My dealer just called... wants me to "upgrade"

oh most definitely

 

Yeah, the dealership is out to make money.

That said, it might be a good deal for you.

In my case, trading in my 09 DC and getting a 12 AC should drop my monthly payment by about 100 dollars per month, and I get a new warranty to boot. Used Tacos have really held their value, so you can use that to your advantage in combination with low interest rates.

So, I'll be getting a new truck that I like more, and a lower payment to boot. Sure, I'll be paying for longer, but... with a wife and a teenaged kid, I'm going to be paying anyway. It might as well be for my stuff. ;-)

 

Betcha it won't.

ORLY? What if you'd instead actually paid off your first truck vs taking more debt on a second one? Looking at anything other than the total amount you spent to drive both trucks is less than mature, to say the least.

Oh, also. The notion that you're "going to be paying anyway" is complete horseshit. I'm not trying to take personal pot shots here, and I realize a family adds an enormous amount of expenses, don't get me wrong. But jeez, this ridiculous attitude makes me lose a lot of sympathy for people with debt problems.

If you have to be mired in debt to have what you own, you can't afford what you own. Period.

 

Bastards just called again ROFL

Tried setting up an appointment and they are "very interested in the truck"... Psh LOL

I asked to talk to the Sales Manager on the phone, but he wouldn't pass me through. SCAMSSSSSSS

 

Even if you did get a deal, you already have your truck.

Once you have a vehicle, you'll almost never profit by trading it. It's always, always, always financially most sound to simply drive it til the wheels fall off.

 

Nonsense. This is the basis under which all capitalism works.

You've got investments, right ? Why do companies need investors if they are already making money ? It's a loan from you to them.


That said, you're right as far as it goes, but it's pennywise and pound foolish. Like any engineering problem the solution is going change depending on what you've decided your priorities are.

I mean, I could dump a bunch of stock earning 7-8%, buy the truck outright, and avoid a loan at 4%. That's moronitude, though.

I could sell the old truck and dump all the money into the stocks. But, that's not very much fun at all. Hell, that's like the opposite of fun. Stocks have really crappy offroad handling.

Or, since money for new cars is cheap and the old truck has a lot of value - I'll take advantage of that, get a new truck, and pay less per month. Drop the difference in the 401k or get the wife something nice, or whatever.

I like having cake and eating it, too.

So, yeah I'm paying more over time, but it isn't actually that much. The actual cost difference amounts to a little under 3000 dollars (less adjusting for inflation!) difference over 5 years - assuming I carry the loan to term.

I take your point about people being foolish with debt and not taking sufficient consideration of the externalities. People can be really dumb! However, debt is not ipso facto bad, and it is not always the case that trading in a newish vehicle for a new one is always a bad idea.

 

I was offered $2000 more than I paid for my used truck back in Jan......LOL I told them to write me a check and I will consider it... Needless to say.

 

Here is something to ponder.

My 09 had a sticker of $26,500. I bought it for $22,500 with $1k down including TTL.

So this truck they have is a 11 for $28,600. TRD Sport long bed ( ) brand new. I still owe 4 years on my truck... so adding another 2 to make it 6 years at $390 a month wouldn't be bad IMO. HOWEVER, I don't think they would do it ROFL.

I don't know what they truck cost the dealership, but why do they want my PreRunner... and what is it worth

 

haha I wished they'd give me that call.

I'd send them a pic of my truck and ask em: "You think you can do better than this?"

 

Investments are not loans.
Loans can be guaranteed are are usually backed with real collateral . Investments cannot be and only have paper backing.
.
INVESTORS take risks...They are not LOANS!!! They are investments.. Made with the HOPE of getting a return based on due diligence and the full knowledge all can be lost. Even those who buy corporate bonds are ot guaranteed they will be paid back and those ARE loans.

Companies float stock for two reasons to raise money to pay off debt (therefore under no obligation to pay that back) or to grow again with no promise of an actual return on investment. You can make 7% on ATT in dividends but can lose more than that in principle. Again not a loan but investment based on the confidence of future earnings and maybe some growth. Those earnings go down the stock tanks..If they go down enough the divident is cut and the stock REALLY tanks.... ( see bank stocks that paid great dividends before 2008)


Being mired in debt is the reason for the issue this country is in on an individual level and at the Federal level. Loans taken on depreciating assetts is bad debt. Period. There was a time in this country when people did not have the available credit they have today....(mush less today than in 2000) and they were much better off.

 

KBB has
Excellent $23,075
Good $21,925

Settle at $22,500... it is in damn good condition. Only things ever changed were added OEM cruise control, OEM fogs, and towing package.

Damn these people have me thinking... BASTARDS

 

Keep to topic.

 

did you buy your truck new?

if so, why wouldn't you be able to get a new one for the same payment?
Tacoma's hold their value better than most trucks, often times people will have some equity depending on the term and payments.

It's also the end of the 2011's so the rate's are good and there are some good cash incentives. why not have a look? If I got that letter it would be a great excuse to get a new truck!

 

OK You are crazy to trade a perfectly good truck for another with newer metal and extend your debt obligation. Pay it off and put your money in the bank.

 

I got the same call yesterday. They told me that the could get me a new truck with the same payment. They hung up when I told them I don't have a payment.

 

THIS ^^^^^^^^^^^^^^^^^^^^ Very nice

 

I have a plain jane PreRunner DC. The only way I'd do it is if I could get the TRD Sport with nothing down including TTL. I am not looking to spend anything more than I am paying now a month and that's that. I don't think it would be possible.

NADA and KBB are $500 difference. You can settle at $22k... My truck cost me $22,500. They would have to put me at 0 or 1%, which I know isn't going to happen. My credit was better when I bought my truck and the best I was able to get was 6.9%.

 

Indeed, but my post count is going up

 

The trouble with this is that you're automatically losing 4%, rain or shine, no matter what, on the money you've borrowed. You may make money in stocks. Your approach makes more sense when times are good, like the late 90s, but we ain't there anymore.

You know what makes more sense? Earn money, buy the truck, and spend responsibly so you still have money to invest in the stock market.

I'll give you a hint: Bill Gates and Warren Buffett don't take loans to play the stock market for good reason. Trying to make money with loaned money is a good way to get up shit creek with cash you don't have.

The money is even cheaper if you're not paying it off all the time.

I'd like that too. Unfortunately, this isn't actually what you're doing.

Here's where we get into my huge disagreement. Well, I'll say it. Here's where you're utterly wrong. I realize people justify car loans to buy cars they can't afford. Whatever, that's not too terribly irresponsible.

However, when you extend this to "I will always have a car payment, therefore I'll think in payments" the amount of money you waste is enormous.

Trading in a newish vehicle IS always a bad idea, because you're trading in a vehicle at the worst possible time. The fastest depreciation is the first two years. You're buying a vehicle new, letting it depreciate as fast as it will, and then dumping it. That is always the best way to lose money.

I mean, again, there's always exceptions!