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

one day

 

What happens if you've gotten 2.5k posts in 1 month?

 

Your mother.

buttbuddy?

 

It's just math...

5 year $25,000 loan @ 5% Breakdown:
After 2 years you would have paid $11322.74 total (principal + interest)
Your remaining principal on the original 25K loan would be $15741.30
That means you paid $9,259 towards the principal and the other $2,063.74 in interest.

Now let's say that $25K loan covered the entire cost of the vehicle (for simplicity) and Tax, Title, License equaled $1,500 total. Now you go buy a new truck for the same $25,000, trading your truck for $20,000. That means you lost:
$1,500 in Tax, Title, License TWICE ($3,000)
$2,063.74 in interest on original loan
and an additional $3,500 in depreciation

This leaves you $8,563.74 in the hole* even before considering the new loan

*[assuming my math is right ]

 

this

 

Offices look like such a fun place to work...

 

brah. I cruise beach sit in my dorm room pretending to study. I used to landscape back at home. But now I just bum off of my savings (Until I find a job)

(I'm actually talking out of my ass. I was a assistant receptionist for awhile)
Gonna have to find a job for extra cash until I contract with the ROTC

 

Just get some of these I cut grass in them and I barely hear my 20+ year old snapper using them. $20 at your local Walmart style store or an electronic depot like Radio Shack.
http://www.skullcandy.com/shop/earphones-earbuds/inkd.html

 

To OP unless you're looking to go 4x4 or they make you a hell of a deal I wouldn't do it. If it were me and I was close by I'd go see what kind of offer their making, but like I said hell of a deal or no-go.

 

Figured the Army's more for me. my mom's a CPA and always just laffs if I suggest me getting a desk job...

 

They are very confortable to me, but I am used to things in my ear since I've worn hearing aids all my life. They come with three diffrent sized buds, the mediums fit me perfect, I super glue them on so that they don't fall off while in my pocket as they have a tendency to do.

 

Skullcandy Titans FTMFW

 

LOL They did not bite.... Would not cut me a check for what they said they would offer.....Had to be on a new purchase. LOL

You speak words of wisdom that will fall on deaf ears. People here believe the Tacoma doesn't depreciate and sells USED for $2k less than new. and the worse of all...Perpetual auto payments.... $500 a month for 40 years...What that's a quarter Million to drive a New Tacoma for a day every few years

 

I've had some that do that to me, if you're talking about the hard plastic ones that you stick in the ear like these then yes they do the same to me, but they're the best headphone's I've ever owned. They have rubber inserts and the rubber peices move around and contour to your ears, and the plastic parts don't push on your inner ear so no cherry red ears yet for me. The best I've heard were some Bose over the ear but they are a little pricey for me. But to each their own, they have great SQ IMO

 

some dealer called my dad back 01 ... not sure how they even got his name since his 98 silverado was driven here by him from Mississippi and is a company vehicle ... he told em theyd have to speak to his boss about that .... needless to say they hung up

i will never stop laughing if the dealer here that i took my 97 t100 into for a recall calls me and says someone wants it ... id be like 7k cash or the 01 tundra crew 4x4 with 90k on it that you have on your lot, no way im making any payments.

 

I will call the dealership tomorrow and lay it down. If the sales manager can't take a minute to talk to me, then I can't take the hour to talk to him.

 

You're right. Well, sort of. You can simplify it. Paid ~11k; got 5k in equity, so 6k in the hole (depreciation + interest). Now, I'll use that 5k to finance ~24k on a ~30k truck at a lower interest rate, but increased principal.

Although now, I've got a new truck that I like more, at lower payments and I'm under warranty for another two years. The extra costs are Tax, Title (license is already paid), plus ~3k in additional interest and whatever depreciation.

Roughly 4k over what the old truck cost.

So, an upgrade, and as you point out, nobody rides for free. But for perspective - 150 dollars a month in cell phones works out to 3600 dollars over the same two year period. It's not an obnoxious cost in the grand scheme of things.

In my mind, it's a sunk cost anyway because you aren't going to not have a car or truck and there are going to be costs associated with that regardless. As I say, the money gets spent on something.*

Now, of course, the unanswered question is "why new?". And the the answer to that is : I didn't bust my ass through an engineering degree to not have a new(ish) truck. I know the cost is high relative to other options (walking, taking the bus, smart car, etc.), but I ate ramen noodles for 4 gorram years, dammit. I earned it. So, for me, it's a priority relative to other options** - It's what I work for. Well, that and pheasant season.

This isn't the case for everyone, clearly.


Now, trade-ins on recent Tacomas are sky-high. Its sort of retarded that my current truck is worth so much.*** In a rational world, it wouldn't be. But there it is.

If you like owning new, I think this is a good time to consider upgrading - I just can't see the used Tacoma market staying this high. I expect you'll make more on a trade now than if you waited a year.

But, no, the upgrade isn't free - but, it can be a decent deal if you can swing the cost.


* This is my motivation for the concept of the auto as a service instead of product, and it informs the rationale of using the monthly payment as the driver for financial evaluation. Its not perfect, but serves to sort of rationalize the costs among the various household expenditures. In that comparison, the cell phone is a fucking ripoff, man.

**of course, I am putting money into a 401k and other savings/retirement accounts. Just not all of it. Carpe diem and all that.

*** Truth told, If I had a time machine I'd go back and lease it. Well, first, I'd go back and not knock up that stripper. But after that, I'd go and lease the truck. I'd be in the same place but would have paid less to get there. Win some and lose some, I guess.

 

Rationalization can really work wonders on our otherwise logical brains. Imagine if the technology we developed could rationalize; the amount of damage done would be astronomical!

If you can honestly say you are willing to take a few to several thousand dollar hit (after TTL x2, depreciation, and cost of buying new) all just to give the dealer the profit of trading your truck [then flipping it] and the markup on the new car, then go for it. I would recommend to lowball them on the new car provided your trade-in value is good.

Could you give us as specific of information as possible, because I thrive off the data and numbers. If I can crunch the numbers and do some cost/benefit analysis, I can try to argue either way. Things like the dollar amount paid for the truck (and its' features), interest rate, term length, whether there is a pre-payment penalty, etc.