Trading in a car that I'm financing?

I recently started financing a 2015 Honda Accord in the beginning of the year with a 1.9 interest rate and a 3,000 dollar downpayment. I'm paying around 380 monthly, and still owe around 22,000 dollars on the car. I have taken a liking to a smaller 17,000 dollar car from a small dealership that has around 45,000 miles on it. How would trading in my Honda work? Given all the negative equity i have on the car.

No reasonable answer possible unless and until you determine FMV of the Accord. Trade-ins are bad news in any case, youll do better if you can sell it yourself.

1) go to trader, bring your car
2) ask trader exactly what you have asked here

You have to understand that you are trying to do the most expensive way to change cars.

This early in a new car loan, the odds are huge that your current loan balance is higher than even the retail value of your car, never mind the wholesale value, which is all that you would get in a tradein. And, to sell your car would require you and the person buying the car to go to the loan company at the time of the sale, and pay off, IN FULL, the current loan. That would likely mean that YOU would have to thrown several thousand into that pot.

Given the amount of negative equity you have, it won't work.

Its a really bad idea. You would end up paying as much or more for the lesser car even if you qualified. And you probably don't.

You need to understand you lose thousands in value everytime you trade.

They give wholesale for your trade, you pay retail for what you are buying. On 2 late models cars, that involves a $5000+ loss.

It would be a loser deal. You owe more on your current car than it is worth and a dealer would probably only allow you $15k for it on a trade. If they added the difficiency of $700 to the $17k price tag on the smaller vehicle, you would owe $24k+ tax and registration on a car actually worth about $15k. Your payments would probably increase for where they are now.