I'm looking to trade my car in next year for a 2012 Mustang
Mustang goes for around $20,000-25,000 depending if I get new or used.
I'll owe about $12,500 on my current car which will book for around $11,000 retail $9,500 trade in so I'm a little upside down I understand, but my bank will save me $4,000 off MSRP on a new Mustang.
The thing that makes all this possible is I should have between $10,000 and $12,000 to put towards this matter when the time comes.
So my question is, is it better to:
1. Try and pay off my 6%APR loan right now, and have that $9,000 equity free and clear to trade towards the new one?
2. Pay my current loan till it's in the black again and trade the car?
3. Keep my same payments, and just put a huge chunk of cash down on a new car to offset the negative equity?
Essentially I just don't know where or when to apply the $10,000 to save the most money in the long run.
And if it helps, I don't plan on ever being upside down again, I'll finally be able to get the car I REALLY WANT, and drive it till the wheels fall off instead of keep getting stuck in cars I didn't want in the first place, but "could afford" and always regretting it.