Another FNG with $$ Question

Trying to get into a 2013 Tacoma DC PreRunner with 2.7 and automatic trans with the "Convenience Package." I have a negative equity trade in so trying to keep things reasonable so I'm able to secure financing and not have an overly massive monthly payment.

My parents just purchased a new Camry from this same dealership in December and I'm working with the same salesman, as he didn't try to dick my folks around and worked to get the car he wanted for the price he wanted to pay.

Now, to the point - he has the truck I want at a sister dealership in another city (about 60 min away from his dealership) and is quoting me a price of $24,100, MSRP is looking like $24,975 for same vehicle.

Is this a reasonable quote? I told him I want to keep the truck price under $23k and my OTD cost under $30k, including TTL and negative equity in my current car.

Anybody riding a similar truck that got a better price? I'd love to be close to $23k, but if I can't squeeze them for a better price, maybe I'll see if they can throw in a bed extender and/or window tint.




Sorry to ask this question again, been browsing here all week - but figured I'd ask the source. Thanks in advance, TW!

 

Get your current ride paid down and hold off on the new purchase for a year or two.

You're upside down now, and you're talking about moving into a new truck that'll have you financing $5k more than it's worth? Sorry, that's just dumb.
It's going to hurt your interest rate, and if you get into an accident insurance may not pay off the loan.

 

Thanks for the response. I get the dumb part, so feel free to be honest.
There isn't much difference in being upside down on one car vs upside down on another, an accident in either leaves me up the creek. Only difference is my current ride is a 2006 and 59k miles, in 2 more years it'll be worth several thousand less than it is now and have the low miles won't be as low, or attractive.

The car I have now won't fit my needs another 18 months from now, and the Tacoma is something that will fit them for the next 10 years. Maybe it's more clear to others outside my perspective, but I'd rather be over financed on a long term vehicle I will keep than on a short term vehicle that I will need to sell before it's paid for. I'll lose money regardless of when it sells, but believe that it has more value now than it will in 12 months. Not much value in an 8 year old car with 75k miles.

If I'm sounding crazy, tell me. This is just my thought process. I can afford a large payment on a long term car. What I don't want to do is wait 12 months, have a less valuable trade in, and still be under water (I'd rather put thousands into a down payment than thousands into an old loan). If doing this trade now, if the ratio between trade in value and pay off amount is better at this time than it will be in a year, or 2 years from now - then I'm best off sucking it up and making it happen when it will screw me the least.

Thanks, again.

 

I understand where you are coming from but I agree with Rich... it is almost always a bad idea to finance your current vehicle into your new vehicle.

If you must go with this course of action then the price doesn't sound too unreasonable. If he is doing a dealer transfer then he won't have the "hold back" money to play with so there will be less negotiation with the truck you want. Good luck on getting the dealer options also unless they have someone at the dealership that actually applies the tint for them. Anything else will come off their bottom line on the sale of the truck.

If you do decide to go with this, at least you chose a dependable vehicle and not a Chrysler product

Good luck with whatever you decide to do.

 

2006 with 59k? That's not that old and not high mileage for any vehicle.
In 2 more years you'll gain a fair amount of equity, especially if you double up on your payments (if you can afford payments on a 30k loan, you can afford to pay more monthly on the current loan), and it's not going to cost you that much in trade value.
You're pretty close to bottomed out already with the car being 6 years old. Your greatest depreciation is the first 36 months.

If you can afford a large down payment, then dump that into the deal... but you really need to get it down to where you aren't financing more than $26k on the Tacoma. Thousands into the down vs thousands into the old loan, it's all going to balance out... but in the end, financing $30k on a truck that you bought for $24 is not a good move.

How did you get upside down on a 6 year old vehicle? I've been upside down on a few vehicles, but never on anything that old.

 

The only thing dumber (and I've done that too) is to roll the vehicle loan into a refi on your home.

Ya... the vehicle is paid off, got the pink, and long ago traded in... but I'm going to be paying for that '03 Tundra for the next 20 years.

 

Thanks Turner. There is no transfer fee as it is another dealership within the dealership group. No interest in options outside of the convenience package, and I wouldn't ever add an add-on like a bed extender, lug nuts, etc,. into a financing package. If they toss it in for free, however..

