“Despite what dealerships try to tell you, taking on another loan is not a good way of handling this situation. What the dealerships are offering is to take what you owe on your current car, minus whatever small amount of trade-in
value they will give you, and roll it into what you owe on the new car. This is how that would look:
Let’s say you currently owe $9,750 on your Maxima
that is worth $5,000. The dealer gives you a trade-in value of about $3,000. That leaves you holding a bill for $6,750, plus whatever the new car cost is, plus financing charges. No matter how you look at it, this is an awful deal.
The best thing you can do is pay the car off as fast as you can. From there, you can sell the car to recoup some of your money or hang on to the car for as long as possible and enjoy not having a car payment.