I wish this was the case in California , we pay full tax
2015 trade in value?
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I wish this was the case in California , we pay full tax
4Rager
New member
My guess is they want to trade the SR5 for a Trail or maybe a Limited. In reality you can just add a rear locker and the SR5 is a perfect candidate for LT.
I think if you can get fair value on trade-in and then factor in the tax credit, trading in sometimes works out better! In the last 5 years I have purchased 14 cars (I know, I have a problem) and some of those were brand new and then traded in for another vehicle in 3-9 months. If you buy low enough you can trade in and break even! A few examples:
2010 Jeep Wrangler 2 door, brand new on special for $8k off MSRP (end of year blowout) paid ~$16k for it, traded in at 8000miles and 8 months for $16,750 on a new 2011 Subaru WRX that was on special for $4k off MSRP, only paid taxes on the difference so really got $18,425 for my Heep which I paid ~$18k for. This got me thinking and in my area with the right vehicles (Jeep/Subaru/Toyota) you can drive a new car every year and almost break even! I purchased a 2014 Tacoma doublecab TRD OR for $32,250, about $4k off MSRP. Drove it for 6 months, put 4k miles on it, traded in for $31k. Factor in tax credit on the new 2015 STi I traded it in for and that makes my net value at ~$34k on the Tacoma...If you put in the time (I search for deals for hours a day and for weeks sometimes) and buy low enough and find the right vehicles with the right options you can play the system a little and enjoy some new cars 3 times a year
2010 Jeep Wrangler 2 door, brand new on special for $8k off MSRP (end of year blowout) paid ~$16k for it, traded in at 8000miles and 8 months for $16,750 on a new 2011 Subaru WRX that was on special for $4k off MSRP, only paid taxes on the difference so really got $18,425 for my Heep which I paid ~$18k for. This got me thinking and in my area with the right vehicles (Jeep/Subaru/Toyota) you can drive a new car every year and almost break even! I purchased a 2014 Tacoma doublecab TRD OR for $32,250, about $4k off MSRP. Drove it for 6 months, put 4k miles on it, traded in for $31k. Factor in tax credit on the new 2015 STi I traded it in for and that makes my net value at ~$34k on the Tacoma...If you put in the time (I search for deals for hours a day and for weeks sometimes) and buy low enough and find the right vehicles with the right options you can play the system a little and enjoy some new cars 3 times a year
undignified
New member
0% interest was not available for T4R in my state. They were available for the Corolla, Camry and Rav 4.
sooperedd
Member
To take it to it's logical end, why spend CASH on a depreciating asset ?
Why spend anything on any depreciating asset?
:bravo:
Trying to save up for either buying cash or big down payment doesn’t make sense to me anymore. Unless for those who don’t want or have a limited payment in mind. On top of that seems base pricing always creeps up every year. By the time you’re ready to buy, pricing on same vehicle has climbed. Better of financing vehicle, if you have excellent credit IMO.
sch0enne
New member
I agree with this. I think some people get themselves into trouble with 84 & 96 month finance contracts which I never recommend unless you are sure this is your 5 year plus vehicle. I see way to many people trying to trade a car in 2 years later that they financed for 8 years and are completely backwards.
That is poor advice. Many people can make their money work better for them than sitting in the car.
Second it doesn't matter if you're financing or have the pink slip. It doesn't change the value of the car. Psychologically people tend to take less for a paid off car than an upside down car.
A bad choice is to put a large down payment because if you ever lose the car, you also lose that large chunk of cash.
In many cases, all cash makes sense. But I'd still finance then pay off in a few months to get a boost in credit.
Lineman
New member
1. No it doesn't... I don't have a credit score. No credit score needed when you don't finance anything. Also, in case you were going to mention. You don't need a credit score to get a mortgage.
2. Yes, if you're disciplined to actually put it to better use. You were planning on buying a brand new vehicle anyway "not just because you're getting 0/60" and trading in a vehicle that has numerous years of use left.
2. Yes, if you're disciplined to actually put it to better use. You were planning on buying a brand new vehicle anyway "not just because you're getting 0/60" and trading in a vehicle that has numerous years of use left.
Lineman
New member
Very true! Makes no sense to throw away money. But if you don't plan on taking public transportation you must buy that vehicle. That doesn't mean it has to be a 2016 model that costs $40K. Or one that you must finance for 72 months making a $500 payment.
Live within your means. I have always been taught, with the exception of a mortgage "an appreciating asset". Pay cash for everything. But this requires discipline with vehicles. You can't decide to pay cash every year on the newest model. Unless you like to burn money.
Some of us have 1 vehicle losing value, while others have 5 sitting outside depreciating.
Live within your means. I have always been taught, with the exception of a mortgage "an appreciating asset". Pay cash for everything. But this requires discipline with vehicles. You can't decide to pay cash every year on the newest model. Unless you like to burn money.
Some of us have 1 vehicle losing value, while others have 5 sitting outside depreciating.
Lineman
New member
1. Your first sentence is true, but requires discipline as life does.
2. Your psychology is dead wrong. It does too matter if you have the pink slip. That means you own the item and aren't a slave to the Bank anymore. Also, people who have a paid off vehicle tend to keep that vehicle until it blows up or rusts apart. A paid off vehicle is a nice feeling and people like that feeling once they have tried it. They don't want to spend their hard earning cash on another one and will definitely buy used letting the previous owner eat the bigger depreciation.
3. What are you saving that chuck of cash for then? If you're not using it to buy the next car outright, or a big amount in down payment on the new ride?
