<prompt> Human: I currently only a 2012 Toyota Corolla. I estimate I have between 3,000 - 3,300 in equity in the vehicle. The outstanding balance is owed at 0.I recently started looking at new 2016 Toyota Corollas in my area and I am confident I can get a 2016 for roughly the same price I paid for my 2012 with 0 again.Now my question is do I use my equity to get a new car and lower my monthly payments? I have 19 months left on my existing so I would have 41 months with a newer model. I am willing to stay with a Corolla for a few more years.What are the common pitfalls and problems with this? The one thing is if Im overestimating the equity in my vehicle as I have not had an appraisal done.  <response>: Constantly buying new cars is a terrible idea from a PF perspective. Ideally, you stay on your current model for 19 more months then have NO car payment after that. 