Long story short, my truck of 10+ years gave out on me beginning of the year. Thought I'd get one more year out of it, so the untimeliness of it threw a kink in my budget. Because of that I went with the longest term possible to keep the payment low on the new truck. I had little to no trade value from my previous truck, so basically no down payment was used.

My question is...does it make sense for me think I can trade in my 1 year old truck and use the higher trade in value for the same model a year newer, and get a lower monthly payment. Cash on hand is my main concern, so if I had to start over the contract terms (# of payments), I'd be okay with it as long as the payments were valuably less.

I apologize if I'm coming off ignorant in this. I've over thought this so much that I've become numb to logic haha, so I'm looking for that brutal honesty Tiger Droppings is known to provide.

Thanks again.

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Posted by GaryMyMan

Shreveport

Member since May 2007

13498 posts

Posted on 10/23/17 at 4:41 pm to Snoopy04

There is very little chance you're not upside-down as hell on the current truck. ie: you have no equity. The "trade in" money would all go to repay the current loan (and you'd probably have to come up with several thousand more dollars).

If you're looking to get out of a high truck note I'm afraid insurance fraud is your only option.

This post was edited on 10/23/17 at 4:44 pm

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Posted by Snoopy04

Republic of Texas

Member since Aug 2015

3012 posts

Posted on 10/23/17 at 4:45 pm to GaryMyMan

quote:
There is very little chance you're not upside-down

Yup. Over thinking definitely got the better of me on that. Thought hadn't even crossed my mind. Thanks.

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Posted by Stuckinthe90s

Dallas, TX

Member since Apr 2013

2576 posts

Posted on 10/23/17 at 5:06 pm to Snoopy04

Without any details I will tell you my initial thoughts.

Your are most likely upside down on the loan, and if not, TT&L will eliminate any gains you had on your truck.

If I were you, I would add $50-75 extra on to principal each month and then after another 2 years you should have some serious equity in it. The problem is that all the interest is paid at the front of the loan and the equity/principal is paid in at the back of the loan.

Now if you could get someone to purchase your truck private purchase for more that you paid, crazier things have happened, then you might get something out of it now.

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