Tips on Buying Cars: trading a vehicle that is less than 1 yr., 2007 nissan armada, credit squeeze

Question
Here's a crazy question.  I have a 2007 nissan armada that i purchased last february.   don't like it and I would like to trade in.  is there a good time to trad it in .  I know I will loose money but is there a certain length of time to keep a car before trading it in  is is better to get rid of it sooner or keep for a few years until loan is paid down.  I want to get rid of it but don't want to loose a ton of money

Answer
Unfortunately, I can't think of a situation where one would trade in a 9 or 10-month old vehicle and NOT lose a ton of money.  New vehicles experience the most depreciation in the first year, so trading in now will cost you.  Add in the fact that the automotive sales industry is about to have its worst season in at least 15 years (which means a brand-new Armada will be more affordable due to increased factory incentives), and it's even more disappointing for the current value of your vehicle.  You have to weigh how much you're willing to lose vs. how much you dislike the Armada.  As to WHEN to trade it in, it all depends on how much you financed and for how long.  If you financed it for less than four years, and made a substantial down payment (at least 30 percent cash and/ or a trade you owed little or nothing on), then it may be possible to trade it now.  But if your loan is for longer, and you financed almost the entire amount, then you'll owe far more than it's currently worth.  That "upside-down" portion of your loan would have to be fixed with cash, or carry that balance to the new vehicle.  With the current credit squeeze, banks are less likely to carry over a balance from a previous vehicle, so keep that in mind when shopping for the new vehicle.

I guess the most important question is this: is there any way you can live with the current vehicle?  For example, if it's the cost of driving it, could you keep it but pick up an inexpensive (and economical) used car for commuting, and park the Armada?  If I were in your shoes, I might be thinking along those terms, instead of how to get rid of it at this time.  I know this isn't what you wanted to hear, but I hope it helps.