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Sell Tacoma to pay off 2nd mortgage. Need Advice

Discussion in '2nd Gen. Tacomas (2005-2015)' started by rangejeep, Jul 18, 2011.

  1. Jul 18, 2011 at 8:24 AM
    #1
    rangejeep

    rangejeep [OP] Well-Known Member

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    Need some advice….
    I’m seriously considering selling my 2005 Tacoma DC TRD OR w/ 115k miles and using the profits from that sale to payoff the remainder of my 2nd mortgage at $7200.

    Here are the details:
    Truck: Today I owe $10,800 37months left on note @ 5.25 apr (originally for 73 months) $330 month
    2nd mort: Today I owe $7200 72months left on note @7.5 apr (originally for 180 months) $200 month
    I owe $10,800 on my Tacoma and if I sell for $18k locally giving me $7200 left over to pay off 2nd mortgage. Since I still need a 2nd car purchase used car for 36 or 48 months at same monthly payment for the Tacoma around $330. After everything is said and done, I’ll only have a car payment and eliminate the 2nd mortgage payment at $200 a month. I wouldn’t buy a new car at $530 a month, even though that would be nice. The goal is to eliminate my monthly debt.
    (I looked into refi both and I’m so far along into the payments I’m better off keeping them the same)
    Should I sell my truck? Thanks for your help.
     
  2. Jul 18, 2011 at 8:35 AM
    #2
    Pugga

    Pugga Pasti-Dip Free 1983 - 2015... It was a good run

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    Some things to consider, how dire is this situation? You don't have to answer these questions since your personal finances are none of my business but are you trying to eliminate the 2nd mortgage payment because you're struggling and NEED to eliminate the payment? I'd seriously look at used car values, you may not get the full $7,200 in profit that you're hoping for leaving you without a truck, still paying the mortgage and having to get another vehicle. Have you thought about trading the truck in for something more reasonable and lowering your car payment that way? That would allow you to put more money into the second mortgage and pay it down quicker.
     
  3. Jul 18, 2011 at 9:58 AM
    #3
    JKD

    JKD Well-Known Member

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    Can you get $18k for a 6+ year old, 115,000 mile truck?

    If so, yes. You could buy a $10,000 vehicle on a 36 month note at 10% interest for $325/mo. If your objective is to reduce debt, this is not a bad option. You can get a decent, reliable used car for less than $10,000.
     
  4. Jul 18, 2011 at 10:08 AM
    #4
    bjmoose

    bjmoose Bullwinkle J. Moose

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    I bet you can't get as much for your truck as you think.

    Also, you're talking an elaborate debt swap here.

    After you sell the truck and pay off it's paper you're talking about taking out ANother car loan.

    Try getting a second job? More money coming in to pay down debts, and less free time to dream up new ways to spend money you don't have.
     
  5. Jul 18, 2011 at 10:08 AM
    #5
    Large Farva

    Large Farva Does this look like spit to you?

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    Yes, definately. Pay off the mortgage. It won't be hard to find another used Tacoma or any car for that matter. My brother in law did that very thing, except he didn't buy another car right away. He carpooled and struggled without for a couple months after he got rid of his debts then bought a used lexus for 12k. Now he's got a payed off house and a payed off car.
     
  6. Jul 18, 2011 at 10:16 AM
    #6
    aficianado

    aficianado Well-Known Member

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    back to bone stock.
    1st step. quit calling it "profit".
    i'm not so sure you can sell the truck for that much. if you dont, you will still owe money, and when you buy the "new" beater..you may be in the exact same boat, without a tacoma. i would seriously check the math.

    if it were me, i would cancel other junk. cable TV, internet, other non-essentials.
     
  7. Jul 18, 2011 at 10:31 AM
    #7
    wmdpowell

    wmdpowell Well-Known Member

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    Replacing a good running vehicle for an unknow is always scary to me.

    Refinacing a small equity or used vehicle loan often does not offer great savings as you found out.

