If you're looking to use your trade-in on a bad credit auto loan, there are some steps you'll need to take in order to prepare for the process. The first thing you'll want to do is get an idea for the value of your trade-in. You can visit vehicle valuation websites such as NADA to get an estimate on how much your car is currently worth. Once you have an idea, the next steps are to gather up some documents and get a few quotes. There are four things you'll need to bring to a dealer, but your state may require additional documents: Driver's license Vehicle's title Auto loan payoff amount and account information Vehicle's current registration To get quotes, you'll want to visit at least two dealerships to see what they're willing to offer. They'll do an inspection of the car, and give you a trade-in quote. If you want, you could only go to one dealer and get a quote, but having more options is the best way to make sure you're getting the most fair offer possible. If you want to trade in your car but there's negative equity involved, you may still be able to. There are a few downsides to trading in a car with negative equity you should be aware of. First, not every lender is willing to let you roll over the negative equity into the new loan, so you may have to pay the difference between what you owe and what your trade-in is worth out of pocket. Second, if you're able to roll over, you're still responsible for the negative equity � it doesn't go away. You'll be financing the negative equity on top of the selling price of the new car. Your monthly payments will increase, and you'll pay interest on the negative equity.