Got pre approved for a car loan but what do I do with my current car and car loan?

Ideally I'd like to trade it in but I was approved up to 20 thousand dollars and Id like to buy a 14 thousand Ford Focus. My current car is financed but I just hate it and a year of ownership has been miserable. Am I able to trade in the car using the pre approval?

So how much is your current car worth, and how much do you still owe on your loan? If it's worth more than the loan balance, sell or trade it and pay off the loan, and use the remainder as a down payment on the new car. But… If it's worth less than the loan balance, you are "upside down" and have "negative equity" which, if you trade, will be ADDED to the cost of the new car and new loan, assuming it's not too much. If the negative equity is too large, you won't be able to roll it all into a new loan. You'll have to come up with cash.

Be aware that your bank or loan company will only loan you an amount not much exceeding the "book value" of your new car. They won't lend you $20K for a $14K car.

If you owe less than the trade in value then you can make the trade easy. If you oe more than its worth you can still possibly trade it in but will have to get different financing with someone willing to give a loan for more than the new car is worth. Not a real smart thing to do. You should keep it until you owe less on it than trade in value then buy something else.