Does it makes sense to sell a 3rd gen and buy a 2nd gen?

Honestly I own a 2nd gen Tacoma and I drove a 3rd gen when I had some maintenance done, and I like the way the 2nd gens drive a lot more. You'd be happy with it

 

You have a paid off truck, probably still with a warranty and no unknown issues that you'll be coming out of pocket for, that's the money saver. You're getting a large bonus in July, and if you save enough up to then you could have money. You aren't going to free up a lot getting rid of your truck unless you don't get another one anytime in the near future. Not only that, you'll be losing the reason/investment of having a newer paid off vehicle and fully consuming the initial depreciation without amortizing that cost over time. The next owner will love you for it, I know I did when I bought my 2014 in 2015 from the original owner with 3,500 miles. I am assuming you got it new, since you traded your 2nd gen in for it...my .02, if you're going to get another Taco just keep it and save elsewhere. You need 20% down (really just in equity) to avoid PMI, figure out your house budget and save that 20% plus another 3-5k buffer for closing.

 

But, then most of that 30k would be spent on buying another truck, swapping the front end and installing supercharger. I don't see how you'd be financially ahead.

 

I may get flamed for this but you sound like you don't have a clue or a plan on what you're doing. You state that you need to free up cash so you're going to sell your 3rd gen and then buy a 2nd gen for $10k... that's not going to happen unless it's a total POS. But then you state you're going to dump money into it and buy a supercharger, which is going to run you around $5-6k installed. Talk about throwing money away that you're supposedly trying to free up. What you say you want to do is diametrically opposed to your comments about the 2nd gen you think you should buy.

I had a 2014 Tacoma TRD Sport and now have the 2020 version of it. I'll take the 2020 any day of the week over the 2014. It's just as powerful, the manual trans is a ton better, gets at least 2 mpg better, and has way better features than the 2014 could ever dream of having.

For me this is a no-brainer. Keep the 3rd gen and figure another way.

David

 

I would proceed very carefully then. The last time I went through a home loan was four years ago - They get crazy intrusive nowadays, questioning every single financial decision you make. Dropping a truck to purchase the home will certainly put you in the hot seat. They won't like it. Depending on your credit and other finances something like that has been known to kill the loan. I would find a way to keep both and make absolutely zero major transactions for the 60 days preceding the close.

 

Good point. I might just sell the car after the close.

Thinking about driving a $1000 beater vehicle and putting the cash towards my home loan. I want to pay off my house ASAP. I think if I work really hard, I can pay off my house in 3-4 years.

Then I can buy whatever vehicle I want.

 

It's a good time to be financing a house, with the low mortgage rates and all...

 

That’s nonsense. Who did you finance with? The Russians?

Most mortgage lenders don’t give a shit as long as your credit score and DTI are sound.

Also, lol at OP soliciting financial advise on a truck forum. Maybe call in to Dave Ramsey, he’ll tell you to eat ramen until all your dreams come true

 

Yeah. The loan officer already told me to hold off on transfer money or depositing large amounts

 

If you have cash flow problems that otherwise would require you dipping into investments, retirement etc then you should defaulting be selling the 3rd gen. There’s really no debate. That’s a massive depreciating asset.

The only question is if you should go out and immediately buy a 2nd gen. I’d sell the 3rd gen, buy a beater and reevaluate when you get that mid year bonus.

 

When was the last time you financed a house? Shit has changed since the 2008 bubble - most lenders now want to know exactly where that down payment came from.

I got into a big fight with my bank over a measly 2000 bucks. I withdrew 2000 in cash to put down on a short term rental, which I cancelled after seeing some things in the final walkthrough, and deposited the same 2000 a month later. That money wasn't even part of my down payment, but because it was an untraceable cash deposit, my lender freaked. They wanted affidavits and witnesses on that money. For 2 grand, despite me having a completely traceable 25% down and top tier credit. They only relented when I told them to cancel the application, I'll just trot my happy ass up the street and find a bank that actually wants the loan.

And that's not exactly a unique experience either. I know a lot of people that bought/sold recently and they had to go through similar hoops.

 

This is a Tacoma truck forum not a financial forum. Why in the hell when you have a serious financial situation or question would you ask financial questions of a bunch of strangers you know nothing about? Not a single responder here may know Jack S..t about money or finances. Not only that but no one knows your complete financial situation. Cant answer without full disclosure of your finances. So are you going to take the advice of a stranger over the internet who may know nothing, nada, zilch..... may be dumb as a box of rocks.
Find some professional financial advice and get you shit together.

 

3 places in the last 6 years actually. All hassle free and with three different originators. Sorry you had an idiot LO/underwriter. At any rate, that’s not because of the 08 crash, but you can thank GWB and his idiot friends in Congress for that Patriot Act B/S. If that down payment has been in your account more than the last 2 months worth of bank statements the underwriter reviews, there won’t be any questions. It didn’t sound like OP needed the money for cash down on the house. Even if, it’s not a problem to sell a truck because there will be a record of that. Hence, nobody getting nervous about you laundering terror funds.

 

Some are better than others, but it's a fact that in general lenders are a lot stricter after the crash..to be fair, they should be. Plus they were so loosey-goosey before..

 

^^^^^ this and...

Does a duck with a boner drag weeds ?

 

Personally, I rented a 2018 and then Drove my 2013. My 2013 has 50k and is paid for and now I just keep spending car payments on mods ang getting scratches in my paint

 

No shit sherlock.......Because this is a place that folks can pretend be what they're not.....LOL
There are "Experts" on "Everything" on TW, just ask....LOL

 

Ding ding ding...we have a winner! OP, this is the best advice for your predicament.

 

If you have a good lead on a good cheaper 2nd gen, then I'd do it in a heartbeat. $10k 2nd gens are out there, even in good shape, but you have to be lucky to find one. I just bought a 2007 AC 4x4 6 Speed TRD OR back from a buddy for $9500 with 180k miles. It'd probably go for ~12k most days, which would still be worth it versus a $30k 3rd gen. Don't be afraid of mileage, be afraid of poor maintenance and shoddy mods. I have a friend that uses 2nd gen Tacos in the forestry industry. Never even washes them, and he gets ~350k miles on them with just basic maintenance, and he's in 4lo in the woods multiple times a week.

And counter to some of the above BS, selling a $30k asset you aren't getting $30k of value from ALWAYS makes sense.

 

You answered your own question. You will not be further ahead financially to sell your 3rd gen and buy a 2nd gen. At most you'll free up a 5K unless you get something will a shit ton of miles or other issues. Once you factor in taxes from the swap and other incidentals it will be a fools errand.

Look elsewhere or swap to a less expensive asset (generic low cost car) and learn to live with it.