Recently, my 1998 Honda Passport needed a new starter.  That costed about ~$650.  They also pointed out that it needed new axels & boots.  Plus, the brakes and tires needed replacing.  And finally, the windshield was cracked.  With all of that said, it was obvious I was upside down on the repairs vs. value of the car.

I started looking at new cars.  I really just needed a good commuter car.  The ones that I considered:

• Honda Civic
  Nice car but I felt the steering wheel was too close.
• Honda Fit
  Good car and good price.  It has a lot more space than you might think.  Unfortunately, a 3 to 4 month waiting list.  I called 5 Honda dealers to just see & drive one.
• Toyota Corolla
  Ok car...great gas mileage.
• Toyota Matrix
  Good looking car and very comfortable.

I didn't consider the Toyota Camry.  I test drove one because of the my uncle knew of a good deal.  I was pleasantly surprised about the ride, size, price and gas mileage.  Unfortunately, they didn't make a good offer on my trade-in. 

After I went to test-drive the Honda Fit, I stopped by a nearby dealership to show my wife the Camry.  That dealer had a "service courtesy car" that had 9500 miles.  It was fully loaded and I was able to get it for about $7k off and a fair trade in value. 

One thing that I did learn: if you have a trade-in car that is not in mint condition, don't bring it to the sale.  I actually firmed up my deal with my trade-in sight unseen.  I was honest about its condition but they were more focused on the new car.  It also helps that it was a few minutes before they closed.