I owe $4,924 on a 2010 Accord worth $4,000 on KBB (w/ "Good" rating and 123,000 miles). There are minor cosmetic damages from a hit and run case that was never settled. My insurance has a $500 deductible to fix them. I want to trade it in for a new car.
Aside from cosmetics, the car burns oil like nothing I've ever seen before; I have to top it off every 2,200 miles. And from what I've read, '08-12 Accords have that problem. I've spent the past two and a half years doing all I can to fix the issue with no positive results.
Additionally, the front axel's cracked and the timing belt's dry. All these things have been around since I purchased the car from a private seller in April 2016. The symptoms just didn't show up till it was too late.
I couldn't care less about the cosmetics of the car. I only bring it up because I don't know whether it would worth having my insurance pay for it (+ my deductible), the dealer pay for it (along with the mechanical issues), or I bring it into a shop myself to avoid having an accident report on the vehicle.
And lastly, my bank is the one who gave me the loan for the car, and they treat me pretty well. So having a dealership deduct the car's value from what I owe, paying off my existing loan and taxing the difference on to a loan for a new car is something I'm prepared to do.