An automobile trade-in is a process where a car owner exchanges their current vehicle at a dealership as part of the payment for a new or used car. The dealership assesses the value of the trade-in based on its condition, age, mileage, and market demand. This value is then deducted from the price of the new vehicle, reducing the overall cost for the buyer. Trade-ins can simplify the car buying process by allowing customers to handle both selling their old car and purchasing a new one in a single transaction. This can save time and effort compared to selling the vehicle privately. Many dealerships also offer trade-in evaluations to help owners understand their car's worth before making a decision.