Author Topic: Sell a paid off 2012 Toyota 4Runner?  (Read 4536 times)

fiveoclockshadowstache

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Sell a paid off 2012 Toyota 4Runner?
« on: June 07, 2015, 11:11:10 AM »
I need some thoughts from the Mustachian world. My background is- I'm 27 years old, and relatively new to the Mustachian world. 2 years maarried, no consumer debt of any sort. Only previous debt was a car loan on a 2012 4runner I bought before being at all familiar with Mustachian ways of life. I have since paid it off and now own it free and clear. Is in good to great condition (minor scratches) and has about 60k miles on it. CarMax offered me $25k for it, was hoping for closer to $28k. Second vehicle is a 2005 Honda Accord (160k miles) that runs very well. We live in the midwest where winters can require a 4wd vehicle from time to time. I know the truest Mustachian thing to do would be to sell it and downsize to a much more fuel efficient set of wheels, but I'm struggling getting over that hump. I've already eaten the majority of the depreciation- and just can't seem to pull the trigger.

Some other relevant life notes. Wife's sister and brother just moved to Boulder. About a 9 hour drive, which we plan on making frequently with friends and our dog. Other immediate financial goal is to get to the 80% threshold on our house to get rid of PMI. Currently at 88.5%.

Also- if car was sold, would need to backfill with a second set of wheels. Ideally a wagon of some sort. Best case scenario- sell the car for $28k, put $15k towards the mortgage, and still have $13k for another vehicle. PMI would be knocked out, fuel efficiency would be better, plus the added environmental and consumer benefits.

Any solid math saying its worth eating the sunk loss I've already incurred and any ways to get me over the emotional attachment to the car- would be welcome!

Any and all thoughts welcome!

SP

The Beacon

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Re: Sell a paid off 2012 Toyota 4Runner?
« Reply #1 on: June 07, 2015, 04:13:11 PM »
I'd sell it and buy a Honda Fit or something like that. For 13k,  you could get a very nice Honda Fit. As for the depreciation hump, it is just psychological. You'd come out ahead mathematically and financially if you sell it.

If you put that 15k in an index fund, it would grow to 200k+ in 35 years at 8%.  On top of this,  you would save on gas by quite a bit. Invest that money and you will get more than 200K mentioned above. I hope this gets you over that hump.


 

Bob W

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Re: Sell a paid off 2012 Toyota 4Runner?
« Reply #2 on: June 07, 2015, 05:23:19 PM »
Sell it to an individual at the highest market price.  Then buy you an 06 Camry with 140k for 6 k.    That should leave you 19k cash to invest.   Might as well sell the house too.   That beast of a car is costing you $250 a month in depreciation alone.    I'm guessing your house is a similar irrational, too big for you deal as well.   

fiveoclockshadowstache

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Re: Sell a paid off 2012 Toyota 4Runner?
« Reply #3 on: June 08, 2015, 04:27:46 PM »
Appreciate the thoughts. Good enough to get the ball rolling. Hadn't really quantified it in terms of deprecation on the asset. Or opportunity cost of investing for that matter.

Thanks
Sam

Erica/NWEdible

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Re: Sell a paid off 2012 Toyota 4Runner?
« Reply #4 on: June 08, 2015, 04:46:04 PM »
You could always join me a body style back. ;) My 03 - the only vehicle I've ever loved - was totaled out and I replaced it with an 07. I prefer the 03-09 body styling more than the current body style. Plus the torque. Oh, that sweet, sweet low end torque. I mean, sure it's facepunch worthy, but I love my g-ddamed 4Runner.

Don't listen to me. Sell the thing. Pay down your mortgage. It's a clown car. Get out now - you'll end up ahead.

JLee

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Re: Sell a paid off 2012 Toyota 4Runner?
« Reply #5 on: June 09, 2015, 10:01:22 AM »
You could always join me a body style back. ;) My 03 - the only vehicle I've ever loved - was totaled out and I replaced it with an 07. I prefer the 03-09 body styling more than the current body style. Plus the torque. Oh, that sweet, sweet low end torque. I mean, sure it's facepunch worthy, but I love my g-ddamed 4Runner.

Don't listen to me. Sell the thing. Pay down your mortgage. It's a clown car. Get out now - you'll end up ahead.

lol I have an '07 GX470 and I know that feeling. Facepunch worthy, yup...but it's offroad-capable (I'm half a day's drive from Baja, Mexico) and so nice to drive...

frugaliknowit

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Re: Sell a paid off 2012 Toyota 4Runner?
« Reply #6 on: June 09, 2015, 10:09:48 AM »
"We live in the midwest where winters can require a 4wd vehicle from time to time".

Not.

Sell it.  Use snow tires if you need traction.

fiveoclockshadowstache

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Re: Sell a paid off 2012 Toyota 4Runner?
« Reply #7 on: June 10, 2015, 06:48:09 AM »
Sell it to an individual at the highest market price.  Then buy you an 06 Camry with 140k for 6 k.    That should leave you 19k cash to invest.   Might as well sell the house too.   That beast of a car is costing you $250 a month in depreciation alone.    I'm guessing your house is a similar irrational, too big for you deal as well.

House is actually well bought, well within means, good value appreciation, opportunities for sweat equity. Love the idea of an 06 Camry. I'd buy another 06 Accord exactly like the one I've got. Thing runs like dream.

fiveoclockshadowstache

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Re: Sell a paid off 2012 Toyota 4Runner?
« Reply #8 on: June 10, 2015, 06:49:14 AM »
"We live in the midwest where winters can require a 4wd vehicle from time to time".

Not.

Sell it.  Use snow tires if you need traction.

Yeah- probably right. Its been handy in two blizzards the last 3 years. Not exactly the most logical....

expectopatronum

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Re: Sell a paid off 2012 Toyota 4Runner?
« Reply #9 on: June 10, 2015, 08:38:48 AM »
Do you absolutely need 2 cars? Just curious.

Sell it. The emotional attachment is hard, but think long-term, not immediate gratification.

Something I've liked lately is the act of "thanking" an object for its time in your life before you part with it (look up The Life Changing Magic of Tidying Up on google and read a news article on it). She also emphasizes how people keep poor purchases as some way of...trying to make it worth it? Don't think of it like, "But it was a dumb purchase, and I already ate most the cost..." Yes, there's a lot of sunk cost already, and it's only going to keep burning MORE money in gas, depreciation, opportunity cost the longer you hang onto it.

That's like going into a casino and blowing through $4K of $5K that you have. Oh well, already lost most of it, so what's the harm in going on... NO! Your past loss/choices are totally separate than the present.