Now you know why you should not trade in a car that you owe money on. This scenario described here happens more often than you think, and we have heard complaints about this over the years from many car buyers. You can trade in your car to a dealership even if you still owe money on it, but this can be a costly decision if you have negative equity. Learn more at The Car Connection: Car research made easy. What happens if I still owe money on the vehicle I want to trade-in? If you still have a loan for the vehicle you plan to trade in, there are steps you should take to carefully consider whether to take on new debt for another vehicle before you have paid off your old vehicle. Tip: Research your trade-in’s value so you know whether the