Author Topic: Auto downgrade or stay put?  (Read 386 times)

BCC

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Auto downgrade or stay put?
« on: May 07, 2019, 03:57:17 PM »
New here... bare with me. This post is a little two-fold.

Opinion question:
I have a 2011 Tacoma, 100k miles, v6, 4x4
Originally financed (stupidly... making 45k a year) for 22k because I was getting into welding as a side job outside of my 9to5.
This was in a different state.

Current situation:
I work remote from home in Portland, Maine making 78k (4k yearly bonus but not promised)
Not welding because I'm in an apartment with no storage
Truck has been paid off for the past 2 years
I have no debt so I don't need the money to payoff anything
I definitely could drive less than I do now (consolidate errands)

Reason for keeping:
It's already paid off
2011 and 100k, still have plenty of life
Short term goal is to own a multi unit so truck might be useful (that's what they say anyways)

Reason for selling:
I could still sell this truck for about 16k privately and get into a 2004 Forester (or similar) for 4-5k
This 10k chunk of money could make that multi-unit purchase sooner/easier (comfort)
I miss my old Wagon... No bed space but being able to carry passengers or items with seats folded down is quite nice
Save some gas... I do a once a month drive down to the office which is 300 miles per trip and I also enjoy going to the mountains to ski (alpine tour)

Other Personal Info:
31 years old
78k salary working from home
Roughly 40k in 401k/Roth investments
No other investments
25k in savings (Which I consider 10k to be 'emergency')
Without getting into expenses, I'm able to save about 1k bi-weekly (I know there is probably room for more)

Much appreciated. Like I said, first post so let me know if more information and what information is typically good to include.

WSUCoug1994

  • Bristles
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Re: Auto downgrade or stay put?
« Reply #1 on: May 07, 2019, 04:15:17 PM »
If I could pull $10K out of a depreciating asset I would.  Trucks do tend to hold their value better than cars but if you can get what you need functionally out of a downgrade I would do it.  Cheaper to own, cheaper to maintain, cheaper to insure in most cases.

GreenEggs

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Re: Auto downgrade or stay put?
« Reply #2 on: May 07, 2019, 09:12:55 PM »
I know a lot of people like their Subarus, but we bought a lemon.  We won't buy another Subaru.


I see the lure of recouping the price difference, but you're swapping a 2011 Toyota truck for a 2004 Subaru.  That's 7 years older & a lot less valuable class of vehicle.  (Btw, I had a buddy sell his 4x4 4 door Tecoma w/ 300K miles for $10,000!!  Can you believe that?)


How much longer will the 2004 Subaru last?  Who knows?  You're almost better off buying a $2500 car than a $4-5K car, because it (the 4-5K) will probably need repairs sooner than later anyway.


And what about when you get back into welding or rentals?  Trucks are handy. 

researcher1

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Re: Auto downgrade or stay put?
« Reply #3 on: May 08, 2019, 09:00:56 AM »
I have a 2011 Tacoma, 100k miles, v6, 4x4

I could still sell this truck for about 16k privately and get into a 2004 Forester (or similar) for 4-5k

Getting rid of the truck makes no sense.

You aren't truly netting $10K, because you end up with a vehicle that is 7 years older and ~90,000 more miles!

If you get rid of vehicles after they reach 200K miles, then the Subaru only has 1 more year left, compared to 8 more years for the Tacoma.