Loans?!

Alright I've never bought a truck with a loan. Current Tacoma I bought cash, but I've been thinking about the TRD PRO and was wondering what kind of a down payment is required? I have good credit and everything. Just trying to see if there is a minimum down payment or how it works. Thanks

 

the bigger the down payment the smaller the monthly payment.

 

If your credit is good most banks will let you go with no down payment at all if you want to. just keep in mind if you go that way you will owe more on the truck than its worth for a lot longer time. I think you can get better rates the more you put down too.

 

Sweet that's what I was wondering. I wouldn't mind selling my truck now for a down payment but then I don't have a truck until I get the new one so I would be without a vehicle unless I rented a car lol

 

If you have the new one picked out, just advertise yours. When it sells, tell them they can meet you at the dealer to pick it up.

Do the paperwork with the buyer on yours, then do the paperwork on your new truck. It can be done. If you can't get everybody on the same page, sell yours and rent a car for a couple days. There are new ones made every day. You generally only have one or maybe two buyers for yours who will accept your terms. If somebody has to give to put it all together, don't make it your buyer.

 

As far as selling your truck outright vs trade-in?
Don't forget to calculate the tax advantage of the trade-in, if your state offers that - like here in WI.

Make sure you get more for an outright sale when you add in the trade-value the dealer is giving and then the lack of taxes you'd have to pay as the trade lowers your taxable purchase amount. Need to compare it both ways.

I got rid my 2013 RAM last year. Couldve got $30k cash for it but took the $29,500 at the dealer.
Cause then when I got my new Rogue I only paid tax on the amount OVER $29,500 vs tax on the entire purchase of the new SUV.

Something to consider. I dont always advocate trade-ins but if the math works...

Say the SUV was $32,000:
1. Buy it outright and pay sales tax of $1792.00 here in WI. (5.6%)
2. Trade in the RAM and pay sales tax on the balance due of $2500 for $140.00

Thats an effective tax savings of $1652 I dont pay WI for the new SUV.

I would need to get $31,152 cash for my RAM to make the deal even-out if I went in and paid cash vs the trade in.

So yea, We can get more if we sell it outright but make sure its MORE as it should be..

 

Washington (where OP is as well) has the same thing, except that sales tax is anywhere between ~7 and 9.5% depending on municipality so the trade value is that much more with the credit. It was pretty much a wash with my last car and it saved me the hassle of private sale.

 

A rule of thumb is 20% of the "out the door price" is what you should put down or at least get close to it. It's best to always put something towards the payment! Even if it's 5%.

This will offset your depreciation of the vehicle and keep you at, or ahead of the yearly depreciation and your value "all even". (Meaning if you had to sell, you wouldn't owe money).

A good strategy is to go for 60 months financing to keep the payment low, but shoot to pay off in 48 months or less.

This is what I did for my Tacoma and I paid it off in three years. That down payment honestly made ALL the difference.

 

A lot of websites have calculators to see the comparison between down payment, monthly payments, and interest rates. I kept playing with the USAA calculator and figured out the best interest rate and based my payments on that. Once my special order came in, I sat down with the 'upsale dept' and they tried to sell financing and extended warranties. They could jack the numbers around, but never could beat what I had already researched and locked in. The sales guy was cool, but persistant. Do your homework and find out what rate you qualify for, then play with the calculators.