How Trade-In Affects Your Payment
Your trade-in value directly reduces the amount you finance. Here's the formula:
Amount Financed = Vehicle Price - Trade-In Value - Down Payment + Taxes & Fees
2026 Average Car Loan Rates
| Credit Score | New Car APR | Used Car APR |
|---|---|---|
| 750+ | 5.5% | 6.5% |
| 700-749 | 7.0% | 8.5% |
| 650-699 | 9.5% | 11.5% |
| Below 650 | 12%+ | 15%+ |
Tips to Get More for Your Trade-In
- Get multiple offers - Check Carmax, Carvana, and local dealers
- Clean your car - First impressions matter for appraisals
- Fix minor issues - Replace burnt-out lights, worn wipers
- Know your car's value - Check KBB and Edmunds beforehand
- Negotiate separately - Don't bundle trade-in with purchase price
Should You Trade In or Sell Privately?
Private sales typically get 10-20% more, but trade-ins offer convenience and tax benefits in most states (you only pay tax on the difference).