Tips on Buying Cars: Trading Down, subaru outback sport, subaru outback

Question
I am currently $3000 upside down on a loan for my 2009 Subaru Outback Sport because of the previous trade-in. I want to lower my monthly payments of $400 and would like to trade my 2009 for a 2006 Outback wagon with REALLY low miles. If I refinance and do this-my monthly payment will be $340 and I will only be $1000 upside down. This 2006 is the car I want, need and is the most practical as we are expecting a baby. Do you think this is an okay decision? I am not taking on anymore debt, have excellent credit and am reducing payments. I just get sneers when I say trade-down. Please advise.

Answer
Hello Krystal, I think your making a good decision, One, the brand of car your doing this with is very reliable and who cares if it's 2009 or 2006, it's transportation. I wish more people could be as confident as you when it comes to a budget over a car. Very Smart.