An update: Have good and bad news.
Stopped by two dealership yesterday. First guy did an appraisal and ask me what my expectations were. I said atleast 20k, but I will consider 18k+.
KBB and Carmax offered 17k, so I knew 20k was a push. Later I got a response from the first dealer that realistically they are looking around 16k, but he can talk to his boss for 18k, but that's very unlikely to get approved. He even showed me numbers for their recent sales and it was around 19k after dealer profit.
I stopped by the second dealer, same story, 17k offer, but I told them about the new tires, roof rack and other stuff. The appraiser turned out to be a newbie/inexperienced person, so took up the matter to the big boss, he wanted to do a test drive. He loved the suv and came back with 18.5k. Even Offered zelle payment as well once offer accepted. Didn't wanted anymore hassle and so I cancelled the third dealership visit and chose to close the deal. Everything good so far.
Now the bad news. Came back couple hours later with the title to close the deal. Finished all the paperwork, handed over the keys. The payment can be through Zelle, BUT they don't have accounting dept locally, so paperwork needs to be sent over to head office in Houston, once they process it, I get the Zelle payment. I am like WHAT? I was under the impression once the paperwork is signed, I get paid right away.
Again, the newbie appraiser dont have a clue and talked to some other big shot sales manager, he showed up, I told him the concern, hes like we will pay you once the paperwork is processed. I said that clause is no where in the written contract. Once I walk out of the building, there is nothing that states I didn't get paid. He was like he didn't know what to say either. So I told him I need something in writing saying the payment will be processed in certain amount of time. for proof. Then he said write up whatever makes you comfortable and I will sign it for you.
So I added a line stating at the bottom of the statement they provided that the payment will be processed in 24-48hrs and send to the provided zelle account. He signed it right below. I am not sure if I used the right phrase or if it's even legally binding, as I clearly didn't see this coming when they told me Zelle payment was an option.
I did some research from home later last night, turns out its not unlikely that it takes few days for the payment to be processed. I am really hoping thats the case and they didn't pull any tricks. Normally when you trade in, the amount gets deducted from the new loan. Maybe that's why they didn't include that clause in the paperwork. But I am sure, I am not the first person doing this. So they could have added that to the sales contract, but now I am totally at their mercy I guess.