Dilemma

Paying off a vehicle has nothing to do with how much you lose by selling it...right? If it does, I'm not seeing it.

In my opinion, it's time to be a man and do what's right for your family; sell your Tacoma.

Dan

 

I wouldn't trade in the Taco. The hit you're going to take isn't going to make it worth it. Would you finance through the stealership or through a credit union/bank? If you finance a trade-in through a bank, you're looking at a pretty low interest rate (assuming you have decent credit... three 2010/2011's sitting in your driveway, 2 paid off). If you can get around 3.5% apr on a 48 term loan, you're looking at $558.85/mo on the Tundra and $491.78 on the FJ. But keep in mind the hit you're going to have to take on the Taco, and paying off the unpaid balance. Dollar per dollar, I wouldn't trade/sell it and buy another car. Either keep the Taco, or sell it and don't buy another car (you have 2 cars already, both paid-off, and there's two of you.)

Edit: I didn't see you're considering selling the Scion. It's not a bad idea, I'd probably do it. BUT: keep in mind that if you sell it, DON'T USE THE SALE MONEY TO PAY OFF THE TRUCK! It's more financially responsible to put the sale profit in a MM account or similar, and withdraw that money monthly to make the monthly payments on the Taco. Paying off your loan does NOT decrease your monthly payment.

 

I know you are not looking to get bashed and other say to be a man - whatever.

Look Here - i work in finance for a living and will give my opinion.

Seems you didnt think the whole new car and payment thing fully before you made the deal. It happens i see it everyday.

Refinance plain and simple. If you truly need the truck this will be your best bet.I know you have a great rate but believe me any financial institution would rather try and work with you rather than have it repoed. Go out as far as possible. If you could get a 1.99% im sure your credits fine and this tells me you are responsible enough to understand how credit works and even a 4-5% is not bad on an auto loan.

Dont trade the truck in to get something different all that will happen is you will go upside down even further and then have to pay sales tax again. (dumb move)

Some one mentioned to sale the scion and dont put it towards the truck and to move it to a moneymarket account. Thats a joke you wont make any money that the overall interst will be consuming on the truck note.

money market and cds are junk -- yes i said it ---
(you have a better return on your investment in the stock market or the craps table )

 

Thanks for the replies.

Believe me, i've been doing the math on this. Getting rid of the taco now, and getting something used/cheaper will be cheaper for me in the next 4-5 years.

It just helps to get other opinions sometimes.

But let's say I do decide to trade in the taco for something cheaper. Say I get $28k for my truck, but I owe $32k. Does that mean the extra $4k I owe will get stuck onto the price of whatever I trade up for?

 

Yes; if you finance the next vehicle. The 4k will roll onto the new loan or you pay it.

 

Thanks. And will doing that hurt my credit? Or will my credit be fine as long as I make the payments on time?

 

"Yes; if you finance the next vehicle. The 4k will roll onto the new loan or you pay it."

and you will also have to pay sales tax again -- do the math its not worth it to trade.

Another option. get the $28k for the truck - and then get a personal loan for the $4k diff. and then your payment will be about $175 a month for 2 years and then continue to drive the scion and take it as a lesson learned.

 

Call the lender, ask if they will give you a onetime restructure of your loan payments if you put down $XXXX amount of dollars. If they agree then sell the scion and restructure your current loan keeping your interest rate and cutting your monthly payments. Some lenders will work with you, never hurts to ask.

Cam

 

trading in will not affect your credit as much may drop your score a few points but nothing major its still only refelct a new unit purchase since you will be trading in your current vehicle.

its your decision of course - but make sure you weight all your options and factors.

 

a lender will never "restructure" a loan ---- But they will refinance it.

since in their system they have to create a new loan to payoff the old loan number. You cannot modify an existing agreement.

 

Why do 2 adults need three vehicles ?

Pick two .

 

Never is NOT true, I will agree that it is not always easy or possible to get them to agree but some will in certain cases. He owes a lot of money and if they felt he was in a bad position they would be better off to accept some cash right now. They don’t want to be forced to repo that car while still being owed $30K, it is too much to recover (I know that you would not let that happen OP just making a point). To say that you can never get a car loan (or any loan according to you) reamortized is totally false, there are many times that you can get a lender to agree to a onetime reamortization. Like I said before it never hurts to ask, I would want to have all of my possible solutions on the table before making a decision.

 

I will agree that it nevers hurts to ask.

But ive been doing this for over 10 years and ive never had a lender simply change a loan - thats why they call it refinancing ( refinancing is not a bad thing its simply redoing your current financing set up - thats it )

as far as the one time re amortization deal that ( flyfisher ) may be referring to - i have heard of this with mortgages but its a rare instance in itself

((( one more thing i dont see lender simply changing loans - its way more complicated then just switching some number. The reasons being is audits. No - financial institution wants to be caught up in an audit - Thats why its smarter to just create a new fresh loan )))

Im in know way a financial know-it-all but ive been doing this long enough to know what im talking about.

 

Keep the Tacoma and 4Runner (given that they will have the highest resale and are the newest), sell the Scion yourself to get the most money.

Take whatever cash you get for it, say $10,000 and walk into wherever you financed your Tacoma and tell them you want to put this money towards it and refinance the loan. Having the smell of $10,000 cash in front of their faces may motivate them more...or it may not, but either way, they get some of their money back while still earning revenue on the interest they're charging you.

Maybe keep $2,000 back in savings to cover anything that may come up with the kiddo.

You will also get a decent rate, given that your credit sounds to be decent, at another financial institution. Bank of America has always been good to me with car loans, and you can see what their rates are online. Maybe also try a Credit Union that you have access to near you.

Good for you for realizing you made a mistake with the Tacoma given your current situation - it will all work out, it always does.

Good luck!

Fink

 

Sell the Tacoma...keep the 4runner and scion.

If you need the bed then sell the 4runner

 

Thanks for the replies. I financed thru a dealership when they were doing a special, which is why I got the 1.99% and only 48 months instead of 60 months. Looking back, if I would have went for the 60 months and 2.99%, this wouldn't be an issue. I've already called and they basically said I could trade for another vehicle, but acted like they didn't re-finance.

I can always call and ask again.

The scion is probably worth $6k, depending on if I trade or sell outright

 

The dealership probably has no interest in re-financing anything. Call the loan provider, presumably Toyota Motor Credit, if you want to go that route.

I tried when I had my first Taco with a super high interest rate. I ended up trading in. I am paying about the same dollar wise, but got a better truck.

 

As stated above, I would work directly with the finance company.

I would also talk to your bank or a local credit union to see what they can do for you. With $6,000k down (or say $4k down, if you wanted to put some cash in the bank) they should be able to work with you on it.

Fink

 

keep the Tacoma and the scion for fuel efficiency and sell the 4 runner. Ull probably be able to pay off the tacoma if u sell the 4 runner. IMO. My 0.02

 

dont get the tundra. you will hate yourself for the cost of gas. get rid of the scion, or pick up that FJ. IMO.