When you purchase a new car, and sell off your existing car, your existing car will be termed as a trade in car. When you approach a sales executive at most new car dealership and ask about your trade in price of your vehicle, they will call a few used car dealers and get you a quotation for it. This is NOT a free service. The used car dealer will typically have to pay a commission of $200 onwards to the sales executive for every successful transaction. This amount naturally comes off the amount they offer for your car. Besides that, some new car dealerships charge a monthly fee to used car dealers who wish to buy in trade-in cars through them. Again, this fee will come off the amount offered for your trade-in vehicle. The used car dealer is also not a direct buyer and, therefore has to offer you a price that is low enough such that he can make a profit. With so many middlemen in between, you would definitely not get a good value of your car.