Here again - know what your vehicle is worth. Use the NADA sources previously mentioned.

 

You can take the dealer's offer for your vehicle, or you may wish to try selling it yourself. If you don't want to bother with selling it yourself, try this approach: Before you go shopping for new, take your current vehicle to three dealerships and ask what they will buy it for. This will give you a legitimate estimate of the trade-in value. Then, you know that any dealer trade allowance substantially different from this price is not legitimate.

 

You see, dealers love to "make you happy", and one of the favorite ways to do this is by manipulating the trade-in price. If you expect top dollar for your prized possession, they can do that - and then increase the selling price of the new vehicle to make up for it. Or, they can try to make up for the great purchase price you negotiated on the new vehicle by cutting the trade allowance.

 

But then you won't let that happen. Because you keep the transactions separate!!!