Tips on Buying Cars: Trade in, mustang cobra, v6 mustang

Question
Hi. I want to purchase a 2006 Mustang GT listed at $20,599 with 19,188 miles on it but I'm not sure if it is too soon to do so. Right now I have a 2006 V6 Mustang with 18,965 miles and I owe $11,864. Its in great condition with no problems whatsoever. I just want more HP! I've had it for 6 months with no missed payments and my credit score is just shy of 700. What should I plan to get for trade in? Also if it is too soon to look at a trade-in when is the ideal time to do so?

Answer
Lon,
The time to trade in - or sell - is when you owe less than your car is worth. Meaning.. if you trade or sell that v6 model - will you be able to pay it off in full.. maybe even profit? - This keeps you from getting WAY upside down on your next purchase. As for what value your car has.. it will depend a lot on condition and options.. and you will probably get a lot more for it by selling it yourself... estimated values:
Private party sale: ~13k or so
trade in: ~11k

Those are ball-park figures based on kelly blue book.

I would like to recommend taking a peak at the 2003-2004 Mustang Cobra if you are really into higher HP... the newer models (05+) are substantially heavier and handle worse... not to mention the cobra's push out 390HP and have the potential for a lot more with just simple bolt on modifications. (just a thought).

If you can get 11-13k for it by selling or trade in... feel free to upgrade if you don't mind taking on the extra 10k of debt. But make sure you realize that you are adding a lot more debt - and your car is not too far from being paid off...