What is trade-in value?
The Bankrate.com financial term of the day is: "trade-in value."
When you're ready for a shiny new set of wheels, the dealer may take your old car off your hands and give you some trade-in value for it. That's an amount of credit that you'll get for your existing vehicle and will be able to apply toward the price of the new one. The convenience of trading in your old car comes at a cost, because the trade-in value is typically a bit below the vehicle's value on the open market.
Your old car can provide some trade-in value to help put you behind the wheel of its replacement.
To find the best new cars and the best new-car financing, visit the Auto section at Bankrate.com.