I have a vehicle that has an $18,000 trade in. Payoff of loan is around $12,000. That leaves $6,000 in equity. How many dealers would actually want to work with me on trading down to a car that is in the $10,000-$12,000 range and not completely bend me over a barrel on my trade in value? Normaly you are trading in something worth less than you are buying. Or in the worst case possible, you are are trading down and rolling in negative equity. How (well) does it work to roll in positive equity on a downgrade? Alternative is to make a trek to the nearest Carmax and just sell it outright to them, but if I could I'd rather make one stop and make the most of the tax savings from the trade in.