Trading-in a new car is a bad idea
I just got my car two months ago — a 2007 Ford Escape financed for $20,000. I went to try to trade it in for a Mustang but they were only going to give me $12,500 for my truck, which makes me almost $8,000 in the hole and my payments around $520, which I can’t afford. I have a good credit score and I want to trade my truck in and get a new Mustang. What should I do?
I don’t see any way you can trade a two-month-old Escape for a new Mustang and not have to come up with a lot of cash. Any new vehicle depreciates sharply when you drive it off the lot. While you could probably sell the Escape privately for more than $12,500, you’re not going to get $20,000. My advice: Live with the Escape for a few years and then get your Mustang.