Should I sell my truck?

Do what you feel is right. Either way you win. If you keep it, you have a beautiful truck. If you sell it, you’ll have $15K+ in your wallet.

My ‘19 is paid for. Wife’s car is paid for. We had a 2016 4Runner that was a 3rd vehicle that was also paid for and we sold it because it was just sitting. Socked some cash away. Thought about selling the Tundra but we prefer having two vehicles and appreciate the space when we run around town, so we keep the Tundra. If I’m being honest, I’ve really come to enjoy the Tundra platform and struggle thinking about driving something inferior. I’m 40, maybe this will be my last new ride.

 

Take the money and run. Buy a nice used tundra or tacoma and pay cash.

 

I’ve been working from home for last 5+ years and have 3 vehicles now - wife stays at home too! Was down to one vehicle for about 6 months that wasn’t bad until I got my Tundra. I put about 500 miles on it a month driving it around town.

I love it and while I could make some $$$ I would regret selling. I’ve had trucks over the years that I sold and regretted it every time. I love having a truck and even though I don’t drive it much I’m keeping it.

 

I can say for sure, having Tacoma’s for years and then not having a truck for years....now that I have a new one I’m not sure I’d part ways with it so quickly. If anything it would be to buy a different one with more payload.

Wife and I are both remote at least til January. Both cars are sitting, maybe get driven once a week.

I bought a 2020 in July as we went down to one car after my wife’s old highlander wasn’t worth repairing with 290k miles on it. I’ve used the truck to do things I never couldn’t with an SUV and never wanted to deal with the hassle of renting from Lowe’s or HD.

10 yrs ago when my son was born I had a beautiful Harley. I rode it a lot before he was born, after it sat for nearly a full season and I put less than 100 miles on it. Selling it without replacing it was smart at the time however I really wish I had kept and simply rode it more.

 

If you felt like the truck was unnecessary before Covid, then definitely take advantage of the higher trade in/sale value created by Covid. But this will pass eventually....If the Tundra is the right vehicle for you post-Covid, then hold it. Even if this goes on for another year (hope not), think of what it will cost to get another Tundra a year from now - assuming you can even find one you like at your price point.

 

If you are saving the money, sell it.

If you are going to get something else, you'll just end up paying more for another vehicle these days, negating the gains.

If they are paying you that much for your Tundra, another used Tundra and Tacoma would be selling for a lot more than it would normally be. Also, the time and money loss in searching for another, cleaning, maintenance, etc.

 

My initial thoughts were sell. After sipping some coffee and knowing how much I value driving my Tundra..... I couldn't help but think of a refinance. (I refinanced prior to paying it off to keep my truck - best decision I made for my budget & happiness).

1 - Stop / hold off on additional MODs. Yup, cut the cord on mods/upgrades.
2 - Refinance $18,500 and shop your auto policy. Go to progressive.com and try a new quote (USAA if you've got any affiliation). If you have claims/accident, try Mercury Insurance for a quote. (I've no affiliation to either, but those got the best rates for both scenarios).
4 - Refinancing $18,500 for 60 months is $300ish to $350ish depending on your credit score. Push it to 66 months if you'd like or 72 months. Bank of America made it super easy to refinance for me.
5 - If you sold and bought a cheaper car, your car payments would be roughly the same. If you buy a 1st gen Tundra or other truck with the money you get from selling this one, you'll most likely spend an additional $3k+ on MODs, while having downgraded and missing this one.

 

The challenge is if you find yourself needing a truck before the market goes back to "normal", you'll have to pay through the nose to get something new or even a used one that's similar to what you have now. (Obviously you could buy a cheap beater truck but presumably you'll be commuting to work again at some point so that may not be the nicest option.)

I can't imagine owning a house and not owning a truck. But I've also been using mine to go camping every weekend this summer. Right now it's sitting on my driveway full of garbage that has to go to the eco station. Can't do that with a car.

 

I have a similar equity situation like you do with my truck. I rarely drive even prior to COVID, but I knew that all along. Since you’re still working, I’d hold onto it until you need to dump it. Maybe one thing to help offset your monthly cost is lower your annual mileage with your insurance company on the truck. It’s not gonna make you rich, but it could save you $15-$30/month depending on what your currently have it set at. And each month you make a payment, you’re increasing your equity position. I understand the other side of the coin, sell the truck, bank the equity as well as your future monthly vehicle and insurance payments too. So I guess the real question is, if you sold it, would you be out shopping for another truck soon?

 

OP, this is an excellent thread !

I’ve gone back and forth on selling my truck, it’s a 2017 Platinum which I use for Grocery getting, HVACR side work, DIY projects and tooling around in. It’s only got 13,700 miles. Since Feb 2017. I have a free work vehicle which with my company and wifey has the “power lesbian” car.
( Lexus RX 350 F sport - black)

I owe $12,562 on it. I’ve considered selling or trading it in many times. Mostly because I was lusting after a Gen2 Raptor. I have since been cured and I’m working toward the goal of NO TRUCK payment.

My local toyota dealership offered me $32k just at the start of the pandemic. Carvana is offering $42k ( I paid $48,600)

Not gonna lie, it’s tempting. We will not see trade in values like these ever again in our lifetime. However I would need to wait 8-12months before normal supply chain is established and who knows what pricing will be like. Selling and starting a war chest is never a bad idea.

 

Since most of your replies are advocating 'sell', I'll play devil's advocate.

