Trade in a car & buy a new one

Most likely you would create a journal entry.  You would go to chart of accounts and create a new equity account for new vehicle.  Then you would create a journal entry to move the equity to new vehicle, any remaining equity would be recorded as a loss and consult an accountant.   You will also need to create a liability account if there is a loan on new vehicle. 

Thanks for your help. Can you give me more details on creating the journal entry to move the equity to the new car? The new one is worth more than the old one so there is no loss. And there is no loan since the car has been paid for in full. Do I need to do anything to the old vehicle in the chart of accounts?

@bettyb3 

"The new one is worth more than the old one so there is no loss."

Loss is determined based on the amount received for the trade-in and the depreciation taken.  It is not related to the value of the new vehicle.  To enter this correctly, you will need to know:

1) Purchase price of new vehicle

2) Original cost of old vehicle

3) Trade-in amount received for old vehicle

4) Accumulated depreciation taken on old vehicle

If you don't know the amount of depreciation taken on the old vehicle, then the best you can do at this point is to enter the new vehicle and let your CPA/tax accountant remove the old vehicle.  If you know the amount of depreciation taken, the journal entry looks like this: