some banks wont do it, but a lot will. as long as you can swap the car that you are paying for, for something that is worth what you OWE on your loan, then the bank will do it.

lets say my car is worth 10-11k. i need to find a car that is worth the same amount and someone that is willing to trade it. so if someone offers me an integra, no can do. but lik i stated above, 03 wrx, 00' s2k, 00' audi tt, these all fit in pretty well, so they are doable and negotiable with the bank. i will be speaking with my bank tomorrow so i can post more specifics on what they tell me because i know a lot of people have questions about these situations with cars that have loans on them. but all in all i will bsasically be looking to have my bank trade titles with whatever i am trading for.