: Before setting a budget or taking any other steps, if you plan on trading in a car, you must know its value. Take your car to Carmax where they will appraise your car and make you a no-obligation written offer. You'll have 7 days to accept the offer and sell it to them for cash or a trade-in OR you can use that written offer as a negotiating tool with other car dealers. At a minimum, you this will give you an idea of what sort of downpayment you might have or, if your car is in great condition, you may be able to get enough for it to ultimately pay cash for your new to you car. Make sure to read all of the Carmax tips on what to bring, the FAQs, and watch their videos on the appraisal process.