Trading down my car

[deadgoon]

Hello, all. I need some advice on trading down on my car. My goal is to get out of debt as quickly as possible.

Back in October of last year I bought a brand new 2011 Nissan Versa and financed it. I currently owe about $11,000 on the car and it is worth about $13,000 as a trade-in value according to KBB (I also have about $6,000 in CC debt). I'm looking at trading down in car to something in the $2,000 to $3,000 range. I'm looking for a car that is reliable and cheap, nothing more.

What is the best way to go about selling this car and getting a cheaper one? Will a dealership trade down to a cheaper car like that? Should I attempt to sell the car myself and then purchase the cheaper one separately? Has anyone done this and can they tell me how they did it or point me to resources on how to do it myself?

Thanks in advance for any information you can provide.

[cschin4]

You could explore trading it in and see what they would offer. Then, you could sell yourself if that doesn't work for you. But, there are some things to consider. Sometimes you are further ahead to just wait it out. Keep the car and pay it off and drive it as long as possible and then from this point foward, you will know not to put yourself into that type of position again. But, if you want to get out from under the debt and the car is still pretty valuable, then you may be able to do so.
As for buying used cars, there are lots of them. used Minivans are pretty cheap or cars that aren't so big on style. Don't get hung up too much on MPG because you will be saving yourself hundreds per month by not having a car payment.

[maat55]

If you trade it in you will get the worse deal possible. I would sell it on Graigslist, then shop for a privately owned beater.

[bjl584]

Originally Posted by maat55

If you trade it in you will get the worse deal possible. I would sell it on Graigslist, then shop for a privately owned beater.

I agree. If you trade in a car worth $13,000 on something worth way less you will take a beating. Sell the car outright to a private party, then go car shopping.

If the Nissan is your only source of transportation this could be an issue. I've always owned two cars, so it was easy for me to let one sit for sale while I drove the other one. Then I could look for a different car at my leisure. You may have to go get a cheap car first, then sell the Nissan. Financially, you will either need to 1) save up cash until this is possible, or 2) finance the cheap car and pay off the loan with the proceeds you get from the Nissan. I would pick option one.

[landon.bruno]

I think what your thought is right. But you have to be careful while checking the margins. If it goes down you will be in debt again