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I would say that you will get the most out of it by returning as much back to stock as possible and selling the car and parts privately. it might take a while to get everything sold, but it will most likely be worth more than a dealership will give as trade in value.
on the other hand, if the dealership gives you a trade in value that is only slightly lower than what you think you can sell the car for, then go for it if you don't want the hassle since you can instantly get rid of it instead of waiting for the right buyer.
either way, return as much back to stock as you can. and I doubt the dealership will care you painted your headlights as long as they work.
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