low, use the online offers you already have as leverage. "If the dealer won’t match those numbers, take the better offer from CarMax, Carvana, or another retailer," Crossen says. As always, being prepared to walk away keeps you in control of the negotiations.
What's Your Car Worth?
Use CR’s Trade-In Value Estimator to find out
Editor’s Note: This article also appeared in the May/June 2026 issue of Consumer Reports magazine.
