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Trade-Ins: What Does ACV Refer To?
By Jillian Palmer - April 4, 2013
ACV is the abbreviation for Actual Cash Value. This term refers to the wholesale value assigned to a vehicle at trade-in, repossession or purchase. An ACV is a vehicle appraisal based on valuation guides and adjusted to accommodate necessary reconditioning costs. There tends to be confusion at times whether the trade allowance and trade ACV should be the same amounts. A trade allowance is the credit amount a dealer provides to the customer for the vehicle they are trading in. The ACV is what the vehicle is worth and can be more or less than the trade allowance.
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