<prompt> Human: Looks like from my calculation that I would get about 16k in trade in value which is - if I understand right - what I owe on it now. So, after paying on it for two years, I have no equity !? But I digress...Since Toyota is offering a promo with Priuss sold with 0 interest, is it in my best interest to trade in anyway and buy a new model? My objective is to lower my monthly payment and id like the features of the newer Prius, also.  <response>: So, after paying on it for two years, I have no equity !?If you are going to trade up for a new car every 2.5 years, you should get used to the idea of not having any equity. From a financial standpoint, it is unlikely to make any sense to trade up for a new car. There is a lot more depreciation in the first year of car ownership than any other year. By trading up, you are just doubling up on that big depreciation hit, which, in and of itself, is probably more than your current interest payments, so going from a 3.25 interest loan to a 0 interest loan isnt going to save you. Then when you consider the transactional costs of getting the new car tax, title, license, doc fees, etc. you are coming out even further behind. My objective is to lower my monthly paymentIf the monthly payments are a problem, perhaps you should consider trading down to a less expensive car. and id like the features of the newer Prius, alsoOnly you can make the decision of whether those new features are worth the cost. Edit: clarity 