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yes you can but it's not a very good idea, since you'll be upside down on the 2009 even worse than on the 2005 -- the monkey will still be on your back, only a bigger monkey this time.

also the amount of rollover allowed into the new loan might be limited by your credit.

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mr shiftright-- thanks for the quick reply. after posting the question, i had a chance to browse the different forums and saw lot's of similar questions and answers. another question.....would i really be that much upside down if i get a really good deal on the 09? e.g. my negative equity is about $6500. i know i can get a good deal on the 09 honda (maybe $4-$5 below msrp). would rolling the negative amount still be a bad thing? also, i have excellent credit, buy my credit union does not finance negative equity and i'm bummed because they offered me a really good rate. do car dealer finance companies (honda finance) offer good rates?

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Well you'll be down the $6500 of course because SOMEBODY is going to have to pay that car off before you buy the new one right? And then you'll be down the immediate depreciation that occurs when any new car is registered and driven off the dealer's lot. No matter how good a "deal' you got, you aren't going to be able to sell that car for more than you paid for it---it's a used car now. So that's "two down". THEN you'll be down the interest you pay on the new loan every month. You won't have any equity in this new car for a long, long time. So that's 3 ways you're down.

I'm no finance expert but I'd say you'll be down $10,000 bucks on the loan the minute you drive off the showroom floor.

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