Opportunity to trade in my 2016 TRD DC 4x4

Ok, I have 10,500 miles on my truck. There are several scratches on the tailgate and a gouge from a shopping cart on one of the fender wells. I brought my truck into the dealer for the recall and a small oil leak, that started after my first oil change. As it turns out....the timing belt cover is defective.

To make a long story short... my sales guy was there and I joked with him, how much would they give me for my truck. They offered me 30k and want to sell me same model for 34,400, plus tax, doc fees and license.

I have about 10 k equity, as I've been paying extra every month. They are offering 1.9% for 60 months, which equates to about the same minimum payment as my current loan.

Pros: I like the color better, Blazing Blue Pearl.
New warranty
New Truck
No scratches
Put in Hertz HCX 690 front speakers
Alpine PDX V9 amp
Audio Control 3.2 in dash equalizer
DD enclosed 6.5 sub woofer


Cons: Owe about $5K with new loan
I put in component speakers in the front and a Kenwood amp, which I would leave in. I would take my DD sub woofer as is it self contained.

I can make up the 5K in about a year and half with paying extra every month.

Any input???

 

I would do it, but i own a 2wd. What do you plan to use the truck for? If you your going wheel and camp with it, then go for it. If it's just a grocery better then I say don't do it. Let them fix it, pay it off, then sell it. Go back and get what you want.
Edit

 

The dealer would only do it if they will make money both directions.

Have them fix the truck and keep it. Work done at Toyota dealers is warrantied for 6mo to a year and your truck is still covered bumper to bumper for another 2 years/26k more. Instead of giving them another $5,000 and paying additional money for thr tax/tag/title difference, you could go get a bumper to bumper platinum Toyota 125k warranty for under $2k if it makes you feel better about a truck that may have an issue later.

In a couple of years, like any Toyota no one will care about the scratches. Tailgates are replaceable.

Timing belt cover just gets you a couple days in a rental on Toyota's dime, and if you have a good dealer eat a few cookies and have some coffee while you think about the extra 5k you're going to save and the peace of mind that warranty gives you.

Oh, and the warranty is transferable to a new owner, and/or can be cashed out for the remainder. Makes selling used easier.

 

You'd basically be paying on a new truck for 6 years instead of 5. Unless you really want a change I'd keep your '16.

 

Are you just looking for someone to validate the decision you've already made in your own mind or are you genuinely wanting advice? Just sayin...

 

You don't have any equity in the truck, unless they're paying you more than what you paid for.

 

keep it...let dealer fix it ....then wait for the 2018's and if you are still wanting new truck, sell it, get what you want....

 

are you asking from a financial point of view? or maybe from a 'want vs need' POV.

if I were in your shoes, I'd let them fix your truck and keep it... the problems will follow you into the new truck, as you will be starting from square one. Along with being 5000 deeper in debt. I'm not a fan of dumping one debt just to get into another one.

 

If you have your heart set on the new one, you can always try to negotiate a better deal than the first offered you.

 

Better the devil you know than the one you don't. If I trade in my Tacoma it won't be for another 3rd gen. Like other people said, you'd be inviting the same problems all over again. You've got money into the sound system. Also, if you don't intend to use the 4x4 in Hawaii you don't need it. Its a little different for some of us in the Midwest who get snow and ice every winter. I can't get away with 2wd.

 

You are confusing equity and appreciation, what you have described is appreciation--an increase in an asset's value over time--which I agree the OP does not have.

Equity is the difference between the current value of an asset and any liabilities attached to that asset. If the payout balance on the OP's loan is less than the current value of the truck he has equity in the amount of the difference between the two, after any liquidation costs are applied.

He will I suspect have lost money overall due to depreciation of the asset's value over time, however he does have equity if he owes less than the truck is worth...

 

Every person with a mistress will disagree ...

 

A corollary to "Keep your friends close and your enemies closer."

 

Thanks, generally I have only equated the terms equity with appreciation in terms of real estate. So only if OP was underwater in his loan then he wouldn't have any equity.

 

You got me. BUY BOTH TRUCKS.

 

Why buy if you can get the milk for free

Lease
Pump
Dump
Repeat

 

I got 31k for my 16 stock offroad 4x4 with manual trans and no tech package, with 22k miles on it.....just saying.

If they fixed your problems and you don't have any others with the truck, id keep it. There are other issues with the 3rd gen that are incredibly annoying and have no fix. If you don't have those, keep what you have.

 

Don't. Take that extra $5k you think you have and go get a boat or some shit. Or hookers and coke. Or start an IRA (I'd suggest a Roth).

 

Exactly... Real estate generally appreciates in value, so in most cases after a time one can still owe exactly what they paid for a house and have equity because the house value has increased.

This is very rarely the case with automobiles where many buyers are upside down the moment they sign the paperwork.