Trade-in value refers to the amount of money a seller can receive when exchanging an item, such as a vehicle or electronic device, for credit towards a new purchase. This value is determined by factors like the item's condition, age, and market demand. For example, when trading in a car at a dealership, the dealer assesses the vehicle's condition and current market trends to establish its trade-in value. This value can significantly reduce the cost of a new car or other items, making it an attractive option for buyers looking to upgrade.