Trade in my car upside down?

I have 2013 civic and I want 2015 optima. My car value 12000 and I owe 15200. That's 3200 upside down? I like my civic but the thing is it's been giving me lots of electrical problems (warranty available) i've take the car about 13 times to diffrent dealer Honda and they only took me 2 times to check my car the rest send me home. They say I have to take the car when it's happeing but I take it when the problem not happening… Last week i was taking the car since it was causing the problem on my way but I get there and it stop so they send me home… And I'm tired of this back and forth they won't fix it. At all so I want to trade it in… I have $500 for down payment for next car… Is it worth it

There are ways to finance a new car even when you owe more on your existing car than what it is worth but I do not recommend it. The excess balance will be added to your new loan.

Having a new car for a year or 2 just covers the depreciation. If you get a new car that cycle starts all over again and you have to pay it all over again. To make financial sense you should keep a new car for AT LEAST 4 years, and may places suggest that you keep it for at least 5 years.

It seems from your explanation that you have a loan with high interest and a long term. If you have always been on time with your payments I suggest that you contact the people that financed your car and ask for a lower interest rate. If you were late- even once- then this won't work. The bad side of this is that with a new contract you will start at "zero" again and the interest you pay will probably be more than the principal… Again, for at least the first year.

While you are talking with the financier ask what the payoff is on your car. You may find that the payoff is significantly lower than what you think you owe. Take the payoff information to the new car dealership and make your deal… But it usually has to be done within a very short period of time AND the new dealer has to agree with your valuation based on industry guidelines which is almost never the case.

Keep your car.

You'll have to pay off the car no matter what you do, some new car deals will take the 3200 and add it to your new loan when you trade it in, but that will increase the price of the new car loan by that amount. Best would be to wait until you aren't upside down so you don't spend all that money for no benefit to you.

You should get online and contact the Honda Corporate complaints site, see link below. And get some help from their higher level customer service people to fix your car.

http://owners.honda.com/...-relations

You would probably not be able to trade given you are so far upside down.
You would need about $3000 in cash to trade.

Your car is under warranty. Get it fixed.

If you are upside down and don't have the money to pay if off, and IF they take it as a trade-in, the will add the difference between the amt you owe and the trade-in value (which might be less than 12000) and add that on to the new car loan amount