Clark has a special warning for you if you're looking to trade in your old car for a newer one. It's no secret that some dealers are closing their doors because of sluggish sales. If you're wondering what that has to do with you, read on.

The problem is that many people trade in their existing car for another one before they finish paying off their loan. If the dealership is in financial trouble, they may not pay off the loan on your behalf. Then you're responsible for the payment on a new vehicle plus the balance of the loan on the first vehicle you traded in.

The Wall Street Journal reports Bill Heard Enterprises is among the dealers facing financial troubles that could lead to a scenario like this.

So, how do you protect yourself?

Well, for starters, let's take a step back. Why are you trading in a car you haven't finished paying for yet? That's a bad financial move. You should consider holding onto it. If you simply must get rid of it, sell the vehicle on your own to a legit private buyer to help pay off the loan balance.