O/T Someone explain trade ups to me
 

Ok this has me stumped. I'm talking trucks and stuff here. I've seen several people with new trucks, lets say an 2002 model, they trade them in on a 2003 and say they saved money...how? Take mine for instance.....2002 FX4 Supercrew....got it for 4yrs with very little interest. Well now Ford is offering 0% for 5 yrs I believe. Would it benefit me trading up? Or just end up owing a lot more.

Two ways that I can think of to save when trading up.....


1) If you are currently paying an interest rate of 8% (random rate) and you get 0% on a new one. You won't pay any interest money and you'll have a newer vehicle.....better resale.

2) In my case I can save money by buying new for tax reasons with my business.

Buck

You might be able to save money on a monthly basis, but you'll loose on trade in value.

yeah thats what I was thinking. I am not upside down or anything on my truck, the only reason I'd trade is for the new '04 F150 in October. I just have seen many people I know trading up but I have been raised thinking that only gets you further and further in the hole. I have a friend that brags a lot that he's owned vette's, etc etc. only because they have been financed for outrageous amounts. I guess my best bet is to keep what I have and get it paid off quick like I'm trying to.