The Complete Guide to Trading In Your Vehicle

Trading in your current vehicle is one of the easiest ways to reduce the amount you need to finance on your next car. Here's everything you need to know.

How Trade-Ins Work

When you trade in a vehicle, the dealership assesses its value and applies that amount as a credit toward your new purchase. This reduces your loan principal, which means lower monthly payments and less interest paid over time.

Maximizing Your Trade-In Value

• Clean it up — A thorough wash and interior cleaning can make a surprising difference
• Gather maintenance records — Documented service history adds value
• Fix minor issues — Small repairs like replacing worn wiper blades show the car was cared for
• Know your car's value — Research comparable listings on AutoTrader or Canadian Black Book
• Don't negotiate trade-in and purchase separately — Focus on the total deal

Trade-In vs. Private Sale

Private sales typically yield 10-20% more than trade-in values, but require more effort — advertising, showing the vehicle, and handling paperwork. For most buyers, the convenience of a trade-in outweighs the modest premium of a private sale.

Tax Benefits in Canada

In most Canadian provinces, you only pay sales tax on the difference between your new vehicle price and trade-in value. This can save you hundreds or thousands in taxes.

When applying for financing through Car Network Canada, mention your trade-in during the application process so our partners can factor it into your deal.