Used Cars: Need help, dodge neon, mileage

Question
I am currently in the Air Force and am thinking of getting out in the next few months. I'm thinking I'm gonna have to trade my car in for a cheaper one, but I still owe on it. It is a 2005 Dodge Neon in good condition. I have two questions. 1)If I trade in my car for a cheaper one, will I still have to make payments on the Dodge? Question 2 does it make a real difference what the mileage is for a particular car in terms of quality?

Answer
Hello Kristopher,

If you take your car into a dealership, they will trade your car in at what it is worth to them at the time (being a dodge Neon your amount owing will probably be more then what the car is worth) for example, lets say you owe 7000 on the car, to them its worth 5000. There is a difference of $2000,  lets say you find a cheaper car you like for 5000, they will trade your car in at 5000, give you the 5000 car you like and add 2000 to the cheaper car, as you are responsible to pay the difference of amount owing on car to what the car is worth... after some homework you will probably find that A: its better just to keep the Neon then to down grade to a older car and still have to pay what you owe on the Neon.  Or B: you might be able to sell the Neon privately for what you owe on it, thus leaving you debt free and ready to purchase another used vehicle!

Hope this helps!