Those who make this statement clearly will never have the big chunk of cash.
4. No credit score needed when you pay cash.
2. Your psychology is dead wrong. It does too matter if you have the pink slip. That means you own the item and aren't a slave to the Bank anymore. Also, people who have a paid off vehicle tend to keep that vehicle until it blows up or rusts apart. A paid off vehicle is a nice feeling and people like that feeling once they have tried it. They don't want to spend their hard earning cash on another one and will definitely buy used letting the previous owner eat the bigger depreciation.
3. What are you saving that chuck of cash for then? If you're not using it to buy the next car outright, or a big amount in down payment on the new ride?
Those who make this statement clearly will never have the big chunk of cash.
4. No credit score needed when you pay cash.
sooperedd
Member
Some people have money to burn.
Some people could buy a couple or fifty more if they wanted to.
As soon as I hear "no debt" from someone, or the Dave Ramsey schtick, I know they are clueless about money.
Lineman
New member
Soop,
Yep, Dave Ramsey family here.
Please explain to us all here how having a paid off mortgage, paid off cars, zero credit cards, zero debt. A 6 month cash emergency fund, maxed out 401K's, college funds, ability to go and do whatever you like. Explain how that is
clueless..
Please explain why I must have a credit score?
Are you a Banker?
Yep, Dave Ramsey family here.
Please explain to us all here how having a paid off mortgage, paid off cars, zero credit cards, zero debt. A 6 month cash emergency fund, maxed out 401K's, college funds, ability to go and do whatever you like. Explain how that is
clueless..
Please explain why I must have a credit score?
Are you a Banker?
sooperedd
Member
That's all coolio if it works for you, but my comment was about "NO debt"; debt can be advantageous if used properly.
I wish I was a banker, I could borrow at 0% and lend/invest it at 21%; that is a great example of a money machine and how debt can MAKE you money. When you pay off a 3% APR mortgage, that is what you made on that money. On the other hand the money could have been invested in something as simple as a dividend paying stock at 12%. It is FAR more liquid and will make you more money in the long run.
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When we bought a new 2015 SR-5 a few months ago, the question I asked our financial manager was... should I take the money out of our retirement fund and pay cash to avoid the interest…which was going to be 4.2%…or finance it?
His reply: Can you make the monthly payment with no additional strain on your budget? If you can, finance it and use Toyota’s money to ride on (so to speak)and leave yours invested where it can make far more than 4.2% interest. Be sure that there is no penalty for paying off the loan early! Make double payments if/when you can.
As a double incentive in our case, cashing that much money out of our retirement would have put us in a whole new “taxable income” bracket and we would have had to pay additional income taxes next year equal to half the amount of the loan!
So we put $5000 down and financed the rest on a 5 year loan. At this time we are doubling up on the monthly payments and, barring unforeseen circumstances, will have it paid off in 2 ½ years.
ellis
His reply: Can you make the monthly payment with no additional strain on your budget? If you can, finance it and use Toyota’s money to ride on (so to speak)and leave yours invested where it can make far more than 4.2% interest. Be sure that there is no penalty for paying off the loan early! Make double payments if/when you can.
As a double incentive in our case, cashing that much money out of our retirement would have put us in a whole new “taxable income” bracket and we would have had to pay additional income taxes next year equal to half the amount of the loan!
So we put $5000 down and financed the rest on a 5 year loan. At this time we are doubling up on the monthly payments and, barring unforeseen circumstances, will have it paid off in 2 ½ years.
ellis
Instructor
New member
Mine's a little different.....2015 TE with Toytec/OME lift and Cooper ST Maxx's. 7500 miles and I was offered $34,000 trade, buying a 2016 Tundra $1000 below invoice ($4300 off msrp).
Blitzkrieg
New member
I'm still trying to figure out why the hell you would want to trade in a 2015 on a 2016.
Was the 2015 an impulse buy and now you want a TE/TRD/Limited instead?
Buying a car and trading it in a year later makes zero financial sense. Have you ever considered leasing? Do a 2 year lease and get a new vehicle every 2 years vs. this madness if you want a new vehicle that often.
Me? I shop carefully, take very good care of my vehicles and keep them at least 5 years and usually 10 or more if I like them. I have had 2 vehicles I traded in way early - 1 was a vehicle (non-Toyota) that I started having issues with right out of the gate and 2 recalls within as many months. Bye-bye POS, I'll take the hit right now instead of the headaches for the next 5 years.
There is a thing I call the depreciation curve. You take a huge hit before there are even 10 miles on the odo the minute you drive it off the lot. That curve goes down about the first 3 years where (on a vehicle like Toyotas which have excellent resale value) it starts to slow and become more slight slope linear.
Was the 2015 an impulse buy and now you want a TE/TRD/Limited instead?
Buying a car and trading it in a year later makes zero financial sense. Have you ever considered leasing? Do a 2 year lease and get a new vehicle every 2 years vs. this madness if you want a new vehicle that often.
Me? I shop carefully, take very good care of my vehicles and keep them at least 5 years and usually 10 or more if I like them. I have had 2 vehicles I traded in way early - 1 was a vehicle (non-Toyota) that I started having issues with right out of the gate and 2 recalls within as many months. Bye-bye POS, I'll take the hit right now instead of the headaches for the next 5 years.
There is a thing I call the depreciation curve. You take a huge hit before there are even 10 miles on the odo the minute you drive it off the lot. That curve goes down about the first 3 years where (on a vehicle like Toyotas which have excellent resale value) it starts to slow and become more slight slope linear.
