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Don't trade it in...
Depending how your finances are, either collect enough cash or get a personal loan. Find the car you want and buy it. Get it all set for the road, and drive it. After you know the car has no problems, sell your old car on craigslist. Pay off loan with the money you received.
If you have something else to drive, you could sell the car first, then buy the better MPG one.
As always, it is your choice, dealers would never buy a car if they plan on loosing money on the deal, they are in business to make money, just like any other business.
Good luck at which ever way you go with this.
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