Why this number
The receipts — recent sales this is built on
How to use this number at the dealership
Keep the trade OUT of the price conversation
The desk wants one blended monthly payment so a lowball trade disappears inside a "discount." Settle the selling price of the car you're buying first, in writing. Then — and only then — say "and I have a trade." Two separate negotiations, two separate numbers. Full playbook in our trade-in guide.
What if their offer is below the fair range?
Ask them to show their math: "What did you appraise it at, and what's your recon estimate?" Stores that intend to keep the car for retail can usually reach the fair number. If they claim it's "going to auction," that's often true for rough units — and sometimes a line. A second written offer from CarMax/Carvana takes ten minutes and calls the bluff.
Does the trade lower my sales tax?
In most states yes — you're taxed only on the difference between the new car and your trade allowance, which quietly adds hundreds or thousands to the trade's real value. California is the big exception: CA taxes the full purchase price, no trade credit. If you're in CA, the trade offer has to stand on its own.
Where does this data come from?
Recent sold comparables for your exact year/make/model at similar mileage, plus a machine-learning book value trained on millions of dealer transactions, minus realistic reconditioning, a normal dealer margin, and transport/auction risk. Asking prices are opinions — solds are facts.