Tips on Buying Cars: Trade in/buying another vehicle, mazda protege, toyota tacoma

Question
Hi Robert: This is a really dumb question(sorry). I own a 2002 Mazda Protege and the payoff on it is about $1000.00 more than its trade-in value, roughly $7000.00. I don't understand the trade-in process. If I finance a new Toyota Tacoma truck don't I still owe the balance due on my Mazda ? I would be grateful for an education in this car buying stuff. The Mazda was the first new car I ever bought. Thankyou..Glenn

Answer
No problem it is easy stuff all you need to do is to trade the vehicle in and attach the the payoff to the new loan for eaxample. You buy a 10,000 dollar car and you get 5,000 for your car now you have 5,000 they tax that figure ,then you take the payoff of 6,000 and attach it to the 5,000 for the total. I hope this helps you. Please leave feedback and if you have another question dont hesitate!