How can a 2014 cost more than a 2016 ??

A friend sent me this email.
What is your reaction?
My reaction is in the reply.


Dude,

Due to the crazy high value of used Toyota Tacomas, my truck is suffering from almost a contango effect in that its still worth almost what I paid for it.
I currently have a 2014 Toyota Tacoma Access Cab 4x4 V6 Auto TRD SPORT.
It's sticker was 33 something, I paid 31. I owe 20,400 at 2.9% currently.

Toyota dealer will pay me 25,000 on Trade in, but I have to trade it in for a '16 Tacoma.

2016 Tacoma is 31,500, and 0.0% financing.

When you do the math, it LOWERS my monthly payment from $590 to $560.
Its actually cheaper to buy a new truck.

BUT. Is it worth it given the huge redesign of the Tacoma? Is a totally different truck.
New design, new engine, the f*cked up Atkinson thing. New 4WD system.

I dont know if its worth it.

 

While the monthly cost is lower, he still extends his loan duration by 2 years, by resetting it.
Bottom line seems to be he’s getting $25k and paying $31k, so he’s paying $6k to do this deal, right?

A cars.com search shows that 2014 Tacomas are like $31k to $34k
2016 seems to be priced at $41k
Looks like he can get a 2016 Tacoma for $25k-$29k on open market.

Maybe the dealer's angle is to pay $25k for 2014 and sell it for $34k. Profit $9k.
Dealer buys 2016 for $42k and sells it to friend for $35k. Loss of $7k.
Still makes $7k on the deal ?

Still, why are the 2014s almost the same price? Makes no sense.
Maybe there is subprime lending on the used car market?
Excess credit magnifies artificial demand? College bubble, etc.

 

Pro tip: NEVER SHOP BY 'PAYMENTS'

 

Dealers will always mark them up pretty heavily. Even then 14-15's around my neck of the woods are selling for low 30's I spent 4K more to get an off the lot, new car smell and 20k fewer miles. I love and hate the resale of these things.

 

If it looks to good to be true it usually is... Dont do it! stay with the 2nd gen!

 

Tattoo that shit on your arm if you have a hard time remembering it.

 

ive had a 2005 and i loved it. i now own a 2016 SR 4x4 and i love it,the tranny was better in the 2005 but i will say this dont drink the kool aid!! drive it and get your own opinion on it bc on the freeway i love my truck way more then my 05 and although its a 3.5 this truck has more balls. the horsepower difference is noticeable and for me personally the trans is good. it shifts quick when you get on it and it still feels great offroad. it does try to shift early but push the ECT button and its much more fun. gas mileage did improve but it isnt great. either way drive it but if you ask me it was worth it! the 2nd gen was outdated and the interior is amazing in this truck. test drive it!!!

 

Traded my 14 for the 16. No regrets.

 

A little financially impaired. "If it too good to be true, it probably is".

 

if you dont mind starting over on payments id do it. i love lower interest rates and if they are offering 0% thats a big plus!

 

Yea, we agreed that he's extending his loan by 2 years. And bottom line is that he's getting $25k for his truck, and buying a new one for $31k.
But, why is a 2 year old truck still worth $25k? It has only depreciated 20% in 2 years. That seems very low, right?

 

Why would anyone buy a 2014 for $25k when you can get a brand new one for $31k ?

 

Because turd gen?

 

Tacoma's hold value really well when I first bought my 07 I went in under the impression I would buy a used one. Same thing the 05's were only like 5k less than a brand new 07 so of course it only made sense to buy new. When I traded my 07 in for the 16 they gave me 10k and it had 225k miles on a almost 9 yr old truck.

 

Yep!

I can put you in a new Tacoma for only $ 150 a month!




...For 25 years

 

Seriously, best thing is the look on a sales guys face when he asks you "what are you looking to pay a month" and your response is i dont have a set number. Too many peope get suckered into it because dealers can almost always get you to what you want to pay monthly by extending out financing or talking you into a lease. Never reveal you cards to a dealer and never tell them you have a trade until you already negotiated what you want to pay for the vehicle.

 

OP was your friend looking to trade up? Or did the dealer send out the bait & hook email saying we need used 2014 Tacoma's with ridiculous pricing? You get there & suddenly you don't qualify for 0% & the 31k truck is gone. Just curious because it happens all the time.
Now if he went there & wants to trade up I hope he gets a good deal. 0% is pretty nice on a Tacoma you do not get that often.

 

wow, a $560 dollar payment for a truck? My GT500 does not even cost that much.

 

Yeah, never shop by payments. But the bigger question is how do you like your 2014, happy with it, any issues? If you are, why swap to an unknown?

 

He also could of had some negative equity rolled in as well you never know