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I was wondering if dealers will take a trade-in for one of their used cars.  I have a 2000 Dodge Neon, and I'm thinking about recent Mercury Grand Marquis, such as 2006, but do not know if dealers take a trade-in for a used car.  Do they do that, or only take trade-ins for buying new cars?  

Depends on the quality of the used car.

Mileage also matters.

Here's a great question you could ask yourself,and anyone esle in this same situation-

If today was the first day,YOU saw your car on a lot,would YOU buy it and how much would you be willing to pay for it?

Now,remember this.if you would be willing to pay  six thousand dollars for your car usually that menas the dealership paid $4500 for it.

The dealership HAS to make money to stay in business.

So expect you Neon which is NOT a high volume resale car unlike a Toyota Corolla or a Honda Civic to get you a relatively disappointing offer from the used car dealership you go to.

Also,you say you want a Mercury Grand Marquis as a new car.

That Neon,for all it's bumps and problems,gets really good gas mileage and has about a ten gallon tank.

That Mercury Marquis in the city will get you about sixteen miles per gallon,on a good day and has.I believe an over twenty gallon gas tank.

That's over sixty dollars a tank full at current gas prices.

Mercury's are kind of hit or miss on electrical problems as well.

Who knows,you might get a good one though.

A 2006 Marquis in good condition will still cost you over 18 grand.

And that's with someone willing to deal.