In general, cars depreciate exponentially, while you are paying them off sub-linearly (because you are making constant payments, but initially very little is paying of the principle). So you are pretty much guaranteed to always have negative value in them, unless you paid cash for the vehicle, or until you have paid off the loan. Thinking of a car the way you might think of a house, or any other "investment" is generally not going to work. I just look at the cost as what I need to pay to have use of the vehicle--sort of like "renting." If this bothers you, then you might want to find a car that holds its value better next time. But if you plan to own the vehicle for a while, I wouldn't worry about it too much; just try to keep the payments within your means.
Your best bet is to refinance to as low an interest rate as you can get. I've found credit unions to be much better than banks or other car lenders. You'll get your credit score up before you know it, and then be able to afford a lot more car for the payments, or a comparable car for much less.
@victor7 wrote:In general, cars depreciate exponentially, while you are paying them off sub-linearly (because you are making constant payments, but initially very little is paying of the principle). So you are pretty much guaranteed to always have negative value in them, unless you paid cash for the vehicle, or until you have paid off the loan. Thinking of a car the way you might think of a house, or any other "investment" is generally not going to work. I just look at the cost as what I need to pay to have use of the vehicle--sort of like "renting." If this bothers you, then you might want to find a car that holds its value better next time. But if you plan to own the vehicle for a while, I wouldn't worry about it too much; just try to keep the payments within your means.
Your best bet is to refinance to as low an interest rate as you can get. I've found credit unions to be much better than banks or other car lenders. You'll get your credit score up before you know it, and then be able to afford a lot more car for the payments, or a comparable car for much less.
Thank you for your insight. From what I am finding, credit unions are the best when it comes to rates. My credit union is offering me the lowest rate out of anyone. For me, it is a combination of things: lower payment per month, lower interest rate, paying less for gas, trying to stay as ahead of the game as much as possible on the negative equity and have a vehicle that retains its value as much as possible. What really hurt me was the first vehicle I bought 2.5 years ago (Kia). It depreciated so much during the first year. It lost almost half of it's value. I owed $19k and when I traded it into the dealership and they gave me $12,500 as trade in value. They tried to give me $9k at first. It was bad. Plus the interest rate was 22% and that did a lot of damage. Now I am down to 7% and have the ability to lower my payments by $150 per month. I am looking at a Prius this weekend and it looks like I am going to be able to make it work. What I know so far: Payment will be far less than what I am paying now, I will pay less for car insurance and I will pay less for gas. What I don't know: how much more of the negative equity will be knocked down. If I can cut it in half that would be awesome ($2k) and than keep making payments until I refinance in the fall when my scores are much higher. After that I will catch up on it.
Thanks to everyone for your advice. Here is to "renting" a vehicle and going to bed at night knowing that you are getting the best value possible and not the opposite 
@mynameainttracy wrote:I have had my Prius for 8 years. Best car I ever bought.
Another update. I know this is a bit off topic, but the Prius is the funnest car I have ever driven and I have driven the best of the best (used to do valet part time in Miami). Filled up the tank today for $23. Good for another 560 miles . That is what I used to pay every 3 days with the Camaro. I'm glad I made the choice. I will keep the Prius for several years and get back to even.
Not a good idea. Only way to get out is to stop the negative equity overflowing into the next vehicle. You really should wait for that to balance out before you think of trading it in on another. I said this in another post. My son-in-law kept doing this to about 3 pick-ups. He is now driving a small toyota that he hates and is seriously upside down. The loan is for 84 months. So he has 6 years or so left to drive a truck he hates! Try to stick it out. You will be glad you did.