Tips on Buying Cars: 7000 upside down, roll in or wait?, power steering pump, repair bills

Question
My 2001 SUV has almost 100k miles on it and i still owe $16k. Its expensive to fix and needs a new power steering pump, new tires and has a leak inside no mechanic can find the problem. I could trade it for a 2006 w/ only 8,000 miles and warranty, but the dealers "best trade is $8600" i would have to roll in the 7,000 i'm upside down and have higher car payments than what i have now, but no worries  over repair bills. My 2001 won't be "paid off" for 2 years and i would take the risk of more repairs, but have a lower car payment and something worth value in 2 years to use as a downpayment. What's the way to go?

Answer
Hi Stacy!

I apologize for the delay in getting back to you. Your question is certainly a matter of opinion, and as such, I will gladly give you mine. Your '01 will NEVER be worth as much as it is right now! Additionally, it's going to cost you more and more to keep it. I would dump it and move on to something newer with a warranty. Good luck!