This is what I'd do:

You've just brought a kid home from the hospital. Keep the car you just got. If you trade, you are gonna lose your butt unless you sell it privately quickly.

You are looking at the next 5 years with some major expenses. No, I don't know your financial situation, but if you were driving a Civic, you aren't taking calls nightly from the board members of the bank.

Drive the car you have, do regular maintenance on it for the next 5 years, and be happy you have a reliable source of transportation. You have other, more important things in life to spend money on versus crap for a vehicle that is losing money everyday. Change the oil in the thing, do some other required maintenance, and be happy.

Spend the other money on diapers, wipes, food, formula, medicine, doctor visits, clothes, shoes, toys, and start some sort of post-secondary education fund.




Just my opinion.