This is the amount of credit the dealer is giving you for your trade-in, after taking into consideration the loan balance on your trade-in. Depending upon the amount of your loan, you will have either "positive trade equity" or "negative trade equity." (See "Examples of Negative and Positive Trade Equity" earlier in this chapter.)

The net trade-in allowance for your vehicle is the dealer trade-in amount less any amount owed on the vehicle you are trading in.

The agreed-on value of a vehicle being transferred by the customer to the dealer in conjunction with the lease or purchase of a new vehicle, less the outstanding balance owed.