Is it possible to finance a car for a number of years, and upgrade to a newer model in the middle of the financing period?

I'm thinking of either getting a new 2014 or 2015 Fit, and will finance it, but I'll probably want to upgrade to the 2016 model. How will I be able to proceed?

Sorry if this question is stupid. This will be my first NEW car purchase at a dealership, so I don't really know how these things work. The car I currently have was bought privately.

 

You could upgrade an hour after you leave the dealership if you wanted to but know that you will be still responsible for the cost of the loan.

For instance, if you bought a car today and it was $20,000 out the door (amount financed) and that meant that your payment would be $333 a month (for 5 years) and after a year that would mean you would still owe $16,000 on your loan.

If your car was only worth $15,000 you would be responsible for the $1,000 which they could lump onto the cost of your new car loan. If your car is worth more than the remainder of your loan then that remaining value will be paid to you.

Keep in mind, new cars lose value very quickly once they leave the lot so more likely than not you will owe more than your car is worth after such a short period of time

 

that could be a huge waste of money if things dont go your way. best bet is to wait out till the 2016 and buy that.

 

If you were to do this, the Fit would be the car to do it with. With gas prices likely to rise in the next two years, gas efficient cars like the Fit, will be in demand out in the used car market. This will help stave off some depreciation.

But it is confusing why you would "upgrade" from a 2015 to 2016. Why not wait until there is an actual incentive to upgrade?

By the way, Waizzz's figures are off, unless he's intentionally not accounting for interest.

 

My figures were obviously hypothetical and for the purpose of the exercise lets just say my (amount financed) included interest.

 

Your amount financed is fine. I was talking about the monthly payments and principle balance after a year. With a 2013 Fit and Honda's 0.9% rate they've got going now, your figures won't be far off. But for 2015 models, I'm sure the interest rate would be higher, which would throw your figures off. Not a big deal for this discussion, but just thought I would bust your chops anyway.

 

Regardless of what you two decide the OP is just pissing away a lot of money. I believe most Fitters here purchase with idea of keeping the car for quite a few years or at least until paid for before going out and trading it in for more debt. But some people must have the latest and greatest and lots of debt. JMHO