They always offer you a little less than what they think they can get for it should it go to Auction. Usually they will put the car on the lot for $6-7k more than what they bought it from you hoping to make $5K. If you are getting more than that they are making it up on the other end with the new car. If they are offering you 40k, you will see it on the lot for $45-47k the next day. You can make more selling it yourself but it takes time and if you are in a state that exempts you from paying tax on your trade in, you lose that too. Your $40k trade is actually $42,400 in a 6% state tax state. Not saying thats much better but if selling it yourself know that youd need to get at least that to break even with trading it.