When you trade in an old car, the dealership will usually give you a cash value for your vehicle. This amount is based on its condition and mileage. If your car has major damage, the dealer may not be willing to give you as much of a Cash Value as if it was in good condition. In fact, some dealerships might actually refuse to sell cars that have been traded in because they believe that the owner doesn't have enough money set aside for repairs or replacements.