 TITLE: When Is the Right Time to Trade in a Car? CONTENT: Trading In Your Car and Down Payments\n-------------------------------------\nA vehicle trade-in may be all or some of the down payment you make on your vehicle purchase. Like a cash down payment, a trade-in can reduce the cost of your new car, which cuts down how much you need to borrow and your monthly payment.\nIf you want, you can provide a mix of trade-in value and cash as your down payment. How much cash you add will depend on how much you have on hand, but the more money you put down, the easier your new loan will be on your budget. Just be careful when tapping savings, and make certain you're not wiping out your emergency fund.\nA higher down payment can also reduce your interest rate, saving you even more money. Just keep in mind that if you qualify for a very low interest rate, it may be better to use that money to invest for your future and get a better return. END