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Trade-In Value Calculator

Calculator

Estimate your car's trade-in value and how it affects your new car loan

Free to useNo data storedAI insightsUpdated: February 2026

Trading in your current car? See how the trade-in value affects your new loan, especially if you still owe money on it. Understand equity and avoid negative equity traps.

Enter Your Details

Enter Your Details

$

What you expect to get for your current car

$

If you still have a loan on your current car

$

Price of the car you want to buy

$

Extra cash you can add to the trade-in

%

Real-World Examples

Positive Equity Trade-In

Car worth $18,000, owe $5,000. Buying $35,000 new car.

Inputs Used:

tradeIn:18,000owing:5,000newCar:35,000

Equity: $13,000. New loan: $22,000 instead of $35,000. Huge savings on interest!

Negative Equity Situation

Car worth $12,000, owe $16,000. Buying $30,000 new car.

Inputs Used:

tradeIn:12,000owing:16,000newCar:30,000

Negative equity: $4,000. New loan: $34,000 for a $30,000 car. Consider waiting to pay down current loan.

Frequently Asked Questions

Glossary

Equity
The difference between your car's value and what you owe. Positive = asset, Negative = liability.
Negative Equity
When you owe more than the car is worth. Also called being 'underwater' or 'upside down'.
Trade-In Allowance
The amount the dealer credits toward your new car purchase for your trade-in.

How to Use

  1. 1Enter your car's estimated trade-in value
  2. 2Add any amount still owing on your current loan
  3. 3Enter the new car price you're considering
  4. 4Include any additional cash deposit
  5. 5See your actual loan amount and repayments

Key Information

  • Trade-in value is typically 10-20% less than private sale
  • If you owe more than it's worth (negative equity), this adds to your new loan
  • Positive equity reduces your new loan amount
  • Dealers may inflate car price while offering 'generous' trade-in

Pro Tips

  • Get independent valuations before negotiating trade-in
  • Negotiate new car price and trade-in separately
  • Consider private sale for more money (but more hassle)
  • If underwater, consider paying off current loan first

Avoid These Mistakes

  • Accepting dealer's first trade-in offer without research
  • Rolling negative equity into a new loan (compounds the problem)
  • Judging trade-in generosity by payment instead of actual value
  • Not getting the trade-in offer in writing

Disclaimer: This calculator provides estimates only and should not be relied upon for financial decisions. Interest rates, fees, and policies change frequently. Always verify information with lenders directly. This is general information, not personal financial advice. Consider seeking advice from a licensed mortgage broker or financial advisor.

Last updated: February 2026

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