Any good math / numbers folks around here?

So due to the crap happening to my truck and a few other reasons (bad memories). I’ve been looking at dealerships. I can get a Tacoma under MSRP (wouldn’t say over the internet said to come in person but can definitely get it “cheaper”) and there is also a finance rate of 4.49% for 72 months going on. I am currently financing a 2017 Toyota Tacoma 4x4 TRD Sport at 5.22%. I owe a lot of cash still on the truck (41k to be exact) damn $3000 extended warranty I bought lol.. anyways I think my truck trade in is around 32k. Would the lower finance rate be worth my time over the long run?

I need advice.

 

Going 9k in the hole doesn't make sense to me.

 

you are carrying over $9k if they give you $32k for yours. Are you going to put down anything also? You are not guaranteed the lower interest rate and probably will not get it with the $9k carry over.

I believe you can cancel the ext warranty, its a PIA to do as you have to go back to the dealership you bought the truck from (at least here in TX it is).

 

Hell no it won’t! 4.49% is still a garbage rate! Keep your 17 for a few years and make your payments until it is at least worth as much as you owe on it!

Keep it for the 6-8 years you financed it for and use it as a tool to improve your credit score!

Also, learn to monitor and improve your credit score!

 

So just ride out the truck for many more years right? I was banking on that lower rate but yeah that makes sense they would be iffy with that 9k carry over. Ugh the colour i hate because i got the colour the "ex" wanted lol. Now this vandalism stuff and hit n run really irks me. But im just being silly right, my truck is awesome????

 

It's worse than that.

You owe $41. Your interest on your current loan is probably going to be another $5-6. So you're going to end up paying $47.

You get $32 back. You're still going to have to pay your full loan at $47. You've just lost $15k.

 

So they would still charge me the full interest on the 8 year term if i was to trade in early?

 

Salmonmigration is right. Also you’re pushing that negative equity out for 6 years and you run into problems with needing GAP insurance (truck is worth less than loan amount). And you will have to keep the truck even longer before you’re able to sell it or trade it in at a break even.

 

I say look into credit unions or banks to see if you can refinance into a lower rate.

 

Your loan is worth more than your truck. Unless your loan is through the same dealer and they're willing to forgive it, which is not gonna happen, nobody is going to give up that free money.

 

so how bad was this "hit and run"? Did you go through your insurance to get it fixed? If that pops up on a CarFax, then they will give you less for your current truck.

And you financed for 8 years? Holy S!@#!

 

Woah I missed that part. Dude...

 

Yeah 8 years lol $275 bi weekly!! haha

 

Yeah with an 8 year loan converting to a 6 year and negative equity will increase your Payments to about $790!

 

Thank you. Thank you to everyone that commented too. Im sticking with the 17 for at least 3 more years lol. See where I am at then :3

 

Refi at a credit union. Your truck will most likely still qualify for new car rates.

 

Like everyone said - refinance to get lower interest ... maybe lessen the term to 5-6 years if you can afford it.

You're gonna be in the negative for a long while UNLESS you start paying extra each month. Remember, you pay mostly the interest in the first few years .. and with 8 year financing, that's a boatload of interest.

 

biweekly as in twice a week?!?!?!?!?! lol biweekly is a weird word. Anyway since it was in an accident if you went through insurance you can ask for a check for the depreciated value of the truck.

 

That’s why (I hope) you have insurance.

Long and short of this thing is that if you don’t have a LOT of cash to throw at this, then it’s a bad idea. I’m talking $10-15k to put down.

 

2 options in my opinion. 1. Sell the truck privately. Take the money to pay off loan and get into a truck you CAN afford (note: big difference between can afford and want to afford) 2. Keep the truck and keep making as many payments above your monthly payment until you get out of a hole. Then sit down and look at your options.

Financing over 8 years is never a good idea. Basically it's your dealer trying to sell you a car you would not be able to afford and masking the lower monthly payments. I would not take negative equity and dump it again into a depreciating asset. You'll never get out of the hole,regardless of a slightly lower interest rate. That's just my $0.02