Can I trade in my used car for a cheaper one at the same dealership?

Hello. Six months ago, I purchased a 2008 Honda Accord. I owe $20,200 on it. Nada and KBB say the retail trade-in value is up to $19,775 for my model. I want to trade it in for a cheaper loan around $5,000, so it's easier to pay off in a short amount of time. Basically, I made a stupid decision and bought a car I can't afford. I also am determined to get completely out of debt.



What do I do? I do have $4K I could pay down on the loan prior to trading it in. Does that help me any? Or use the $4K to pay for the new-to-me car in cash?



HELP!Can I trade in my used car for a cheaper one at the same dealership?
Possible, but the only one who can say for sure is the dealership. Go talk to them.
Your $4K will be use to offset the negative equity on your current loan.

You can trade in the Accord, get about $16K for it, buy a 5K car, add the difference between your loan amount and trade-in ($4200) and then subtract your $4K down payment.



Unfortunately, you are so far underwater, the only way you can do it is with that $4K as a down payment. No lender will finance $9K on a vehicle work $5K, retail.



The end result will be you having a POS $5K vehicle and zero savings.Can I trade in my used car for a cheaper one at the same dealership?
If you really need to sell, your best bet would be to sell it privately and pay off the loan. You will get more money selling that way than if you trade it in.
If the deal is good for the dealership they will jump on it. But if they cant make a profit off your trade in then they wont touch it.Can I trade in my used car for a cheaper one at the same dealership?
Lol bet that dealer gave you the "it'll hold it's value forever, matter of fact some Hondas actually APPreciate!"(I've actually heard this lol) Pathetic.



Anyways, there's no way a dealer OF ALL PEOPLE will save you any money now that you've bought the car. I've had this same idea, and I've done my homework, as well as the fact I USED to sell cars.



Best bet, pay as much as you can every month to get a handle on the deficit(it's actually not that bad, most people are thousands upside down), take excellent care of the car, and when you DO trade it in again, don't let the dealer walk over you and offer you $3,000 for a $10,000 car.
Any car you get for $4k to $5k is going to be going into a shop quite frequently.

So you either have to pay your Accord payments or pay hefty repair bills.



You could put your $4k cash into paying down your loan and then refinancing the remaining $16,200 at a lower more affordable monthly payment.



Or you could sell the Accord private and use some of the $4k cash you have to pay the difference in selling price and what remains on the loan. Then go find a car you like and is more affordable for you and get a new loan.



I don't think you'd get anything but screwed over by trying to go back to the dealer where you bought the car and trade it for something cheaper. After all, they managed to sell you a car you can't afford already!