I can tell you're a Rookie to this so I'll respond like I would to my kids.

So far I've already paid off 5k with 13k left over. (Don't get into the expensive habit of trading cars every two years. Become financially wise at an early age)

Because I commute alot, I was thinking of trading in this car for the camry hybrid. (If your situation has changed then that's a consideration. However you will be trading a depreciated car for one that sells at MSRP. Calculate just how much you will save overall and that includes decreased gasoline costs but increased payments. It may be that just starting out you would want to wait as you actual costs will possibly go up considerably)

I know the price of the camry is a bit high, but I thought I would treat myself to this car because I am almost done with my RN program which means I am able to pay for it. (Graduating is a good reason to celebrate and possibly a reasonable excuse to "move up" to a nicer car_that's the intangable part of the decision process)

Actual Question: If I trade in my car....

can I goto any dealer to trade in the car and try for the TCH? (YES).

will I still get the tax cut? (It's a credit and a credit is only good if you actually pay taxes. There is also a minimum alternative tax and while I make good money and it doesn't apply to me, I understand that some folks, because of the area they live in (high mortgage expenses, high taxes, etc) can actually pay this even though they don't make a gob of money. Chances are if you're single and just starting out you probably don't have to worry about the AMT. However you do have to take ownership before September 30th to qualify for 100% of the tax credit.


will it be hard to negociate for a good price for the TCH? Expect to pay MSRP. The negotiations will be on the trade in value of your car. Go prepared (kbb.com or edmunds.com has used car values)

what will happen to the money that I have yet to pay for the original car that I am trading in? How does trading in a car that hasn't been fully paid for, for another car, work? Let's say you get a TCH for 31,589 (loaded) and they give you $13,589 for your trade in. The difference is $18,000. You still owe $13,000 so you have to borrow $31,000. (you may not have equity in the trade in). Depending on where you live you also have various sales taxes. In WV it would only be on the $19,000. I understand in some states it's on the full amount of the car, even though you traded.

is this even possible? With car dealers anything is possible. I don't know what your credit rating is, but don't get caught into the "i gotta have it" mindset and end up paying an outrageous interest rate. Don't start out life with a huge debt and car payment. Stay focused and make wise decisions. If it means waiting a year then wait a year.