“Downgrading” to a 2017-2018 Tundra..

Find a sugar mama and forget financial issues!!

 

And low miles to boot!

 

Just needs a sunroof kit, some fiberglass, and a little paint.

 

When I was looking for a tundra I was willing to spend 30k cash. I wasn’t happy with a single 25-30k truck I found. I bought the first gen for 15k. I drove my last truck 3000 miles in 3 years. If you can find the right deal I would do it. I typically only buy new but didn’t have the need for a 50k new truck to sit around. We have 3 personal vehicles and I have a company truck. We bought the wife a new car in March of 22.

 

Last summer I paid $31.5k for this 2018 5.7L SR5 2WD with 70k miles, Arizona truck (pristine undercarriage) and religiously serviced every 5k by the 1st owner at a Toyota dealer, new(er) K02s. I have $2k in mods (wheels, LEDs and tonneau). I’m a happy camper, literally. It is primarily used to tow our Lance 2285 travel trailer. Love it! The 2004 Jade Mica Limited was my first “new” Tundra. A local taxidermist is still driving it. 250k+ miles, the first gens are great trucks!

 

Instead of just considering the current situation maybe if you try and predict your own situation to the best of your ability in the next five years, and the next ten years it will aid in your decision making. If nothing else it may give you a decent excuse to justify your decision. I know for me, the costs of my truck and the mods only makes any sense over the long term that I expect to make use of them or if my children inherit and maintain them. Otherwise I couldn't justify it and would just be happy with an old but dependable beater. Something else to think about, do you even need or will you need a truck. Used trailers aren't a terrible investment if you use them and have the ability to pull them. Truck and or trailer rental is always an option as well. Then there is the hitch cargo carriers, I have one almost as big as my Crewmax bed that I can attach to my 4Runner and haul my lawn tractor on. It can and does store upright and don't take much space or maintenance. Lots of stuff to consider, and I apologize if it complicates your decision making process. Good luck! Ha, like a Shamrock needs luck, oh well!

 

So I’m 90% on keeping it.

Not paid off - but it’s paid down quite a bit. Owe like 28k and the loan is at a sub 4% rate.

Part of the problem is simply DTI and a mortgage - having a car note makes it look like my income is stretched since they don’t calculate savings in to the income equation. I have the $$ to pay it off - but why pay off when I can keep the money invested making a higher rate of return.

If I sold - I ditch the payment and could acquire a similar truck - solving that problem and keeping a similar truck that’s used sparingly.

But sometimes it just makes sense to keep an asset - even a depreciating one - that makes you happy. Stocks don’t make me happy - owing a CD doesn’t make me happy - owning a Tundra does.

As far as “a ‘21 commanding a premium as the last of the 2.5” - I don’t see it - not in 5 years and likely not in 10-15 years. Right now it’s a mixed bag - some buyers want the proven 2.5 - some want the new updates of a gen 3. I mean look at square body Chevy”s for a comparison - the body style attracts buyers and commands a premium to the generation that immediately followed. But there’s no “premium” attached for the last year vs the years immediately preceding.

Likewise the added maintenance cost of a ‘17 with higher miles versus a ‘21 with lower. Yes - it’s possible (and likely) a ‘17 will over time have something break that needs replaced. But overall - the cost of parts/the reliability and the fact that anything can break at any time - it’s a crapshoot and not a guarantee. Realistically - even if the cost are higher for an older Tundra vs a newer - the break even is likely at or under 3k over a 5 year period. So after 5 years - you might have spent 3k more on upkeep of a ‘17 vs a ‘21 - could be less, unlikely to be more unless you were really unlucky in picking a used car. Depreciation on the 2 is likely to be even - a older car depreciates slower - but the Pro holds higher resale so it will depreciate at a lower rate too

 

Being generally happy is very important for your overall health as well. Glad you are being wise and factoring that in! Known many of pretty well off financially lonesome, unhappy, and unhealthy people over the years.

 

Looks like you sat down and thought this through. What brings you the most joy and the least grief is the way to go.

 

After my last 2 trucks brought me nothing but stress and grief despite using them less than 5k miles a year (admittedly GM products), staying with something that is working well for you is definitely a good motivator.

 

If only I put that level of thought into the decision to marry.

 

Hmmm... I don't know all the intricacies of your finances, but given you have a loan of $28k on the truck it might very well make sense to sell it to reduce your monthly debt load. Especially since you can get a premium for the sale of your truck... for now.

In my small mind, it would be different if the truck was already paid off. You mentioned that you "have the $$ to pay it off - but why pay off when I can keep the money invested making a higher rate of return." Keep in mind that's provided your investments continue to grow more than the interest rate being paid on the truck loan (greater than 4%). The state of the US and Global economy is unstable at best, the security of your job (e.g., layoffs over 2023 are expected to increase) is a big consideration, along with other income streams (e.g., spouse also works outside the home) to support your household. Your level of reserve savings should be 4 to 6 mos should you lose your job or there is an unexpected large expense.

