Should I trade in my financed car for a cheaper one?

[Nick]

Here is the situation: I have been making payments on my car for a little over a year and owe around 15K on it with its current KBB value being 16K or so. I am not in any financial trouble and have good credit but would like to get a cheaper that is a lot better on gas and will lower my insurance payments. I don't wanna go through the hassle of selling it myself so would it be wise to trade it in? I was thinking about getting a car that is prices around 12-13k, how will this work?

[Mackerel & Cheese®]

Sure, you could trade it - but they'll just add the cost of the new one onto the loan for the one you have now, so it won't be any cheaper.