    An option that might work would be refinancing the mortgage and 2nd into one new mortgage. Rates are quite good right now and you could save some good money.


    Let me post my website www.tdbank.com/billpowell check / call if you would like to go over any details.
     
  8. Jul 18, 2011 at 12:45 PM
    #8
    RichardTRD

    RichardTRD Well-Known Member

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    I was thinking that with the price of a new Tacoma must of us would have to take a second mortgage out just to buy one :)
     
  9. Jul 18, 2011 at 12:57 PM
    #9
    RoyR

    RoyR Well-Known Member

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    Don't do anything crazy like that...going to end up in deeper shit. That Tacoma will run to 300k miles, no other used car can do that. You will save more keeping it!

    PS. Borrow $7200 from a family member and pay the loan off in 36 months @ $200.00 a month.
     
  10. Jul 18, 2011 at 1:18 PM
    #10
    o5iiawah

    o5iiawah Well-Known Member

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    sell the truck, get your $7k over and above the loan, put $4k on the 2nd and buy a $3k beater.

    You are already in debt, I would not swap or accrue new debt
     
  11. Jul 18, 2011 at 1:40 PM
    #11
    Simon's Mom

    Simon's Mom Wag More Bark Less

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    Stock for now

    This is what I would do, refi the 1st & second into one.
    Depending on what you owe on the 1st & what your house is worth you make be able to take cash out & payoff the tacoma.
    All interest then is a deduction.
    Not sure what your numbers are etc.
     
  12. Jul 18, 2011 at 1:44 PM
    #12
    paintdiddy

    paintdiddy Machine gun shits

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    What he said
     
  13. Jul 18, 2011 at 4:01 PM
    #13
    horwitzs

    horwitzs Well-Known Member

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    Don't borrow money from family unless you are in dire straights and have no other choice.
     
  14. Jul 19, 2011 at 12:17 PM
    #14
    Muscles

    Muscles Well-Known Member

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    Never sell a tacoma!! Haha keep it dude, like others said try and borrow the money from a family member and pay them bak in a couple years, ull end up saving money by keeping ur truck. And dam thats a cheap house. Wish prices were like thatin cali lol goodluck dude
     
  15. Jul 19, 2011 at 12:21 PM
    #15
    RideFast

    RideFast on the flats.

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  16. Jul 19, 2011 at 12:24 PM
    #16
    KBToyota

    KBToyota Well-Known Member

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    My wife and I did the Dave Ramsey Financial Peace University class at our church... AWESOME!!!

    $7200 isnt THAT much $$$ if you really tough it out and cut out all the extra spending you can probably pay off the mortgage 12-18 months, Then do the same with the truck. 36months latter you are debt free. Then DONT take out a loan for a new car, whatever you plan as a monthly payment ($300) save it in a moneymarket savings account and drive the wheels off your Tacoma. 3 years after that you have almost $11k not including interest saved for a new vehicle.

    If you are real good save $550 then you would have almos $20k.....
     
  17. Jul 19, 2011 at 12:25 PM
    #17
    Seabass

    Seabass Chrome won't get you home

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    You don't really care, do you.
    Get a 3rd mortgage and pay off the Taco with it. Lower interest rate!
     
  18. Jul 19, 2011 at 12:29 PM
    #18
    RideFast

    RideFast on the flats.

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    My dog ate my book, I just ordered a new one!
     
  19. Jul 19, 2011 at 12:39 PM
    #19
    KBToyota

    KBToyota Well-Known Member

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    And have a loan for the rest of your life... Id rather pocket the money than give the bank interest.

    I just sold an 06 Tundra with 50K miles, paid off my Van and bough a 96 Tacoma... No more payments and the extra money is now going towards a new kitchen and garage WITHOUT needing loan.
     
  20. Jul 19, 2011 at 1:04 PM
    #20
    Seabass

    Seabass Chrome won't get you home

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    You don't really care, do you.
    I should have put a sarcasm footnote in my post :eek:
     
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