The used car market was so upside down that it was cheaper to buy new than used for a time. I went through the same thing with my teenager. The problem is that the market is starting to correct itself and I can only see you losing a lot of money if you try to sell it this soon after buying it. Is it possible to get another job as a server on the weekends or something? A used car that is reliable is going to put your payments back near where they are now. You will be on the hook for repair cost also. At least you have a warranty with what you have. Tag and insurance maybe cheaper but I'm assuming your parents take care of that. I personally would stick it out and hope to up my income. I don't see you being able to afford any car on that budget.