Trade in for 2017 4x4 need advice porfas

Just do it

 

But what you guys think bro it 42k prtty much after 84 months and if I use the 4700 back it come to 37k idk they said yes Aleready the dealer but idk i just want to make sure if to do it you know what I mean bro

 

Well that's wat im saying it 1900 for 84mnths of intrest it 41k for the truck so it come out to 42825 after 84mnths and I keep 4700 cash

 

It's like 1.25% apr

 

My pops always said if you can borrow money at 2%...do it. 1.25% is about the rate of inflation. If you put that extra money in stocks, you'll make more than that 1900. Just do it

 

Once you're rolling around in your new 4x4...you'll forget all about your interest rate.

 

I like this guy hahah

 

I'll take the cash back option and finance the whole amount . 1.25% is so damn low.

 

Áselo!! If you don't you'll be thinking why you didn't. So órale áselo, and you'll be happy. As long as your happy we happy for you

 

TL;DR If you're buying a new truck off the lot at 84 month financing and expecting to trade it in a few years, you'll end in an upside down situation. If you're going to drive it into the ground, it's probably a good decision to go with a longer loan term.

Ever wonder why people get upside down on stuff? Exactly this situation.

So, using @GoHuskers recommendation of financing the entire amount, let's play with some numbers...

$39,000 truck + $3,500 sales tax = $42,500 financed
Financing $42,500 for 84 months at 1.2% gives you a payment of around $528/month.

Now keep in mind that when you drive a truck off the lot you're losing an average of about 20% (yes there is probably some further discussion here). So using that immediate depreciation, you'll be losing $8,500. Now the truck is worth $34,000. Your annual deprecation your truck is around 15% ($34,000 x 0.15% = $5,100). So after your first year, you're looking at a value of $28,900 ($42,500 - $8,500 - $5,100).

Let's look at your financing. A truck financed for $42,500 for 84 months at 1.2% makes the total paid at the end of the term $44,352. Considering you'll be paying $528/month, at the end of the first year you'll make $6,336 ($528 x 12 months) in payments. Your actual payoff would be $36,164 ($42,500 - $6,336).

One small issue, your truck is only worth $28,900. This is where we get upside down. Negative equity.

Now before you start blowing my numbers up, I understand that our Toyotas probably depreciate less than the national average. In that case, divide my depreciation figures in half and you'll still end up upside down.

You're looking for advice @Payaso 9394 ? Your figures are ok as long as you're looking at keeping your truck 5+ years. You'll break even and be smooth sailing.

I'll grab the popcorn....

 

You could always lease it for 2-3 years and see if its the truck/model you want to keep for a long time? Less payment and option to buy or give back at lease end. Like Sean said, its your money not ours. If you want an opinion-if you can afford it do it! You won't even think about the end numbers or trade value when its parked in your garage! But if the monthly payment is tight, you might want to hold. Only you can make that call... and only you can prevent forest fires! Good Luck!

 

Yup. It always amazes me how some people try to tell someone what to do not knowing their financial situation. Do what you want but we're here to give you the options!

 

Yeah...trading your vehicle in the first 3 years is almost always end up loosing money (except in some cases for your 2nd Taco). You just scared the hell out of the kid. Also, there is NO F*cking way that you can get a 1 year old Tundra 4x4 CM ($42k MRSP) for $29000 (unless it is used as medical delivery ~100,000/year).

No one should tell others WHAT TO DO - we just explain to them the Good, the Bad, and The Ugly and let them make their own decision.

 

You've already made up your mind... you just need a little shove in the back. Do It!!!

 

Listen @GoHuskers I'm not the guy to get in a back and forth. That's what Facebook is for. But a few items here that I'd like you to note.

My figures were based on an average depreciation value. In my post, I said to cut the depreciation in half if you disagree with my numbers. Additionally, my $29K figure was for trading it in. Add some margin on there and that's what you'll be buying it for at the dealership.

The purpose of my post was to help someone understand how long term loans on new vehicles can ultimately get them in an upside down situation. Which I hope added some value. Sorry you saw it differently.

 

No hard feelings. Happy Thanksgiving.

 

No problem my friend. We're all here to help each other. I've seen you give good advice on here before. Happy TG to you and everyone as well.

 

Yeah I get you guys but it was 41k and at the end of 84mnths it was going to be 42840 cuz the payments were 510 a month and would get 4700 cash but didn't do it wife put a stop to it hahahah so close joonbug

 

sorry to be bold but if you are looking at 84 months financing new you should maybe look at used ones. I know I did. I just didn't want to get stuck paying car loan for that long.

 

I don't mind it I rather have new then used sumtimes they come with hidden problems sumtimes.... but you make sense to its along time thanks for all your opinions guys

 

Ended up going to put a cover on my bed thou mx4

 

See? That's why you just gotta jump on it before the wifey shuts it down. I told my wife I was going out to look at some trucks. 4 hours later, came home with a new one. Might have paid a little too much, and got yelled at a little bit, but didn't even give her the chance to truckblock me. Well, Ricky, we tried. Atleast you still have a really nice truck.