<prompt> Human: So a little back story so I dont feel like am idiot for what could be a simple adult question. The car I have now is the first car Ive ever had to make payments on. My last vehicle was paid upfront so Im not entirely sure how I would go about trading it in. I still owe about 5000 left on the car but it is time for a larger vehicle for my side jobs. I was preapproved for a loan and if I trade in my vehicle will I have 2 car payments or does the dealer take responsibility as part of the value of the trade in?Edit: thank you everyone! This makes perfect sense now and I know how I need to move forward  <response>: Is the vehicle worth 5k? Dont trust the dealer to appraise your vehicle for its actual worth, it is not in their best interest. Dealers like inexperienced buyers because they could lowball you and you would have negative equity. So, since you would hypothetically owe 2k you could either pay that yourself or they will pay the loan off for you which means they will add the 2k to the price of the new car. That is something you dont necessarily want because it goes towards your principal. Which would increase your monthly payments.If you are willing to privately sell your vehicle for the amount you owe, that would be a great option. The lower the principal, the less you will have to pay in interest. 