Terry, I have a baby on the way and would like to purchase a vehicle that is safer and easier to deal with, logistically, for baby’s car seat. Unfortunately, I am upside down on my current car loan, owing more than it’s worth. What do you recommend for me as a course of action? Just stay with my current vehicle and deal with its inadequacies? Or is there a particular way that you’d recommend for me to be able to purchase a different vehicle?

Terry Says:  Well, I hate to get you into even more car debt.  But depending on how much you owe on your current car, and assuming you have good credit, a dealer might be in such a year-end rush to sell out inventory that they will take the older car in trade, pay off the loan — and get you a new car with more debt.  I can’t think of a better reason for doing that than needing a safe car for a new baby.  (Just don’t forget all the other expenses that are about to come along!)