Yes, you can trade a car when you still owe money on it. The key is what is the difference between what you owe and what the car is worth. Dealers refer to this is being "upside down" in your trade.
If the amount isn't too much, you should be able to roll it into your next loan. If it's a lot, you may have to come up with some cash.
Find out what car dealers don't want you to know at www.dealertricks.com
Then they will repossess the wrecked vehicle, sell it for what they can get, apply that to the loan balance, and you will be responsible for the balance on the loan. They will sue you in court to get it and will win. Now if you continue to make the loan payments, then none of this will happen. Did you not have insurance on this vehicle?
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