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Started By
Message
So is this stupid?
Posted on 11/17/09 at 10:25 pm
Posted on 11/17/09 at 10:25 pm
I\'ll lay it all out there because its really not that big of a deal:
Late December 2008 I stole a 2006 Tundra with 31,000 miles on it from a independent dealer in Dallas who hadn\'t sold a car in over a month for $14,250. I put $2,000 down and financed the remainder at 5.74% on a 5 year note. I owe just over $10,000.
In the last year, I\'ve put 20,000 miles on the truck while the Blue Book value has actually risen to $18,500. Most of the comps listed online are asking $18,990.
Would it be stupid to try and sell the Truck for that amount, take the $8,000 or so and put it down on essentially a brand new vehicle that will be under warranty and 50,000 miles less for roughly the same note??
Thoughts?
Late December 2008 I stole a 2006 Tundra with 31,000 miles on it from a independent dealer in Dallas who hadn\'t sold a car in over a month for $14,250. I put $2,000 down and financed the remainder at 5.74% on a 5 year note. I owe just over $10,000.
In the last year, I\'ve put 20,000 miles on the truck while the Blue Book value has actually risen to $18,500. Most of the comps listed online are asking $18,990.
Would it be stupid to try and sell the Truck for that amount, take the $8,000 or so and put it down on essentially a brand new vehicle that will be under warranty and 50,000 miles less for roughly the same note??
Thoughts?
This post was edited on 11/18/09 at 10:16 am
8
Posted on 11/17/09 at 10:54 pm to Golfer
Keep the truck you have, pay it off, and bank what would have been the note.
Posted on 11/17/09 at 10:56 pm to JWS3
quote:
Keep the truck you have, pay it off, and bank what would have been the note.
I don't think you understood. I don't have the money to pay off this note.
Posted on 11/18/09 at 7:26 am to Golfer
I don't think it would be stupid as long as you can actually find a buyer at that price. You're gaining value with the newer car, IMO.
Posted on 11/18/09 at 9:06 am to Golfer
Sounds like you bought low and can sell high. That's never stupid, just run the numbers and make sure the deal is actually what you think it will be. You also have to consider the sales tax/title/license implications, you'll be paying $1000 - $2000 for that which needs to be deducted from your $8000 figure.
This post was edited on 11/18/09 at 9:07 am
Posted on 11/18/09 at 9:22 am to TigerinATL
To me you should learn from what you did. I think it's called wisdom.
Sell the truck if you can at a higher price, take the $8000 and buy another used vehicle. Then you could either buy it out right or finance a lower amount. In the end a $10000 debt could become a $2000 - $4000 debt.
Sell the truck if you can at a higher price, take the $8000 and buy another used vehicle. Then you could either buy it out right or finance a lower amount. In the end a $10000 debt could become a $2000 - $4000 debt.
Posted on 11/18/09 at 10:10 am to Golfer
quote:
In the last month, I've put 20,000 miles on the truck
What did you do, drive down to the southern most point of Argentina and up through Canada a few times?? If you sell it and buy a new you will pay sales tax and take the first year depreciation on a new car, sometimes 20-25% of value. The poster who said roll the gain into another used vehicle may be on to something. On the other hand, Toyota's are solid and long lasting.
Posted on 11/18/09 at 10:14 am to tirebiter
That should say 20k in the last year... 
I have a friend who is an auto auction buyer...might see what he could find.
I have a friend who is an auto auction buyer...might see what he could find.
Posted on 11/18/09 at 10:19 am to Golfer
If you can get 18.5k for the truck, I'd say sell it. You'd gross 8.5k after paying the note off, you've sunk about 2k into payments over the last year, so you'd net about 6.5k profit.
Take that 6.5k and drop it on a '07 or '08 model as the '10 models roll onto the lot.
But buying a brand new vehicle wouldn't be the best of moves, from a monetary perspective. Vehicle value depreciates the most in its first two years.
Take that 6.5k and drop it on a '07 or '08 model as the '10 models roll onto the lot.
But buying a brand new vehicle wouldn't be the best of moves, from a monetary perspective. Vehicle value depreciates the most in its first two years.
Posted on 11/18/09 at 4:23 pm to Golfer
quote:
Blue Book value has actually risen to $18,500.
All i can say is Kelly isnt buying cars for that price. Because kelly says that, doesnt mean it is worth that.
Posted on 11/18/09 at 4:28 pm to Golfer
quote:
Most of the comps listed online are asking $18,990.
Asking Price =/= Selling Price
Posted on 11/18/09 at 6:41 pm to Golfer
quote:
Late December 2008 I stole a 2006 Tundra with 31,000 miles on it from a independent dealer in Dallas who hadn\'t sold a car in over a month for $14,250. I put $2,000 down and financed the remainder at 5.74% on a 5 year note. I owe just over $10,000.
In the last year, I\'ve put 20,000 miles on the truck while the Blue Book value has actually risen to $18,500. Most of the comps listed online are asking $18,990.
All of this is in the past and completely irrelevant to your question.
All that matters is:
1) Can you get the price you want if you sell?
2) Is the replacement vehicle worth the price?
3) Will the change in cash flow meet your needs?
Congrats on getting a nice price for what you currently have but that has nothing to do with what you should do with it now. BTW, I doubt the Blue Book value has risen, it's just that you bought for far less and now BB is catching up.
Posted on 11/19/09 at 10:05 am to MikeBRLA
quote:
Asking Price =/= Selling Price
Oh, I realize this...I was just using it for a reference point.
Posted on 11/19/09 at 10:06 am to foshizzle
[quote]BTW, I doubt the Blue Book value has risen,[quote]
It was around 16,900-17,100 when I checked it about 4 months ago.
It was around 16,900-17,100 when I checked it about 4 months ago.
Posted on 11/19/09 at 10:20 am to Golfer
keep what you have, dont buy new
/thread
/thread
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