Thanks for the food for thought and responses, however they come.

 

Ouch! Yea... that's not good lol

 

"Hold Back" isn't a transfer fee. The originating dealership gets incentive money for selling the vehicle. The dealership that the vehicle gets transferred too doesn't receive this money therefore they have less to work with on the bottom line as the originating dealership. If they had your vehicle on the lot where you were buying it from you would have a little bit more to play with. But in this case you don't.

 

Holdback isn't technically "incentive money"... it is money fronted by Corporate to cover finance charges.
The vehicles on the lot aren't technically "owned" by the dealership... Corporate provides financing for the dealership.
Dealer Holdback covers the interest on the financing for the first 90 days. If a vehicle site on the lot longer than 90 days, it cost the dealership money to have it on the lot.
The flip side... the day the truck comes off of the lot, if someone buys the truck at full list, then holdback becomes 100% profit.
When I bought my '03 Tundra, I had to wait for one of the runners to peel off the white plastic before I could take it for a test drive.

Holdback didn't used to be something you could use as a negotiation tool (cars that sold quickly "paid for" cars that sat longer than 90 days), but that has been changing over the last 10 years.

In the case of a dealer stock transfer, holdback should still apply, the issue is in finding out how long the truck has been on the other lot.

 

One thing to also remember... "most" people don't know about hold back money.

 

Truck was produced 5/13 and on lot 6/12, if I'm understanding vehicle report correctly.

 

Wondering if I should put $500 aside each month towards a down payment and pay $200 extra on current monthly payment and see if I can get a better deal and situation in December. But will be restricted more then, possibly, due to my uncommon vehicle specs.

 

Best thing you could do!

 

Thanks, guys. Food for thought like I said and I appreciate the outside opinions!

 

No worries man... Good luck with whatever you decide to do.

 

Whatever happens, I'll be lurking around here. It'll be my first unmodified vehicle (this is the plan, anyway)..

Anyway, I'm sticking around to soak up info, and whatever happens, I'll be sure to post an intro.

 

Ditto... and killer deals on any '13 models that might be remaining on the lots.

Keep an eye on local dealer stock, and when you see the '14s released, within the next 2 weeks will be the hot time to jump on a '13 while there is still some selection.

Added benefit is that in 2015 you'll have a low-mileage 2013.
Depends on your driving habits, but I always seem to make the mistake of buying the latest model as soon as they hit the lot.
In 16 months, I've got a "current" model year vehicle with 20k on it.

 

ignoring all other aspects of this, if you want to know if they are giving a good price, just ask them what the invoice price was. it is kindof brash, but then you know two good points, your top, and their bottom. they have to make money, you need to save some.

the only time I tried this though, the finance guy immediately became very rude and intimidating. I left without ever getting that number.

everybody says that the otd price is the one thing that matters. its true, but for young people (using myself as example) that recently got to a "comfortable" (no longer eating ramen) point in there careers, and not much available for down payment, interest rates play a huge role in affordability. it may be worth it to over-pay in total cost to knock some money off of the monthly payment. do this by negotiating with your focus more on the interest rate than the total cost

so by taking a bit of a hit in total cost for a lower interest rate, It works out for me as my payments are always affordable, in fact I've overpaid every time, so in the long run, I may have this truck paid off sooner than if I was able to get another grand off of the sale price.

I haven't done numbers on that, and I have only financed one vehicle ever, but to me it seems logical

 

Good info. I haven't asked this dealership the invoice cost, but at the local Toyota dealership where I bought my first car (ever) got pretty irritated and then pretty much gave up on my possible sale. I told them I had looked on cars.com and truecar.com for invoice costs, and they said they were completely wrong. They said invoice cost for what I asked for was $27k, which was $2500 over the MSRP pricing Toyota gave when I built my Tacoma on their website.

At this point, unless they can slam me with a deal I'm not able to refuse, I plan on overpaying my loan now, putting cash aside, and shopping early December when the chance of me finding what I want is still relatively possible. If numbers don't work, then as the weeks go by hopefully they'll be more apt to deal. If not, well, that would suck.

Big reason I'm keeping the option open for a sooner than later purchase is I don't want to hedge my bets on finding an end of the year deal when I can't find more than 2 trucks in northern CA with my specs. Slim pickings, it seems..