Reply #4: yes and yes. oh, and, you will pay through the nose

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dealers very often take trade-ins when they sell cars, but you should approach them as two separate transactions (otherwise the dealer can better obscure his profit).

you should expect to get about $1,000-$3,000 less from the dealer than you would if you sold it yourself. but of course, the dealer makes it very easy and will take your car today.

you should also expect to pay $1,000-$3,000 more for the used car you buy from the dealer than you would if you bought it privately. but again, the dealer makes it easy, and you have better recourse if there's a problem with the car.


personally, i would buy and have bought a used car from a dealer, but i would be very reluctant to sell a car to a dealer, the premium is just too high, and the work involved is not that great. then again, i go to great pains to avoid any urgency in car selling/buying decisions. if you're rushed, you'll pay dearly.

best of luck with your trade!