Upside down Negative Equity, possible to upgrade?

I have a 2.7L prerunner double cab, really want to upgrade to a 4.0L double cab 4x4 before the 16's come out... only problem is my truck is worth around 23,000 to 25,000, I owe 27,000... yes I know I could roll my negative equity onto the more expensive truck but how far will my payments go up to? Anyone good at this number game? Currently I pay 470.00 I don't want to go up more much than that.. any ideas? Who's done it and was it worth it?
Note: 2014 2.7L Prerunner double cab
17,000 miles

 

ahhh the good ole new age american way.... upside down on everything. Wait for the 16's the 3.5L and 6 spd auto should be a much better setup than the 4.0 and 5 speed.

 

Did you finance your entire truck or something?

 

My great friend from 2nd grade is the general manager for the biggest Ford dealer in DFW. He says for every $1000 you finance, the monthly payment goes up by $20. He signs off on 30-80 finance deals a day.

So you want to roll over $4k = $80 increase or close to

 

If you sold it outright, could you pay the difference? I have negative equity on my truck (long story) but I would hold on to your current truck for the time being if it were me. Get your payment down to about equal value (it's worth 22K and you owe 22K) and then start working on a move. Why do you want the 4.0 right now? Towing anything? Or is it just a want and to say you have 4x4? Gas mileage won't really change. You may even get lucky if you just try to put it up for sale locally and the right buyer comes along willing to drop 25K.

And like Schleygo said, about every $1K increases about $20

 

No disrespect intended, but if you are "upside down" on this vehicle purchase and are able to acknowledge it, use it as a finance 101 lesson and DON'T do anything! Keep making your payments, spend the next couple of years living within your means, pay down all of your debt and about 2020 assess your financial position. By that time you won't need to go on to a "forum" for advice!

 

Keep the truck you have until you get rid of the negative equity and better yet keep it until you pay it off. Don't buy a vechile on inpluse unless you can afford Leer jets and Ferraris. You'll just keep digging a hole.

You have a perfectly fine truck if you trade it in the dealers wins and will turn around and sell yours for probably 22 or 23k. I heard also that the MSRP is going to go up on the 2016 so keep that in mind. Youll be owing a good deal on a 2016 say double cab v6 4x4 plus your negative hell probably 40k.

 

Wow must have paid full retail (or more?) on a 4 cylinder 2wd and financed 100% value or more?

Rolling it into another new truck after 1 year?

I'm assuming you know how stupid of a situation you're already in and not hammer on that. There are a lot of variables. Depending on how much a dealer is willing to buy the truck for. If they will "buy" it and only leave you with a $2000 balance, and sell a new 2015 for $2000 or more off msrp, and you have good credit and your bank or credit union is willing to finance 100% loan to value, you can do that. It is up to the dealer and the banks if that can happen.

Also if you can't figure out how to calculate loan payments and interest and do something basic research you are only going to get hosed more.

 

I guess the saying is your vehicle should only be 10% of your monthly income for 3 years. I got myself in a bad boat with negative equity. I worked my but off and sold a lot of my prized possessions to get out of my mistake. I sold that very expensive tacoma and put myself in a tacoma that was within my means. I am much happier with my 2006 4x4 regular cab that I can afford than all the debt of the other 2013 dcsb 4x4. Im not sure what your income is but just food for thought.

Not trying to be rude because it happened to me. You have negative equity for a reason and might not have the means to cover the negative so you might not be able to truly afford it.

Hurt my ego the first day I downsized. Like my dad always said the bitchin factor of a new truck usually wears off around the first year.

+ don't go broke acting rich live your wage.

 

I don't have anything "nice" to say...

But if you want the cold hard truth.

If you're upside down and don't have the available money to fix that issue you shouldn't be looking to roll it over your negative equity. Also, most likely, you should not have bought the truck you currently have.

 

and is that 23-25 trade in value? Look at the trade in value and expect less than that. I see soldiers do this all the time and I did it to myself to in my younger days. Be happy with what you have. If you want a 4x4 just know that wheeling is a lot more expensive than it looks. I couldn't even afford the suspension let alone anything for my 2013 because all my money was going towards the payment. Now I can afford to do a build by downsizing accepting that Im not at that point in life to be driving a 30 grand truck with my income.

