I want a new car but i have a finance car?

I own a 2006 Lexus is250, and recently test drove a Honda Civic Si. I personally am looking for a manual car. So therefore i got bored of the lexus.

Now the problem is that i still owe money on the lexus. The honda i test drove is less then what i owe on the lexus. What happens to the balance on the lexus. Do they add it to the new balance or do they offer to pay the rest off? Would this also hurt my credit score?

Your net equity in the Lexus is what matters.

Yes, that is what they will do. You are currently what we call "upside down" in your Lexus so the dealership will give you wholesale value, if that, and tack the rest onto the Honda Civic, thereby instantly putting you upside down in the new car. When you drive a new car off the lot, it instantly loses value, but you will have compounded that with the trade in. Let me clarify. They will offer to pay off your Lexus, which they technically sort of are doing, BUT THAT IS NOT WHAT THEY DO, they actually tack on as much as they can get away with to the Civic. They make more money this way on the financing. So it is you who will be in effect, paying off two cars though you will only be driving one.

Your best financial move is to do nothing. Pay off your Lexus and drive it for a while. Your second best move is to sell the Lexus privately, then pay off the difference out of your pocket. That way you go into the Civic cleanly. Outside of paying off the Lexus, yes, your credit score will take a hit.

P.S. It is not at all a good thing that you still owe money on a ten year old car.

Some how, some way… The first loan needs to be paid off,… NO "they " aint going to do it… I might be rolled in to a " new " finance,… But what ever's done… YOU'LL pay it

Keep what you have.

Figure out how much your Lexus is worth. Subtract what you owe. If a negative number, you'll likely have to write a check, as most lenders no longer allow you to tack negative equity onto a new car loan (many used to). If a positive number, it goes towards the down payment on your new car.