Is it possible to trade in a car that's still being payed monthly for another car that costs more?

Question

8 months ago, my father bought me my first new car - a 2006 civic EX coupe.

I recently decided to take a break with college and I got myself a full time hourly job with great pay. Because of this, I decided to take over responsibilities of paying for my car.

I have always wanted a 06-07 Civic SI, but my father insisted on the EX for my first new car. Now that I have taken over the payments, I was wondering if I could trade in my EX for an SI. It would be about 22 grand compared to my EX which was 20 grand. I don't want to tell my father yet, so I'm seeking advice here.

I have done some research, but there are many terms that I'm not familiar with. Lease, finance, quotes, I don't know about any of those. Can anyone help me out with these terms? Am I even able to do this type of trade in? Will I lose money? How do I go about asking a dealer for this type of trade?

Any help is appreciated, thanks!

Answer 1

Your car currently will be worth about $15,000 or so as a trade in! You say you paid $20,000 and have had it for 8 months! You owe more than the car is worth right now.

If you were to trade it in, you would have to either pay the difference in cash, and come up with a down payment too, or roll the balance into the new car loan. Rolling the balance means that you will be financing much more than the actual cost of the new car. You will be paying for both the new car, and part of the one you traded!!

In other words, you are going to lose money BIG TIME!! Hondas hold their value more than most cars, but they still do depreciate. You would be better off keeping your car for a couple of years, and saving the extra money that you would be paying.

Answer 2

you can do this, but it won't be cheap. and you will lose money, alot of it unless you really know how this type of transaction works. the dealer will accept your car as a trade in, pay it off, and add that amount to the price of the car you want. basically you'll be paying in the neighborhood of 40 grand for your civic. i donno how reasonable that sounds to you, but it doesn't reason at all for me. since you don't seem familiar with how auto financing works you should visit carbuyingtips.com. this website is invaluable in helping you understand how auto financing works and in helping you not get ripped off when it comes to financing a vehicle. do yourself a favor and take the time to read the info on this website and it'll save you a lot of money, heartache, and time when looking for a car. car dealers will rip you off like no tomorrow, especially if they know that you don't know how financing really works.

your best bet, stick with what you've got, pay it off ASAP, sell it, then buy the car you want. just be patient and you'll be better off in the long run, i promise.

God Bless

Answer 3

you could commerce it in to cut back the cap value. Your superb guess may be to sell it on your community paper, on craigslist... they gained't supply you lots for a commerce on something. Leasing is an exceedingly undesirable thought until eventually you very own a agency and choose the tax break or some thing like that. in any different case it is going to value you so plenty greater money. on the tip of the hire you would be required to return it in showroom project. you would be required to accomplish all the maintenance, placed new tires on... it fairly is as much as the discretion of the hire business enterprise in case you precise cared for the motor vehicle. (ever attempt to get a deposit lower back on a leased place of abode?)If the money to purchase the motor vehicle are too intense, you won't be in a position to handle to pay for the hire the two. come across a greater least costly motor vehicle.

Answer 4

This is NOT the simple "trade" that you envision. Furthermore, you don't yet have the knowledge necessary to go into such a transaction.

I would suggest spending a lot of time learning about car buying, trading, and selling -- and sticking with your current car until you are no longer upside down.