how to trade in a car with a car loan?

hey everyone! so i just bought a car in February of this year, but just found out im pregnant so im going to need a bigger car😅

im wondering how would the trade in process work. would the money from trading in go towards my loan then i just take on a new loan for the new car? or would it go towards the new car then they pay off the loan. i’ve been reading mixed things online. thank you!