Trade-in Value
Definition
- When purchasing a new vehicle, the dealership will accept your existing vehicle as a partial or full payment towards your purchase.The amount credited is typically five percent below the wholesale value of the vehicle.
Synonyms
market price, worth, equivalent value, assessment
Related Terms and Acronyms
- Boot — Definition,
- Cash or other property used in an exchange to make the values of property traded equal. For instance, if you trade in a delivery truck on a new model, the cash you pay in addition to your old truck is boot.
- Mileage Allowance — Definition,
- The number of miles, specified in a lease, that a car may be driven over the life of the lease.
- Negative-equity Financing — Definition,
- Financing for new car buyers who owe more on their trade-in than the car is worth.
- Open-end Lease — Definition,
- Sometimes called a finance lease. It usually offers lower payments, but carries a risk for the consumer. Under an open-end lease, the lessee must pay any difference between the residual value of the car as stated in the lease and the fair market value of the car, if lower, at the end of the lease. The lessor pays for the appraisal that sets the value. If the consumer doesn't agree with it, the consumer may pay for a binding, independent appraisal by someone agreed to by both parties.
