Help me settle an argument im having with a friend. When you trade in a car that you still owe money on the dealer takes the value of your car, subtracts what you still owe, and that is the amount that you get for your trade right? It's as simpe as that correct? My friend is trying to convince me that I still ahve to pay the dealer back the money that they used to pay off my car, which makes no sense because they already subtracted it from my trade-in value. So to make an example using easy math, lets say my car was worth $10,000, and I still owed $5,000 on it. Then the dealer would give me $5,000 for my trade in, pay off my loan an that would be the end of it right? The only way I would have to pay the dealer anything for the trade would be if I owed more then the trade-in was worth right?