No, you can trade a used car for another used car
Yes.
Sure, but you will not get near what the new car is worth.
Yes it's possible. It's what we called "trade-in".
Only if you can afford payments for a new car and your used car is in very bad shape.
is there a tax credit when trading in your used car when purchasing a new one
Sure but you are going to take a real loss on the deal. The selling dealer will give you wholesale for the new car and you will pay retail for the used car.
Sure you can trade it in. You will get the wholesale price of what it is worth in trade. Now if you are referring to a new car you bought and you want to return it for another car, the answer is no & yes. You can trade it in but the same thing applies. It is now a used car and you will get that used car price. Just let them repair it under the warranty.
yes you can obviously
Used cars give you know value, unless they are antique (as depreciation reverses). Buying a new car is good option.
Most likely a used car lot will give you more for a used trade in. New dealerships like to deal with new cars only and will pay far less like $200-$300 for every thousand you car is worth and if car has over a hundred thousand miles the new dealership will probably not even accept it at all as a trade-in. A used car lot however will most likely give you a better value from your used car and a better trade in value because they deal with used cars and they are most likely going to resale you car and make some profit which is good for him.
A brand new car that you have purchased is a used car the moment you drive it off the lot. Albeit a used car with very low mileage. You exchange it just like any other used car. Sell it, or trade it in.