In my mind selling the truck seems to be the smart move since you reduce your monthly debt load. You may not even need to buy a vehicle at all if you get a company car.

Just some food for thought from the Tundra peanut gallery!

 

You and me both brother, 51 years later I still believe it was a knee jerk reaction….

 

Keep your '21 Pro. You'll have zero regrets in a few years and a paid off truck.

 

The Pro is just eye candy/status symbol truck. That said 2021 is the last of the V8's and if you bought it new you know how it was treated. That peace of mind is worth it sometimes.

 

Damn - so just got one of those auto “your new price” from Carvana. Nothing like seeing a stupid number to tempt you to sell / especially after the Mrs just went wild on the home renovation and dipped further into savings.

I could walk right now - ditch a payment and bank a nice amount. Of course that leaves me with no vehicle. Options would be buy a “beater” for 5-10k - knowing one day I’d upgrade again to a newer truck when finances allow - or I could just get a “economy” Big 3 half ton late model used for 30k and have zero payment - still have a decent truck - but know I’d be losing value every year I keep it and in 5 years I’d probably have last half of what I paid (but no payments - just losing equity I’d built up).

It’s tempting me - but honestly - I just can’t see selling. Hate having an emotional attachment to a truck - but feels like I actually have one.

 

If it weren't for "fools" you would have no used vehicles to choose from. I guess I'm a "fool" for buying my last two Tundras (2006 & 2018) brand new and loving every minute of it.

Dan

 

Could sell and buy a early 2000s Tacoma or T100. Reduced price, same reliability. I'd love to own a nice 2001 4Runner myself. https://www.hemmings.com/classifieds/dealer/toyota/4runner/2642502.html

 

I'd do that deal and buy a couple new deer guns or something. No reason to have the extra cash tied up in a TRD 4wd off-road or pro 2.5 Gen Tundra because they don't have the lockers.

 

Exactly my thoughts / At least on the brand-vehicle in question.

Honestly - it can be a very specific question as certain cars/brands depreciate dramatically and simply don’t sell well used. Non special edition sports cars in general - big 3 luxury plates come to mind as particularly bad vehicles to b new.

Every year - they find a way to “hype” the new MY vehicles as having some specific feature that makes it a must buy and makes last years look outdated. Maybe they added 3 more HP to the engine allegedly, maybe this year has massaging seats in the rear as well as the front. Reality is it’s always some stupid little gimmicky thing - but that’s what those buyers want and they eat it up.

Take a Tundra - reality is what’s the real difference between any generation - aside from the trans cooler which is a “nice feature to have - but can be added at a cost” in my book (obviously more important to those towing a lot and more of a must add - but still obtainable at a semi reasonable cost). Not much really in the 2.5s aside from the mentioned trans cooler and Apple car olay that I’m aware of - and stepping back from a 2.5 to a 2 is not much aside from cosmetics.

Point is though - you don’t see dramatic drop offs in price of any of these - no one’s giving a 20% price break on any particular year. You will see in general about a 3% savings per year - which is a pretty good rate of deprecation given that vehicles are financed for 6-7 years initially. On a Cadillac - you likely see 15% that first year and another 8-12% years 2-4. Dittto on a Mustang/Challenger outside of the special limited runs that get collector/enthusiast excited to own.

 

Exactly. My 2018 Tundra (which I paid right at $40k), even though it has almost 80k miles is worth very close to what I paid for it. It is in like new condition (I take excellent care of my vehicles and follow all maintenance schedules). My wife's 2017 Sequoia is even a brighter picture. It only has 27k miles on it and indistinguishable from brand new. She could get what she paid for it or even a bit more.

So I guess a re-definition of the word "fool" is in order...

Dan

 

I agree Dan! I guess I was a fool for buying 4 different Honda S2000s over the years and selling them for more than I paid for them, selling my 2014 FJ Cruiser in 2016 for what I paid for it and buying a new Tundra Platinum in 2019 at a huge pre Covid discount and selling it back to the dealer 2 years later for the original MSRP (I made $4500, which enabled me to pay cash for my current 2018 SR5 DC). I know we will never see something like that happening again but I’ll gladly be considered a fool in those circumstances I mentioned.

 

I found a 2016 for 32k (34otd). Traded in my 2019 tacoma and got 30. they are out there you just have to find it.

 

I bought a 2014 SR5 in December. Truck was in great shape and it’ll stay that way for the remainder of its days. Got it with 77k miles on it for $21k usd. With $28k owing still I’d say there’s no reason to ditch the 21’. Unless you get offered $50K+ for your truck, which is doubtful. Just my .02

 

There is value in having a older vehicle that you bought new.

The confidence in knowing that the maintenance was done right. you know what problems it has had. You know that you can trust it. The dollar amount that that’s worth is an individuals decision.