Should I get a new car?

You should keep that vehicle for a while and build up your credit rating. If you are paying $36,000 for a Honda, you will really get screwed on a decent vehicle.

I think if your loan is that high to begin with then you should not be thinking about trading it in. Leasing or financing a car will make your rates go up as whatever the negative equity will or put on top of a new loan. You should try improving your credit score and refinance your current car with a lower interest rate and that should drop your payments dramatically.

You haven't had enough of depreciation and borrowing money to buy a depreciating asset yet? Buy a used car. If you want a BMW, keep in mind they will be much more expensive to maintain and run than a Honda.

If you are trying to save costs, try to find a low mileage E46 330i with a manual transmission and buy it straight up. No iDrive, GDI, or other complications unique to newer BMWs and easy to maintain. I had a newer BMW and went back to the E46 platform... It's a better car and cheaper to maintain.

I suspect is there is NO WAY for you to save money overall if you're upside down on the Honda. any reduction in the monthly payment from trade or sale will be countered by a much longer loan term... or for a lease, by the fact that you don't ever actually gain ownership.

There is NO WAY you are cutting your costs by purchasing a more expensive car.