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Discussion Starter #1
Hey all. I am thinking about trading my 2008 CM SR5 4x2 in for a 2010 CM SR5 4x4 to take advantage of the 1.9%. I'm currently at 8%. (see thread "finance question", haha). My question is how low do you think I can negotiate? Anyone get a good deal recently? The trucks I am lookin at are in the 36K-37K range. I will be trading in my truck which is in excellent condition with only 17k miles. I'm hoping to get around 25k (per KBB) for it. Any input will be appreciated. I'm, looking to get around $450/month 60 months. Am I way off here?

Also, I purchased the 7 yr 100k warranty with my 2008. That's not transferable is it? And if not, is there any way to leverage it?
 

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Discussion Starter #3
If you are talking economics, cheapest is to keep your truck.

Well I currently have monthly payments of $420 with 60 months remaining (8% apr). I would like to get a deal around $450 - $500 for 60 months at 1.9% to upgrade to a 2010 and 4x4. Is that far fetched? I know I would be paying a couple grand more (I ran the numbers multiple times), but I would get a newer truck and 4x4. The only thing that weighs in the back of my mind is the extended warranty I purchased. Then again, I got it at 1/2 price.
 

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You can get a partial refund of the warrenty money. But you are not going to move to a new more expensive truck by just paying $30 more a month. You don't have many miles on your truck, you got the warrenty, taxes are paid.
It you can afford to pay more per month, do two things, refinance your existing loan at a lower rate and make the bigger payments. The 08 will be payment free soon and you can use that money to save towards a 2012 or 13.
Not likely Atlanta will be socked with snow over the next two years like this year.
 

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How much do you owe on your current truck? Negative equity will definetly make this not work for you.

You can borrow $27,000 at 1.9% for a payment of about $472/month.... Now you know where you need to be. I somehow don't think that a $36k MSRP vehicle could be had for $27k out the door with the 1.9% financing at the moment. How knows what the incentives will look like later - so I would wait and see. If you have trade EQUITY then you might be able to get down to the range you need to be.

You warranty can be cancelled and you will get a pro-rated amount back - so it will help you out a little bit.

Good luck!
 

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Discussion Starter #6
How much do you owe on your current truck? Negative equity will definetly make this not work for you.

You can borrow $27,000 at 1.9% for a payment of about $472/month.... Now you know where you need to be. I somehow don't think that a $36k MSRP vehicle could be had for $27k out the door with the 1.9% financing at the moment. How knows what the incentives will look like later - so I would wait and see. If you have trade EQUITY then you might be able to get down to the range you need to be.

You warranty can be cancelled and you will get a pro-rated amount back - so it will help you out a little bit.

Good luck!
I currently owe 19-20k in principle for the next 60 months. With the 8% apr I am paying, I have an additional ~$5,200 in interest I am paying on top of that. So yes, I do have some trade equity.
 

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How many payments did you start with (72)? You still have 60 left?
 

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You can get a partial refund of the warrenty money. But you are not going to move to a new more expensive truck by just paying $30 more a month. You don't have many miles on your truck, you got the warrenty, taxes are paid.
It you can afford to pay more per month, do two things, refinance your existing loan at a lower rate and make the bigger payments. The 08 will be payment free soon and you can use that money to save towards a 2012 or 13.
Not likely Atlanta will be socked with snow over the next two years like this year.
I agree with this line of thinking. I don't really see a way you're gonna get into the newer, more expensive truck for as little as you're thinking. You're trading in, which means they're gonna lowball you on trade value and they're not gonna be as apt to work with you on price of the new truck.

In your situation, the dealer would hold all the cards. The only thing you might have going for you is the dealer badly needing to move some vehicles.
 

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I currently owe 19-20k in principle for the next 60 months. With the 8% apr I am paying, I have an additional ~$5,200 in interest I am paying on top of that. So yes, I do have some trade equity.
Are you are expecting the dealer to pay off your current truck and give you $5k on top of that??
 

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Discussion Starter #11
Are you are expecting the dealer to pay off your current truck and give you $5k on top of that??

I'm not expecting them to do anything. I have just been asking questions to get a feel for what happens when you trade in on a truck you still owe on (on another thread) and see what kinds of deals people are getting these days. Again, the only reason I am considering this is b/c of my APR being at 8%. I have talked to 3 banks about refinancing and they all said I am getting the best rate I could get. I had my mom talk to her credit union through work and they said they wouldn't refi. I saw this deal for 1.9% so I figured I would ask the knowledgable folks on TS:D, since I don't have much experience with this. I just don't want to have to pay $5,200 more in interest (so 25k total including principle) when I feel like I could hopefully get away with getting with a 27k - 30k loan, including interest, for 60 months..make sense? Again, I am just getting ideas and will talk to dealerships this weekend. I will only pull the trigger if I get the monthly payment to where I want it. Again, I do appreciate everyone's input:ts:. This is alllll a learning experience. :behindsofa: (<--- I have no idea what this means but I thought it was hilarious)
 

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Just out of curiosity, what makes you think you can get 1.9% if everyone else is telling you 8% is the best you can get? (I am assuming something is up with your credit). When I bought my Tundra thru the credit union here in September, I think the rate was 4.75 or so. 8% sounds high to me, unless it has went up. Granted I have not been keeping up with it either.
 

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Discussion Starter #13
Just out of curiosity, what makes you think you can get 1.9% if everyone else is telling you 8% is the best you can get? (I am assuming something is up with your credit). When I bought my Tundra thru the credit union here in September, I think the rate was 4.75 or so. 8% sounds high to me, unless it has went up. Granted I have not been keeping up with it either.
I am not assuming I will get 1.9%. I am hoping I get 1.9%. I am going to see if I qualify. If I don't qualify for it, I'm not even going to entertain the idea of trading in.

