How do I go about trading in truck thats not paid off??

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Thread: How do I go about trading in truck thats not paid off??

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    Default How do I go about trading in truck thats not paid off??

    hey all,
    Basically we are trying to downgrade in size but upgrade a little as far as MPG (So im told Highlander v6 not great MPG) But anyway, We currently have ab '05 Toyota Tundra SR5 Double Cab with 44k. We owe around 17k. The Toyota Highlander thats we are looking at is an '03 with 42k and they are asking 17,990. We would like to keep our payments the same but not sure how to approuch the car lot/ salesman. We havent looked at the car yet. Kelley Blue Book in excellent condition is 19,950 and the Tundra is 19,050. As you go down as far as condition they stay pretty close. What should we do???? Keep the truck or trade it. Any help is greatly appreciated.
    Chris

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    Junior Member bnz433's Avatar
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    Default Re: How do I go about trading in truck thats not paid off??

    I'm trading my 4x4 D-cab for a new CrewMax. But KBB on mine's a bit higher. Assuming your's is 2WD, right? KBB is always high on trade value. If you run your truck and options on Edmonds.com, KBB, BlackBook and NADA...then take an average of those 4 numbers. That's where you can "justify" from a dealer for real trade money. Problem is that you're not likely to get $17k for trade.

    Have you listed your truck on Craigslist, Orlando Sentinel, etc.? Private party sale will always get you better $$, then you pay off your balance, and use the rest as a downpayment for the Highlander. Problem might be the age of the Highlander. Bank terms get shorter with the older vehicles. I've seen some postings here where CarMax will buy a car/truck outright, and they're pretty reasonable (higher than trade but not retail).

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    Default Re: How do I go about trading in truck thats not paid off??

    Probably is going to be hard to get $17,000 for your trade unless you are trading in on a new vehicle.

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    Junior Member T100_2_TUNDRA's Avatar
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    Smile Re: How do I go about trading in truck thats not paid off??

    Quote Originally Posted by WCCTundra View Post
    hey all,
    Basically we are trying to downgrade in size but upgrade a little as far as MPG (So im told Highlander v6 not great MPG) But anyway, We currently have ab '05 Toyota Tundra SR5 Double Cab with 44k. We owe around 17k. The Toyota Highlander thats we are looking at is an '03 with 42k and they are asking 17,990. We would like to keep our payments the same but not sure how to approach the car lot/ salesman. We haven't looked at the car yet. Kelley Blue Book in excellent condition is 19,950 and the Tundra is 19,050. As you go down as far as condition they stay pretty close. What should we do???? Keep the truck or trade it. Any help is greatly appreciated.
    Chris
    Its not too hard. Your truck is worth lets say 19K. You owe 17K. That means you have about 2K in equity in it. If the new vehicle is 18K, then you will finance 16K plus the tax, title, tags, other dealer ripoff fees. Sales tax will be the biggest hit here for sure. The dealer will pay off the note on the truck. Be careful here, this is where most dealers make their money, buying trades and selling used. They will try and get you on both ends.

    Now, before you jump into this, have you calculated how much the new ride is going to save you? How much are you going to save vs. what it is going to cost you in getting out of the Tundra. Lets do some math. Lets assume your truck gets 16 MPG. Lets also assume your new ride gets 25 MPG. Now we dont know how many miles you drive per year, but we can use variables of 10, 15, 20 and 25K per year. One other factor is the price of gas. Lets assume it stays around 3 bucks a gallon. Using these numbers we come up with two little charts:
    (Miles per year / MPG) * Gas per Gallon = Cost
    (10,000 /16) * $3.00 = $1,875.00
    (15,000 /16) * $3.00 = $2,812.50
    (20,000 /16) * $3.00 = $3,750.00
    (25,000 /16) * $3.00 = $4,687.50


    (Miles per year / MPG) * Gas per Gallon = Cost
    (10,000 / 25) * $3.00 = $1,200.00
    (15,000 / 25) * $3.00 = $1,800.00
    (20,000 / 25) * $3.00 = $2,400.00
    (25,000 / 25) * $3.00 = $3,000.00

    If you drive your truck for say 15000 miles it will cost you 2812. If you drive the highlander for 15,000 miles it will cost you 1800. You save about 1000 for gas. Driving the truck for 25,000 would have cost 4687. You would save about 1600 in gas. If you drive less, then you save less. You already took the hit in depreciation on the truck, and you may be extending the payments out a bit to get into the highlander. If the highlander gets worse mileage than 25 you save less, if gas goes over 3 you save more. Run all the numbers before you decide which way to go and remember to figure in the up front costs to make the switch.

