Here for some thoughts…

Here’s my situation.

Wife has a Highlander that is getting a little long in the tooth but in overall good shape…. 2016 needs some TLC

I have a mechanically sound RAV4 that looks like the devil crapped on that I commute with…. It’s impossible to have a nice “looking car” where I work. The underbody has a lot of damage to parking on high curbs.

And my impeccable Tundra…

My work schedule has recently changed due to a promotion. My Tundra was the family vehicle prior but now it’s going to be used less than 2k a year and my wife won’t drive it. None of our family is close, everyone is over an hour drive and some about 2 to 3. We are looking at getting her the Grand Highlander which we could afford but I would have zero payments and zero out of pocket by trading in my Tundra and her Highlander.

Option 1: just trade in Highlander and finance Grand Highlander

Option 2: trade in Highlander and RAV4 pay difference in cash. Commute with Tundra. 80 miles round trip 40 miles of that in stop and go…11 mpgs I would guesstimate. Destroy immaculate Tundra.

Option 3: trade in Tundra and Highlander. Get Grand Highlander with cash in pocket. But no Tundra…

It’s such a double edge sword. I love my Tundra but the idea of it sitting and depreciating with ungodly low mileage really irks my practical side. And the idea of selling it or destroying it makes me not so happy. I cannot have it all ways here.

But my wife and I aren’t going to be able to travel together as much. And I am not going to pay tolls to pickup up the Tundra when it’s easier and cheaper to drive to my family when it’s closer and cheaper to leave from work.

 

I commute 70 miles each day in my tundra and it is still immaculate. The gas mileage sucks but I love driving it. Almost 100k relatively trouble free miles. It is a very capable daily driver ; practicality can be debated.

I would lean towards option 2 and try to sell the Highlander and rav4 private party to get a little extra cash for the down payment.

 

Option 4? Get a Lexus GX version?

 

I traded in my wife’s RAV4 (but my daily driver) with a nearly identical 40 mi each way commute that you have. I traded it in for my current Tundra. Our RAV4 also looked like crap from the daily commute. However, my Tundras holding up better and it feels more comfortable to me.

Both the RAV4 and Tundra are vehicles that can stack up insanely high mileage. I’m pretty sure the RAV4 was the most reliable vehicle we ever had. However, it doesn’t fit three kids and a wife and we wanted at least two vehicles that could fit the entire family.

Sounds to me like you need to determine whether you need a truck or not. If you don’t need a truck, then best trade it in. I absolutely need one though with my family’s lifestyle and work.

 

Sounds to me like you already answered your own question.
You must do what you can live with and what is best for your family and what make financial sense to you. No matter what you do you will still have to commute to work and that wear and tear on a vehicle means nothing when you enjoy it. One of my coworkers has a BMW that is rare, and he only drives it to work on Friday. On the rest of the days, he drives his beater that he's had since forever.

 

Keep the beater and sell the truck. Depending on your age, reaching debt free and freedom to retire comfortably on your timeline is more important in my opinion. Your forfeiting 40k and letting it depreciate in your driveway.

Questions:
1. How long does it take you to save 40k.
2. What do you NEED to spend 40k on right now that you'd be putting off. (Debt, reno, max 401k)
3. How many years do you have left where you cab burn money on wants vs. needs?
4. Are you willing to sacrifice some of those (#3) for a truck vs. whatever else you've dreamed about.

 

Keep your beater and get your wife into a 4Runner. Body on frame is just so much better! Buy a trailer or rent a truck and or trailer as needed. Rent a vehicle when taking a trip.

 

AND congrats on the promotion

 

Option three. No debt. The Tundra will fetch a good dollar. Sell it privately, the dealer will only give you wholesale. No point using the Tundra to commute then have it destroyed . It will be worth much less. You can always buy another truck later on.

BTW the Grand Highlander is a very good vehicle.

 

When I bought the truck, I was 4 years out from changing careers. The plan was to get rid of the beater and drive the Tundra to a normal job in which it would have normal wear and tear. Perfect at the time…

Then life happened which is beautiful.

I have 6ish years before I can start using it like any normal vehicle.

I had a 5th gen 4Runner, the ONLY thing it did better than my wife Highlander was offroading. Yes that includes towing a 500 pound aluminum trailer with a Yamaha Grizzly 700 as crazy as that sounds…

Thanks you but no thank you…

 

Thanks bud!!

 

As soon as you get rid of a truck, you'll need a truck. Ask me how I know.

What is wrong with the "long in the tooth" rig? 2016 isn't that long ago.

 

Nothing really.

We maintained in the sense of mileage (low) instead of my time. All the fluids except motor oil are very well overdue for the amount of years we owned it.

My concern is my wife when she travels with the kids alone.

 

AAA works wonders. The whole point of a Toyota is that they last, and the best financial decision to capitalize on it is to keep it for as long as possible.

Just my 2 cents, but I've been without a truck before and I've swapped a lot of vehicles to come to this point. Whatever decision you make, I hope you and your family are happy with it!

 

No offense but it doesn't sound like you need your truck or a new Highlander.

 

None taken…I am interested in different perspectives.

 

Ok here is one.

Keep both vehicles and sell the truck. Take the 40k from your truck and put it in a 5year treasury- Yeilds 4.14% = 8k

Or add a little risk and dump the 40k into stock ticker SPY (S+P 500 ETF) and sell covered calls on your stock every week that you stand to come out ahead. That's a 10% a year profit? After 5 years of compounding interest your at around 10k profit

If you could add 10k a year in savings to that. You would of financially planned a 100k nest egg in your possession after 5 years time.

 

Congrats Joey.

Keep the Tundra, trade the other 2 and maybe soon you can transfer and possibly get a take home car.

 

Not a bad idea, not bad idea at all…

 

I have to keep reminding myself there is a reason I'm not supercharged .

Either way good luck man

 

After long conversations with the wifey, the crunching of numbers (literally went back to my bill of sales to see what I paid for each vehicle), and LOTS of internal debate I decided to not change a thing.

I would honestly regret selling the truck be because A) I got an INCREDIBLE deal on it brand new and B) it’s much more than a tool to me. I have never had a vehicle I enjoyed as much and my family loves it…my kids were upset when I spoke to them. They always ask to ride in it. My wife loves it as well. No need to get ride of something that only costs me an insurance payment and two year registration when it provides joy and household utility.

In regard to my wife’s car, we are scheduling all the fluids to be changed, new Michelin tires, restoring the hazy headlights (trying a kit first but will buy new ones if necessary) and a detail job. My wife is pretty clean and has not destroyed the car. All of that is far less monthly than the purchase of a new car even if we only keep the car another year…a few years down the road we will revisit the topic.

 

And thank you all for your honest insight!

I funny it comical when people ask for opinions and get upset about opinions that don’t jive with theirs…don’t ask then!