Can I trade in my car with a loan on it for a different car?

Your $7,000 down payment went to lowering the amount you financed on that car. So, you said you bought it for $17K, put 7 down, so you financed $10K (roughly).

How this will work is the dealer will appraise your car. Yes, they do lose alot of value the 1st year. I'm not sure where the other person who answered this got 50%, you shouldn't lose that much unless you put a ton of miles on the car and completely trashed it. But, you will lose a decent amount, 20 - 30%, maybe a touch more.

Anyway, lets say the dealer appraises your car for $13,000 and you owe, let's say $9,000. That means you have $4,000 in equity. So now you buy a car for $20,000. That $4,000 in equity can be applied to the new deal, meaning you will be financing roughly $16,000 without putting any money out of your pocket.

I'm sure you already know this, but it's not the wisest thing to trade a car after only a few months. Not even great to do so in the first year or two. Cars lose most of their value in the first 3 years, with the 1st year being the worse. The only way to get your money out a car these days is to hang on to it for awhile.

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Yes, it is absolutely possible to trade your old car for new one. The amount of car loan that you are still supposed to pay i.e. 9 k minus the value of your old car will added to your new car loan.

So, this means you won't get any amount that you paid as money down on your older car. As a matter of fact, when you buy a new car, you will have to make large payments so that you avoid the risk of being upside down.

So, think well before you go for a trade-in. I would suggest that you avoid it because you just purchase this car. And, there is absolutely no point in wasting the down payment amount.

You will still owe the $8,000 plus the value of any new car you purchase. You can sell the car and pay off the loan or ask the dealer to give you a credit toward a new car purchase, but dealers often depreciate a car by about 50% the second it leaves the lot.

That's not how it works. In a trade, your current loan is paid off and you get a new loan for the new vehicle.

Yes, you can trade in your car, but you won't get anywhere near what you paid for it, and you will end up owing more than it's worth on the new car.