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    Junior Member bnz433's Avatar
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    Default Re: How do I go about trading in truck thats not paid off??

    If you wanna get the best arrangement, first educate yourself on the real value of the Highlander (look at Trade In, Private Party and Retail prices on the various websites). Negotiate THAT selling price down to what they're willing to go to. Then, only after arriving to a selling price, see what they'll give you for your trade in. Be realistic for both sets of numbers. If there's any carry over of your Tundra balance to the Highlander, don't do it. Since the Highlander is an '03, you're likely to get shorter finance terms than on a newer or new vehicle, which may actually increase your payment even if you finance the same amount. Plus, in general, interest rates tend to be a point or two higher. If you're not in a rush, list your Tundra for private party sale and see what bites you get.

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    Unhappy Re: How do I go about trading in truck thats not paid off??

    Well you guys were right. Went to Carmax today and test drove two highlanders. They appraised my car and will give me 12,500 and something about up to 750 off of taxes if we purchase a carmax car. I guess i will be listing the truck on craigslist and see what happens. We also have a 2001 toyota celica with 128,000k miles we would be willing to trade to thats paid off. Any good ideas for my situation is once again greatly appreciated.
    Thanks
    Chris

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    Junior Member Bakemono's Avatar
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    Default Re: How do I go about trading in truck thats not paid off??

    You best bet is going to be to wait until you pay your vehicle off more. You can get yourself into deep trouble if you try to trade in something that you owe a lot of money on, because you run into a situation of negative equity (meaning that you owe more on your vehicle than its worth).
    Your best bet is to bite the bullet for now and then once your vehicle is paid off or nearly paid off, then trade it in.
    All the best stuff is made in Japan.
    Quote Originally Posted by Tundra_Hick View Post
    The Tundra is a good single guy's truck. Its pretty, it doesn't rattle too much and its fast. Now I just need to find a woman who matches in all those respects.

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    Default Re: How do I go about trading in truck thats not paid off??

    I think you should stay put for now.
    -TunTac
    Previous Toyotas: 2004 Tacoma Ext Cab SR5 2wd 2.4L 5-spd; 2005 Tundra AC SR5 TRD 2wd 4.7L Auto; 2007 Tacoma SR5 AC 2.7L Auto

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    Default Re: How do I go about trading in truck thats not paid off??

    It looks like you will have negative equity on the truck if you trade it at carmax. If you go through with that, you would be financing not only the new vehicle but part of the truck as well. Not really a good way to go.

    As I see it, you have two options: Sell the truck privately and then use that money to buy the highlander or sit tight with the truck. You never posted what kind of mileage you put on the truck so its hard to know for sure, but with 44K on an 05 you are probably putting around 20K per year so that works out to about 1300 per year in gas savings. Offset that number with the costs to change vehicles (sales tax, licensing, loss of equity in the truck) and you will have a better idea of what it will cost per year to do this.

    For sure its not just a numbers decision. A highlander is a nice vehicle, but its not a truck. You cant tow anything much with it, and its not great at hauling stuff back from the big box stores. Its a people mover plain and simple. Maybe thats what you want, I don't know. You could also look on the private market for one. Any used car place is going to hit you up for more than the car is worth, they have to make some profit to stay in business. I am sure there are more than a few Highlanders for sale in the Orlando area. Good Luck.

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    Default Re: How do I go about trading in truck thats not paid off??

    Edmonds has got you at $16k trade in for an SR5 with no other options. I didnt know what other options you may have. I would say you could get $15k-$17K for it at a dealership that wants to sell. You will see it on the lot for $19900 the next day!

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    Default Re: How do I go about trading in truck thats not paid off??

    Oh I just wanted to add one other thing. My wife bought a Trailblazer before I had any say and got in a 6 year loan to keep the payment low with a 8% rate. Needless to say with the warrenty came up and the thing keep having problems plus fuel milage was terrible we wanted to dump it. We had to pay some of it off cash and still had $5000 negative.

    It was not all bad though. We leased a 2007 Accord right before the new ones came out and rolled the $5000 in the lease at essentially 0.9% apr. So it was better then the 8% we were paying. Not only that but your negative is protected in a lease. If the car gets totalled you get a new car. You dont need gap coverage.

    So we learned a lesson. We will come out of the lease even and with the amount she pays a month now which is no more then here Trailblazer she can lease a Lexus, and I will never(at least anytime soon) buy my wife a car because I know she will want a new one in 3 years. From now on we lease 3 years and keep the payments lower.

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