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Started By
Message
Vehicle Swap Question
Posted on 3/13/15 at 8:50 am
Posted on 3/13/15 at 8:50 am
So last month my wife got laid off. Got us to thinking about where we could buckle down to save some cash, which got me to thinking about selling my truck.
I currently have a 2012 F-150, appraised at $26K, and owe a little less than $20K. I'm a big fan of the older model (2005-2008), and found a 2008 with 65,000 miles for $20K.
My thought here is to straight up sell my truck for $26K, buy the 2008 for $20K, and pocket $6K in the process.
Is there anything I'm overlooking here? This sounds too easy of a deal to make some extra money.
I currently have a 2012 F-150, appraised at $26K, and owe a little less than $20K. I'm a big fan of the older model (2005-2008), and found a 2008 with 65,000 miles for $20K.
My thought here is to straight up sell my truck for $26K, buy the 2008 for $20K, and pocket $6K in the process.
Is there anything I'm overlooking here? This sounds too easy of a deal to make some extra money.
8
Posted on 3/13/15 at 8:59 am to MSH
Gotta factor in TTL and any other fees also.
Posted on 3/13/15 at 9:01 am to MSH
This would work out if you didn't owe 20k on your truck
Posted on 3/13/15 at 9:13 am to silstang23
quote:
This would work out if you didn't owe 20k on your truck
How do you mean?
Posted on 3/13/15 at 9:29 am to MSH
Your interest rate on 2008 truck will likely be more b/c of being older vehicle. Then after you pay TTL on new purchase, you will be out more money. I think after all is said and done, you would be lucky to save 4500. For that little difference, I would stick with the 4 year newer truck.
Posted on 3/13/15 at 9:38 am to MSH
quote:
My thought here is to straight up sell my truck for $26K, buy the 2008 for $20K, and pocket $6K in the process.
You'll pay sales tax on the entire $20K not just the $6K difference. At 9%, that's $1800. Plus if you finance it, it will be at a higher interest rate and for a shorter period so your payments will probably be more than what they are currently. Not to mention the higher maintenance costs of an older vehicle.
Look for some other area of savings. Get on a basic cell phone plan, cut your cable/satellite, eat out less.
Posted on 3/13/15 at 9:47 am to MSH
quote:
appraised at $26K
As in: the KBB private party value is $26 or a dealership said "I'll give you 26 for that"?
quote:
I'm a big fan of the older model (2005-2008), and found a 2008 with 65,000 miles for $20K
Get a 2005 with 90k miles for $14k. Get an XLT rather than Lariat, etc. A mistake I made was selling my totally paid off 2004 F150 with 160,000 miles. I'm sure the thing is still out there kicking arse. But I got great money for it.
Posted on 3/13/15 at 9:59 am to Layabout
quote:
You'll pay sales tax on the entire $20K not just the $6K difference. At 9%, that's $1800. Plus if you finance it, it will be at a higher interest rate and for a shorter period so your payments will probably be more than what they are currently.
Thanks man. This is stuff I didn't consider.
Posted on 3/13/15 at 10:00 am to GaryMyMan
quote:
As in: the KBB private party value is $26 or a dealership said "I'll give you 26 for that"?
As in Carmax said they'll give me $26K.
Posted on 3/13/15 at 10:00 am to MSH
If you think your wife might be without a job for an extended period of time, sell the truck and buy a beater for cash. The payment on $25k would be a very nice bump to your cash flow.
Posted on 3/13/15 at 10:08 am to Sigma
What does KBB Private party value the truck at? Carmax generally lowballs people.
Posted on 3/13/15 at 10:32 am to MSH
So, you owe $20k on a truck worth $26k. That is only $6k in equity. You will still have to finance $14k on the new vehicle. Therefore, you will not be pocketing anything.
Posted on 3/13/15 at 10:46 am to MSH
You should probably review your math....
ETA - never mind Janky got you covered.
ETA - never mind Janky got you covered.
This post was edited on 3/13/15 at 10:49 am
Posted on 3/13/15 at 11:29 am to MSH
quote:
As in Carmax said they'll give me $26K.
Carmax is a great place... For rich people to buy used luxury cars, because they sell a great warranty. It's a bad place to sell a car. If they're offering 26 it's probably worth closer to 30. Sell it yourself on Craigslist; if it's 4x4 it'll be gone in a week.
Start by getting on cars.com and searching for trucks exactly like yours (mileage, options, etc). Those are mostly dealers but you'll get a better idea of realistic asking prices.
This post was edited on 3/13/15 at 11:34 am
Posted on 3/13/15 at 1:22 pm to Janky
quote:
So, you owe $20k on a truck worth $26k. That is only $6k in equity. You will still have to finance $14k on the new vehicle. Therefore, you will not be pocketing anything.
This is what I meant when I said it would work out if you didn't owe 20k on your truck. You still have to pay off your current truck.
Posted on 3/13/15 at 1:49 pm to silstang23
quote:
This is what I meant when I said it would work out if you didn't owe 20k on your truck. You still have to pay off your current truck.
You're assuming he'd roll the equity into the new truck. He likely wouldn't be doing that if he's looking to free up some money while still getting a smaller note. He would pocket $6k minus any TTL and fees (no tax if he trades in where he buys the new vehicle), and he'd pocket the difference in monthly payment and lower insurance.
Posted on 3/13/15 at 3:21 pm to MSH
Sell the truck for $26k and get a beater hatchback for $5-8k that gets twice the miles per gallon. That's a better way to pocket some cash.
Posted on 3/13/15 at 3:39 pm to LNCHBOX
quote:
no tax if he trades in where he buys the new vehicle
Good luck finding a dealer to help you trade down.
Posted on 3/13/15 at 4:32 pm to Layabout
quote:
ood luck finding a dealer to help you trade down
If you have something they want, like a clean late model used truck, you'd be surprised what can happen.
Posted on 3/13/15 at 8:28 pm to LNCHBOX
I can tell you where not to go. 
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