Generally you get loan value, particularly from the inflated values from Kelley that are used by state and local governments to tax your car and have unrealistically high values, in my opinion. Also, the Explorer value has declined due to the tire problems, even though the vehicle may not be the problem. Take it somewhere else or sell it yourself. The dealer may not want you vehicle at all, so he could be offering you a low value. It is a free market, he can sell you your new BMW at $10000 over list and give you $50 for your Explorer, and there is nothing wrong with this if you close the deal. It is up to you.