Trade-In Tips

Be weary of the trade-in value
A HIGH TRADE-IN VALUE:
When a dealership offers you a high trade-in value for your vehicle, it will most likely use the price against the purchase of your new car. The dealer will cover the loss on the used car by making you pay a higher price for the new car.

The bottom line? You won't be saving any money.
A LOW TRADE-IN VALUE:
If the dealer offers you too little for your trade-in, it may suggest that you're getting a low price for the new car.
"Compartmentalizing" the transaction
As you're negotiating, try to extract an "actual cash value" for your trade-in from the dealer. This is a number you'll want to see in your contract.
Given how easy it is to "juggle" the numbers, negotiating the purchase price, trade-in value, and monthly payment all in one can place you at a disadvantage. Compartmentalizing up front removes this problem.
Reference a financial calculator and/or an appraisal guide beforehand
Plug in the trade-in value to get an idea of how it will affect monthly payments on the newly purchased vehicle. Checking your car's appraisal value will help you recognize if the dealer is quoting you a fair price.