I have 8% because I was 23 when I bought the truck. It was my first major purchase and I didn't have much credit built up besides 8k in student loans and like 10k in credit card limits. They told me if my dad cosigns with me, I would get 7%, but I figured it would be better for my credit if I did it on my own. I currently have over a 700 credit score and a great job (knock on wood). When I talked to the banks about REFI, they told me my truck would then be considered used and the best rate I would get is around 9%. Then I saw the deal for 1.9% and figured it wouldn't hurt to ask you folks for advise and talk to a toyota dealership and possibly upgrade to a 2010 CM 4x4. Like is said, worst comes to worst, they say no to 1.9% and I still have an awesome 2008 CM 4x2. I will just be stuck with the high apr. Again, if I get turned down from the 1.9% I am not doing the deal.
 

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If you trade in your current vehicle for a new one, the dealer will only pay off what you currently owe provided that you are not upside down. If you have negative equity on that vehicle, it will be tacked onto the sale price of the new truck hurting you. If there is no negative equity and the dealer pays off your truck, you are then left with a new loan of $30k. Off the top of my head thats roughly a $600 a month payment. Your best bet is start sending more money each month on your current truck and pay it off faster avoiding alot of the interest. It is very unlikely that you will get a new $30k + truck for $450 a month unless you have a good down payment or there are atleast $6k in rebates. The trade in, however, will save you roughly $1k in taxes.
 

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Yeah, virtually any time you try to get out of a vehicle this early (only 12 out of 72), it is gonna cost you. That is one reason to avoid lengthy finance deals. You're going to be schooled in such phrases as 'negative equity" and 'upside down'.

Simple thing to do is to see what the real deal is at a dealership. I think we will all be surprised if it works for you. You need to pay your truck down some more.

Keep us posted as to what you find out at dealer.
 

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Ok, we are all assuming things here without the full information. (like how much money was put down on this truck at purchase) A dealer will pay off your trade and apply equity into the new truck purchase or tack on negative equity. You say you think the truck is worth 25k according to KBB TRADE-IN value, right? Your payoff is let's say $20k. IF you actually got 25K at trade-in (and be slick here, if you tell them you owe $20k, that is what they will give you - go to carmax and get a free appraisal to be sure you aren't getting totally ripped off here). then you would have 5K towards the new truck, PLUS in Florida at least you would save sales tax on 25K (which is another 6% of 25K or $1500).

A NEW truck that MSRP's for $37k, you might be lucky enough to get out the door without using any cash incentives for hopefully $37k out the door (I included your tax savings here), subtract your 5k equity and you are at $32k to finance with nothing else down.

Now, $32k for 60 months at 1.9% is $560 / month.

IF the dealer really wants to move a truck you may be lucky enough to get to owing $30k, but that is still $524 / month...

Now, if you went back to a 72 month note at 3.9% your payment would be $467... All values are rounded and I used excel's loan amort spreadsheet...
 

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I think you are just going to have to go to the dealers and see what they say. A basic crew max SR5 2wd trade value on kbb is $22600. Maybe you have other options that make it to $25000. Also need to know your payoff amount on current loan for a specific date. You quoted your principal but payoff might be different. As far as getting a $37000 truck down to $30000, it might work out right now because dealers are trying to get rid of trucks. I think you would just have to go in and test out the waters, realizing that you can just walk away at any time and pay your 8% until the truck is payed off.
 

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up here they wont budge on prices at all. even with the state of things, they said they are still selling good enough, that they dont need to deal. maybe get running boards thrown in if i was lucky.

in your situation, you should just go straight to the dealer. and have them give you an exact number of what they will offer for trade in. but im willing to bet its far below the 25k the kbb is telling you. but even in that case, i still understand your reasoning. if youre stuck with 5200$ in interest over the rest of your loan, and you would only pay 1200$ in interest if you got a new truck at 1.9%(round number just for ease of explanation). then thats an extra 4000$ you can afford towards the principle of another truck, without really losing any money yet. then you can get an actual price on a new truck from the dealer as well. and decide if the numbers work for you. cause right now, your numbers are all speculation.

if you can afford the higher payments, its the truck you want, and your job is secure. then you might as well go for it. at least your payments will be mostly principle, instead of huge amounts of interest.
 

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Discussion Starter #19
I think you are just going to have to go to the dealers and see what they say. A basic crew max SR5 2wd trade value on kbb is $22600. Maybe you have other options that make it to $25000. Also need to know your payoff amount on current loan for a specific date. You quoted your principal but payoff might be different. As far as getting a $37000 truck down to $30000, it might work out right now because dealers are trying to get rid of trucks. I think you would just have to go in and test out the waters, realizing that you can just walk away at any time and pay your 8% until the truck is payed off.

That's exactly what I plan on doing. Test the waters this weekend and see what they say.
 

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OK, let me try this one more time. If your objective is saving money, you can save $3360 by refinancing with this credit union at 3.99%. The way I calculated that is if you refinanced at 3.99% and kept making your $420 payment the $20K will be paid in full in 52 mos. thus saving 8 payments of $420. Or, you could reduce your payment to $368 for 60 mos.

This is all pure savings. If you trade up your "savings" will just be your rationalization for buying a new truck.

I noticed that this credit union is quite aggressive on their loans with the rate for used cars the same as new. (That tells me that they are going after refinance customers.) Also, they are aggressively seeking new members. They advertise their membership is for various affiliations with the armed forces, they also open membership to members of the National Military Family Association, a non-profit org that anyone can join.
 
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