Why not look at an older double cab that way you don't dig yourself deeper?

 

How the hell does a 4x2 four banger cost 27 grand?

 

I only paid $1000 more for my 4x4 DCLB with the 4.0.

 

Keep it and make the payments. Put a locker in if you have found it won't go where you want it to, but don't mod to impress. Wheel it much and shit's gonna break, too. Expensive shit.

 

From one web site I found.

Low APR financing monthly payment per $1,000 financed:

72-months 0% APR – $13.89 per $1,000 financed.
60-months 0% APR – $16.67 per $1,000 financed.
48-months 0% APR – $20.83 per $1,000 financed.
36-months 0% APR – $27.78 per $1,000 financed.

72-months 1.9% APR – $14.71 per $1,000 financed.
60-months 1.9% APR – $17.48 per $1,000 financed.
48-months 1.9% APR – $21.65 per $1,000 financed.
36-months 1.9% APR – $28.60 per $1,000 financed.

72-months 2.9% APR – $15.15 per $1,000 financed.
60-months 2.9% APR – $17.92 per $1,000 financed.
48-months 2.9% APR – $22.09 per $1,000 financed.
36-months 2.9% APR – $29.04 per $1,000 financed.

72-months 3.9% APR – $15.60 per $1,000 financed.
60-months 3.9% APR – $18.37 per $1,000 financed.
48-months 3.9% APR – $22.53 per $1,000 financed.
36-months 3.9% APR – $29.48 per $1,000 financed.

 

You *want* a 4.0L doublecab 4x4, but what do you *need*?

All the old folks here are going to say never go upside down on anything. I am old, and I would tell you the same, but I remember being young once and telling old folks to stuff it.... I'm going to do what I want!

So, if I could offer once piece of advice it would be this.

I am going to assume your new payments would be a touch north from what you have. Figure out how much a month that new truck is going to cost you, and be realistic on this, remember tax/license. Then start making a monthly principal-only amount that brings your current total monthly payment to that of the new truck. Do this for a year, and see how your finances are doing, and if you want to truly afford that new truck (not questioning your ability to pay, but what is $140/mo going to buy you). After that the gloves can come off! Thee 2014 lease returns will be coming in, 2015 "ooo I want the new sauce" and new-old-stock-get-this-shit-gone will be coming down in price, and lets not forget about the myriad of 2013 certified used. At this point your truck will be paid down faster, most likely building a bit of equity in the truck, and giving you more in your ammo can to take a dealer for what you can.

Oh yeah, and you have a USCG icon on your profile blip thingy... if you are still in, invest in bulk ramen and volunteer for every deployment that gets you extra pay, that's how I got my feet under me when I stepped on my winky with creditors! ...and that was MUCH harder to do pre-Bush II!

 

Not sure. Mine was $24,700 and I have the SR5 trim.


$27k at the time was the same truck with 4.0. TRD was 30k and up.


Mind you I negotiated (kinda) my $24.7k, the sticker price was $26.8k or thereabouts. So I'm guessing he has essentially the same truck I do except he paid sticker price. If it isn't an SR5, well then fuck if I know. That was $1500 or so alone.

 

Technically, you could possibly get the new truck, roll in your negative equity, but get a longer term (72 or 84) and keep your payment the same, possibly even lower it depending on your current terms.

Technically.

 

I am older and know better than to give this advice, but go for it. A Tacoma holds it value well, so whatever you end up doing, keep the truck for couple of years and you will be back on the plus side. I saved, and saved and saved when I was younger and I look back and think....what for? You only live once, buy what you want and enjoy life.

 

I'm pretty sure he's at 72 months financed already.

The bigger issue is, you're already upside down. You will become more upside down on the next truck. Then what? Year or 2 down the road and you're paying $570 a month you can't afford, you still can't sell the car because instead of owing $2k over the vehicle value, you now owe $5k over the vehicle value.
Few will be interested in paying you money when you don't have a title, so private party sell will be difficult.

The real obvious thing is, unfortunately, you overpaid for the truck initially, you started off on the wrong foot immediately and now your second step, is going to be backwards even further.

Learn from it.

Bust your ass and pay yourself even on the loan and sell private party and you can break even on it, then you'll still need a down payment on the next truck, right? You can't keep financing 100% especially if you can't live with your decision and stick with it to unfuck your finances.