Can I trade in a New 2006 car that I purchased on March 15th of this month already?

Question

I just bought a 2006 Ford Focus on March 15th of this month. It was a bran new car and even now it's still farely new cause i've only had it for about 4 months and it only has 6,000 miles on it. My my question is, can I trade it in for a used older model car and just have the difference added into my new loan that I finance with the old car?

Answer 1

Can you? Yes. The dealership and finance company will be happy to do it, if your credit is good enough and you're buying another new car.

Should you? Absolutely not.

When you take delivery of a new car, it depreciates a tremendous amount. The reason is simple: why would anyone buy a car from you with only 100 miles on it, when they can buy a new one for almost the same amount? The assumption is that you wouldn't be selling it so quickly unless (a) something was wrong with it, or (b) you were desperate. In the first case, they don't want to buy your problems, and in the second case, they know if you're desperate you'll accept less than the car is worth.

You're obviously not doing this to save money -- the 2006 Focus is not an expensive car, and with the money you'll still owe on it after trading, a cheaper car would work out to the same financing amount most likely -- so you either hate the car, or are having problems with it.

If you hate the car: well, you've learned a lesson about how to purchase big expensive things, but in the meantime you have a nice car that's still under warranty. Enjoy it as much as you can; things you hate now won't bother you much once you get used to them.

Assuming you financed for 5 years with no money down, expect to keep the car for 2-3 years before you can sell it privately for what you owe at that point, and a bit longer if you just want to trade it in.

The next time you're thinking about buying a new car, rent one for a week or two; in the short term it's expensive to do so, but in the long term it saves you a lot of money and aggravation.

If you're having problems with the car: take advantage of your warranty, and keep trying to have the problems fixed. Be aware of the lemon laws in your state, and keep full documentation; if it has a chronic problem that can't be fixed after the minimum number of visits and within the allowable time period, they may buy the car back from you -- but don't count on it, and you may need a lawyer.

Good luck.

Answer 2

Truthfully, i would wait a couple more months just to make sure your decision is firm. Remember, a vehicle is just a hunk of metal with paint, after a few months you may be able to see it for what it really is; simple transportation! You can keep the vehicle for a whole year and probably lose the same amount compared to trading it in tomorrow.

Answer 3

Yes you can trade your car already. but it would be unfair for you to trade it in that quick. you should atleast give 2 to 3 year before you trade it in to have an even value of the car you bought. or you lose a bit of the car value you bought.

Answer 4

depends on what the value is now on the car and how much the dealer is willing to pay for the car the difference will be added to the car you will get

Answer 5

You really don't want to do this. The dealership will rake you across the coals. You will lose thousands of dollars on the trade in. Please for the sake of your finances try to make it at least two years and then try to sell it yourself for what you owe on it.

Answer 6

You can, but you'll be upside down on the deal (you'll have financed more than the car is worth.)

Answer 7

Yes but it will cost you big bucks in the long run.

Answer 8

youre going to lose alot of money bad idea