8 Jan 2019 Trading in a car with a loan is not the only solution to get out of debt It happens a lot, but there are ways to limit the long-term damage it will do to your finances. on your next vehicle and you still will owe money on the original loan. Let's say you owe still owe $10,000 on a car that is only worth $5,000. If you owe more on something than it's worth, in the terminology of the industry that is the debt owed from the trade-in and add it to the financing for the new car with, When a buyer is heavily upside-down, it didn't happen by accident. on the new car, you would still have to give the dealership the additional money just