Buying a New Car: Trade In the Old One or Junk It?

Washington’s rule applies to all three. RCW 46.12.650 requires you to tell DOL in writing within five business days after a vehicle is sold, traded privately or to a dealership, or otherwise disposed of. See how to file.

A trade-in can get buried in a monthly payment. These questions bring it out.

• “What is the price of the new car before my trade?”
• “What are you giving me for my trade, as a separate number, in writing?”
• “Does that change if I don’t trade anything in?”
• “What does the trade do to the tax on this purchase? Show me on the worksheet.”
• “Do you take cars that don’t run? Do you charge to remove one?”
• “I still owe money on it. How is the payoff handled?”

Tax can affect the comparison, and we are not the source for how it applies to your deal. Ask the dealer to show you, or check with the Department of Revenue. Then you can compare the trade with a junk offer on the same terms.

1. Get the dealer’s number

   Write it down, along with any tax effect they showed you.

2. Get a junk offer

   Use our script so the description is accurate, and ask whether anything is deducted. Our worth guide explains the factors.

3. If it runs, check its private-sale value

   See finding your car’s value. Be honest about its condition, and the time you would spend selling.

4. Compare

   Look at what each one puts in your pocket or takes off the new deal, and how much work you would do for it. The largest number isn’t always the right one if your time is short.

If you are not trading in, you need a plan for the two cars.

• Drive the old one to the dealer only if it’s safe. If it isn’t, have it towed or get a ride.
• Keep the old car insured until it’s gone. Then call your insurer with the date of sale.
• Plan on the pickup. Same-day pickup is often possible but never promised, so don’t plan around it. Have it picked up from your driveway, the apartment lot or wherever it is. See same-day pickup.
• Don’t leave it in the dealer’s lot without an agreement. The car still has your name on it.
• Plates: DOL says sellers are “legally obligated” to remove them, and it has rules for what to do with old plates.

On the new car’s side, the title application fee on a dealer retail sale or lease has been $40 since Oct. 1, 2026. The dealer can explain what’s in the total.

A loan changes the picture. A lender with a lien on the car generally has to release its interest before you can sell. If you owe more than the car is worth, the difference doesn’t go away. A dealer may offer to roll it into the new loan, so read that part closely. See selling with a lien and owing more than a car is worth.

Read before you sign. The Attorney General says “there is no three-day right of cancellation” when you buy from a dealer at its main place of business, so you can’t count on undoing the deal the next day.

We tow for free, the car doesn’t need to run, and we pay cash at pickup. We need one of these: Title, Affidavit in Lieu of Title, or Junk Vehicle Affidavit. Call (206) 941-0612 or use our form, and read cash for cars for how it works.