I know financing cars is for poors but I need an adult to tell me the best option here.

I need a bigger vehicle for the family. Current vehicle owe $17k with about $25k trade in value. I have the cash laying around to pay off the old vehicle or put it towards the new vehicle.

Which will save more money in the long term? Is there a real difference between either option? I’m assuming the interest rate of new vehicle will be a lot higher than current vehicle but to me it seems like it’s really the same difference whether I spend $17k to pay off old car then trade it in or trade in as is and bring $17k cash to the dealership for new vehicle.

Halp!

He owes $17k and the vehicle is worth $25k

i don't think it makes a difference.

I'd probably just finance it and then figure out what to do with the money you have. Guess it depends on the interest rate the manufacturer is offering.

just being money to dealer.  It’s exactly the same as paying it off only they are going to do the work.  You’ll sign that they can receive the title in their name and that’s it.  Paying off car and waiting for title is pain in the butt.

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This if your state gives tax credit for trade.

What is the current and expected interest rate?

Probably 0% if you bought it a few years ago and 5.5% if you have good credit. If so you are commuting the loan to a much higher rate.

Personally I'd get by with the smaller vehicle until the current one is paid off or interest rates subside.

Let's assume the new vehicle is $60,000, and ignore fees for simplicity since they will be the same:

You have a vehicle worth 25k with a 17k loan.
You also have 17k in cash.

Option 1:  Pay off vehicle.  Trade in vehicle with no loan.  You get 25k for the trade, reducing the taxable sale price of the new vehicle to $35k.  You have a new loan balance of $35,000 at your new interest rate.

Option 2:  Trade in vehicle with loan.  You get 25k for the trade, reducing the taxable sale price of the new vehicle to $35k.  Dealer pays off the loan on the trade, and you put the 17k cash as additional down payment.  You have a new loan balance of $35,000 at your new interest rate.

Option 3:  Trade in vehicle with loan.  You get 25k for the trade, reducing the taxable sale price of the new vehicle to $35k.  Dealer pays off the loan on the trade, and you have a new loan balance of $52,000 at your new interest rate.  You still have 17k in cash, but you financed more at the new rate.

Option 1 and 2 are the same net effect.  There is no benefit for you to pay off the vehicle yourself first.

In Texas, the trade value for reducing sales tax with a trade-in is not based on equity, but the trade value of the vehicle alone.