You do not enter the outstanding loan amount when you sell an asset like your car. The deduction from the sales price is your "cost basis" in the car. The "cost basis" is typically what you paid for the car, less any depreciation on the car.
Indicate during the interview questions that you disposed of the vehicle by trade in during the year. TurboTax will lead you through the questions needed to properly calculate any gain or loss.
Because you used the car partially for business and partially for work, TurboTax will ask about business use versus personal use. Based on the information you provide, TurboTax will calculate the percentages to apply when calculating any taxable gain or loss, and whether any gain is taxed at ordinary rates or capital gain rates.
IRS Publication 463 has the rules for the business vehicles, including a section trade-in at this link.
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