Dear Terry, 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? -- MissyDear Missy, 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. This week•Gas prices down but hybrid research up•Can I trade my new truck in on a Mustang?•What if my son steals our new car?•Why won't Ford pay for my blown engine?If you have a question for Terry, e-mail him at Driving for Dollars. Save money on your car -- sign up for Bankrate's new weekend Car & Money newsletter advertisementRelated Links:7 best off-to-college carsNational auto loan averagesWhat changes auto loan rates?Related Articles:All new cars for 20105 steps to 'clunker' dealTake the 'cash back?'
Dear Terry, 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? -- Missy
Dear Missy, 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.
If you have a question for Terry, e-mail him at Driving for Dollars. Save money on your car -- sign up for Bankrate's new weekend Car & Money newsletter