Reasons to keep the current truck:
1. What will you use for transportation if either you or your wife goes back to work? Are you prepared to be without transportation if she needs your other car to commute?
2. If #1 happens and you need another vehicle, with the $16,000 you will net after paying off your loan, you will have some financial limitations in choosing a reliable substitute vehicle.
3. You know your current truck and it's condition, which you will not know with a used car substitute if you need one.
4. You said you paid $34,500 for your truck. Did that include sales taxes and other up front costs? If you sell your truck now, you will not receive sales tax credit (some states do this) for the value of your trade-in toward a new vehicle. I don't know the sales tax rate in your state (if your state has a sales tax) but that could easily be $2,000 plus registration, etc costing another couple of hundred. That is lost money, not recoverable if you sell now and will have to be paid again if you buy another truck (or car) in the future.

I don't have a dog in this fight, and perhaps selling is the right thing to do, but I thought it would be worth mentioning some other factors as you make a decision. Good luck!

 

Major thing to consider is the finance interest rate. Many think they have 'equity', although the Tundra does have really good residual value, the gain might be less or non existent, because of the all the interest paid. Meaning, one might have already paid that much in interest.

Unless paying cash, you're not paying the price that you bought it for.

I see some say they paid (financed) $x amount and sell it years later for "just $2000 less than they paid", this does not factor in the interest paid. Each monthly payment doesn't decrease the loan that much in the first few years.

Example: Paid $35k, after 3 years loan amount is $30k. Dealer offers $32.5k. Is it really $2.5k? depending on interest rate, one might have already paid $10k. (It's even worst with low residual valued vehicle).

Then factoring in taxes, tag and title update fees.

The one thing that is always overlooked is time.

If this truck is solid and reliable, and you know the ins and outs, the research and personalization's done to it, took a lot of time that is irreplaceable.

 

That was my train of thought as well. I figured once the market cooled down, I would be able to pick up a new one for a great deal

 

Following Dave Ramseys path would definitely require me to sell my truck! I possibly wont be looking at another truck for a while.

 

I am sure we will go back to commuting at one point but my job is taking a overly cautious approach when we do. We will be phased in over the course of a year.

 

This is part of the reason domestic trucks are so popular here. The Big 3 will offer 0% financing for up to 84 months or something ridiculous like that while Toyota generally won't. (Never mind that you pay way more than the cash price when you finance it, even without the interest.) The only reason my boss leased a 2019 Silverado was because he couldn't afford the payments on a lease on a Tundra. But now that it's been trouble free for two years, I said to him why not buy it out and keep it rather than switching to something else that may or may not have problems and may or may not meet your needs?

 

I am 25 and I go to school and work full time. Buying this truck was a great achievement but right now it does not make sense financially to keep it I think.

 

This is what mainly keep me flipping back and forth. One minute I am like "yeah I am definitely selling it" and the next is "I am not, I may need it for inclement weather" lol

 

Thanks for the reply! I just refinanced @ $20k so I would hate to try and refinance again lol.

 

I use my truck mainly for the occasional run to homedepot or so. I figured if I am ever in a situation where I really need a truck, I can rent one at HD or Uhaul for a couple bucks an hour

 

No offense but it sounds like Dave Ramsey would have told you not to buy this truck in the first place.

 

Yes don’t buy new unless your a Millionaire I listen to him everyday because I’m not a fan of music and can’t find any other interesting talk show something’s he say make sense and some don’t

 

Then you should sell it. At 25, a half ton sounds like it doesn’t make any sense. I’d take all money you are ahead and invest it. When I was 25, I started my retirement savings (401K, IRA, Stock), I’m 40 now and I’m thanking my 25 year old self for starting when I did. Best of luck Samuel.

 

Personally I would not sell it. I would keep it and try and pay extra on it and get it paid off. The inevitability of you buying another after you sell are high and you'll more than likely spend more to get back into the same truck. I did this a few years back and regretted it.

 

Interesting post and I am in the same situation sort of. Wife and I both work from home and not sure when we will go back. Currently I have a 2007 yukon XL which works fine but I'm planning on buying a 2021 tundra next year. Ive been planning on this for years now. I thought about getting a 2020 tundra but like you i drive about 200 miles a month now and didn't want it just sitting in my driveway.

One thing I didn't see mentioned yet that you may want to consider is that this is supposedly the last year of the V8. If thats important to you to have and you decide to sell you may never have a chance to own a new V8 tundra again. Honestly I would probably keep driving my yukon until it dropped and then get a new tundra if not for this fact.

If i was in your shoes I would probably sell but I think i would try to sell private party first.

 

I am tempted by the Gen 2 raptor as well. I also think this will be the highest resale value I will ever get. Considering I bought this truck with the main implication that it holds its value, the sell option would be preferable.

 

Dealerships hate cash buyers. I heard some refuse to sell at all, unless is at their ‘MSRP’ price. Which I don’t blame them, they have employees to pay and is part of business. The monthly payment method still works even with today’s internet knowledge.

Unless it is for business use, I think your boss may be ‘stuck’ in the lease loop. Sound like your boss can not afford to finance or just wants new every few years.

 

I have tried to explain this to my wife whenever we talk about it. As a finance student, I am trying to analyze this from every angle and I am having a pretty good time doing it. I have made the following analysis.

I have paid about ~$600 a month for the truck for the past 32 months (total paid out of pocket is $19,200). This includes both interest and principle. My interest rate was around 4% if I remember correctly. This also does not include any maintenance, insurance, reg, or upgrades ( i figured I would not factor these amounts since any personal upgrades are considered a loss since they do not increase the value of a vehicle).

With those factors in mind, if I have paid $19,200 and I get $16k from the dealer, I would have only incurred a loss of $3,200. Dividing that by 32 ( since I have owned it for 32 months), it has cost me $100 a month to essentially own this truck (once again this does not include any upgrades or maintenance or insurance).

 

I completely agree!

 

Sounds like it's about what he can afford right now. I don't know his whole situation and it's none of my business but his last vehicle was a 2008 Suburban he put over 100k miles on. So it's definitely not an issue of financing something new every couple years.