Cash in hand towards current loan or as down payment on new?

Thinking about trading in my '17 DCLB SR5 for a new DCLB OR (seat warmers in Maine are nearly a must). I've got positive equity on the current truck and some cash in the bank. When considering equity in current vehicle reduces the tax on a new one, does it make more sense to apply cash towards current loan right before trading in or use it as down payment in addition to trade in value? FWIW: I have an a high enough credit rating that bringing cash to the sale won't really affect APRs.

I'm sure there are articles/answers out there and I'm just going about asking the google universe poorly.

*EDIT: Primary reasoning for looking is I'd like heated seats, sunroof, "leather" (dogs) and dual zone. Not NEEDS but wants.

 

It doesn't matter.

 

i would use it as a down payment to avoid the money limbo. but i think either way you are adding money towards your new truck. (it may not make a difference)

 

At initial blush, I'd think so as well. All things being equal, putting money towards current loan increases the equity and thus decreasing the taxed sale price. I'm by no means financially savvy but that appears smarter than paying more in taxes and thus additional interest on said tax. No?

 

Do not trade it in! Sell the truck outright! If you have proper credit negotiate with several dealers to get best deal that will involve some money down I’m sure... get that new truck.

 

The taxes are on the difference between purchase amount and trade amount. Equity isn't part of the equation.

 

@MYNEWTAC Believe me, I'd much rather not trade it in and sell it privately. I imagine right now mine would sell quickly but can't be sure and since wife and I work in opposite directions and different schedules, a single car would be difficult.

 

That is what I mean, poor terminology on my part.

 

Got any friends in your area that can drive you to the dealership? Also Uber is cheap

 

For the win!
OP if your truck is in good shape and well maintained,,, there are options of good aftermarket seat covers with heat.

 

Haha fair enough. There isn't a single DCLB OR w/ premium tech package in all of Maine--per dealer sites as of yesterday. So I'd have to order it and the problem occurs if someone were to buy mine immediately and I'm left ~3mo until new one arrives. Could easily get stuck playing the waiting game to sell then new one shows up and haven't sold it and then dealer has you over a barrel on the trade-in.

 

@Squatting Pigeon Thanks! I'll check them out! I mean, I'd much rather not have a car note extended further.

 

agreed trade makes sense lots of moving parts and pieces unless you have a buyer lined up with a truck ready at the dealership. I have been in a similar situation when a vehicle was totaled and i needed a car quickly in those situations its easy to make bad choices , settle , or not get a good price on the vehicle.

 

I'd played around with the Toyota builder site in the past but wife's '14 Rav was in for service on Monday and she ended up leaving with a new one primarily because they offered her over the private sale blue book value. Got me thinking about how hard up dealerships are for Tacomas (new & used) so the timing is still good for getting better trade in offers. And to be honest: it made me a envious!

 

Mainer here as well, I would if you have the funds to do so.. clean up your current truck, get it detailed (or do it yourself, save some $$, list it locally, facebook marketplace, craigslist, and the like.. ) if you can swing both truck payments/financing for a few months go buy your new truck, while you still own the current one.. and sell privately.. dealers will only give you within 2-5k (lower than) market value based on KBB/NADA values. if you want a quick sale, price it in the middle to lower range of what NADA/KBB values it as..

if you have mods on the current truck that go with it dont expect much value in selling them with the truck.. move them to the new one...

if they give you a higher % rate for the new truck due to debt to income ratio, you can always refinance once you sell the current one, and avoid being down to 1 vehicle. other option is to get a cheap rental car for a few days after you sell yours, and then go buy your new truck..

there's always options, but trading in, you can expect to lose some $$ on the trasaction..

 

This ^

Trade in is a win for the dealer. All day, every day. For all who rave about the tax delta, just gross up the selling price to cover that.

But this is the answer IMHO ^

Let's repeat. For emphasis.

 

@Scott17818 Only "mod" is an AAL and 888s. Those went on this past summer and I kept the original coilover assemblies so I'd swap them back in and leave the AALs. But agreed, what makes the most sense is just aftermarket butt warmers. Just got the itch thanks to the Mrs.

 

I'm soooo happy my heated seats are NOT leather. They just suck in the winter and burn your ass In the summer. Only wish my Taco came with a heated steering wheel. Those are sweet. Been toying with the idea of modding a Lexus steering wheel.

I agree with others about just adding heated seats to yours if your love your Taco.