ok, i currently own an 05 coupe AT with 10k miles, and recently ive been thinking about trading it in for a 6mt.

well, kbb lists my trade in value at $32,950, and when i look at my loan statement, it says payoff amount as of 8/19/05 as 29,000, so does that mean if i trade in my car and get 33k for it, does that mean id have 4k to put down on the 6mt??

i told one of my buddies my new plan, and he mentioned something about me being upside down and how i havent even started paying interest yet...

how can i be upside down when the "trade-in value" of my car is worth more than i currently owe on it??

btw, my interest rate is 8.5% over 72 months and i bought the car for $39,710

i found a 05 6mt in TX for 32,950, and if i did this whole trade thing, the way i thought it would work, it would be like an even trade. only thing is id be losing nav and xmradio.

 

Hmm, you paid $39,710 for the car and you owe $29,000. Did you put $10,000 down?

Yes, that's exactly what it means.

If the car is worth more than you owe, you are NOT upside down.

Many people do not put a significant down payment on a car. When that happens, they are upside down for some time. Your friend is thinking you are in that situation.

 

dave is right^^

if you're gonna go with the ride in TX selling for th same price a your trade-in (and the car is being sold by a dealer) it should be an even trade, minus taxes (i believe you don't pay full tax on the sale - here in WA sales tax is 9%, but for a trade in you only pay 1% on the difference).

however, if you wanted a comparable car (w/ nav etc)... give us a kbb price for a comparable, and the amount you put down on the current car. that would be enough info to figure out your new payments.

 

Assuming you can get $33K on a trade or sale, you will have paid $6K to drive 10,000 miles.