Just bought a new car, but should i sell it?

[erichenberger]

This is my first post, so if I fail to meet any of the forum's etiquette please let me know.   Before I get into anything, here are the questions I'm asking of you:

1. Should I stay with the F150 and plan to keep it for 10-15+ years?  When it's paid off I allocate the money I spent on the car note toward college savings and some toward a down payment on a future vehicle?
2. Should I sell it now and buy the 4Runner?
3. Should I keep the truck until I am able to get positive equity and then sell if for a cheaper used vehicle?

I am 34 years old paramedic who is married and I have two kids.  One is 14 years old, and the other is 16 months old (big difference, I know!).  The oldest will be starting college in just 4 years, so I would really like to start saving more money for her college. 

 I bought a 2016 F-150 in July 2016 for $33,000.00, interest rate is 1.9% and the term is 72 months.  To date, I owe $29,714.00 on it, and I've checked a few dealerships and CarMax and the highest trade-in value I've been offered is $26,500.00.  Private party value is $29,300. A snapshot of my financial situation is as follows:

Debt: $29,714 for the truck, $108,137 for my house: TOTAL $138,451 - I have no other debt.

Available money:  908.88 mad money, 2,400 checking account for bills, 2,937 for vacation, 5,825 savings for college, 27,010 savings account. TOTAL $39,120

Retirement: $118,378.00 in a private 457 account, and $63,644 in my work account which will be matched at 200% when I retire.  TOTAL $182,022

HSA Account (money dedicated to medical expenses):  $22,760.00

Lately, I've become a follower of Dave Ramsey and now MMM.  I wonder if I could make better use of my money (towards kiddos college) if I sold the F150 and bought something considerably cheaper, specifically a 2000 Toyota 4Runner 4x4 with 150,000 miles with a sales price of $4,500.00. Based on the trade in value of my truck, I look to be about $2,500.00 in negative equity.  If I can get asking price for a private party sale then I might break even.  With all the being said....

1. Should I stay with the F150 and plan to keep it for 1-15+ years?
2. Should I sell it now and buy the 4Runner?
3. Should I keep the truck until I am able to get positive equity and then sell if for a cheaper used vehicle?

Thanks everyone, I don't know if I presented too much information, but I figure that I would get more pertinent answers with it.  I'm looking forward to everyone's responses!

[Hargrove]

First off, welcome. You're doing really well with a family at 34, as far as savings.

Unfortunately, you've gone and bought yourself a turbo-charged racing farm truck.

Take a 3k loss for selling it if you can. Not paying that thing's gas bill will get you the money back in about a year. You got a good loan on it, so you have the best of that bad situation, but almost no one needs an F-150.

You won't like that the next step is to not at all get a 4-Runner.

I don't like hatchbacks myself... I have a subcompact for the money-saving... but if you need space for family, a little hatchback would save you the loss against the F-150 in a year's gas bill, and it would cost about a quarter of the price bought used. Admitting you lost 3k is much more sound than spending tens of thousands (hundreds?) over the life of a monstrous, inefficient, gas-guzzler. That's a Loss Aversion bias.

[Syonyk]

Why did you buy the truck, how often do you use it as a truck, and does the capability difference between your truck and a cheaper vehicle matter to you?

I note you're a paramedic, and perhaps in a rural area, which would imply a need for a 4WD response vehicle?  Unless you just take the ambulance everywhere (I have no idea the details of your job).

As much as I like trucks (I live in a rural area, have a truck, use it as a truck regularly, and would get a Fit entirely bogged down on my property most of the year), I don't see your finances being in a position to justify that particular truck.

Personally, I'd detail it, list it, accept that you're underwater and probably will sell at a loss, and buy something radically cheaper.  Either the 4Runner you list, or a significantly older truck if you need that particular capability.

[Syonyk]

Unfortunately, you've gone and bought yourself a turbo-charged racing farm truck.

Seriously.  I got an Ecoboost as a rental (I rent cars... often) and I'm rather ashamed of the gas mileage I got with it.  To be fair, I was whomping on it pretty hard.  It's hysterically fun compared to my truck (old Ford diesel that I use when I need a truck)... but I wouldn't want to own one.

You won't like that the next step is to not at all get a 4-Runner.

As I noted, it depends on why he's got a truck.  I have a large 4WD truck, and this winter, if I worked not-at-home, I would have been driving it a good bit as it was the only vehicle that could get out of my driveway, even after plowing with a tractor.  The paramedic thing may mean that he needs 4WD to get out and around.  A Fit with snow tires will get through a lot, but ground clearance is ground clearance, and a Fit with snow tires, in a foot and a half of snow, still won't go anywhere.

[Hargrove]

Sure, if it's an on-call work vehicle. Ford Ranger 4 cyl is 24 mpg.

[smacpa]

I would sell the truck.  Removed 29k debt from the equation and you get from point A to point B for much cheaper in the 4runner.

I am also a Dave guy that found MMM.  We have paid for used vehicles.  I have not converted to hybrids as MMM followers tend to bc we like SUVs even though I recognize they cost more in gas etc.

[Syonyk]

Sure, if it's an on-call work vehicle. Ford Ranger 4 cyl is 24 mpg.

To be fair, that's right about what the 2016 F150 gets (if you've got the EcoBoost motor and keep your foot out of it).

Ford's done a damned nice job with the turbocharged 6 in the F150.  Just, it's absurdly sensitive to driving style.

[Hargrove]

Wow. That's interesting. It is 22-23 mpg. Still, a 2011 Ranger used is 8-10k... from a dealer... with around 70k miles. And you don't have to avoid letting your kids drive it.

You could get a very cheap one at the mileage on that 4-Runner, but if it's a paramedic response vehicle, high mileage is worth weighing.

I have to drive for work, and I put on a lot of miles. Lives don't depend on my car, but I'd still be concerned about the first "thing going wrong" so close to 200k in my "car must always work" scenario.

[Syonyk]

Wow. That's interesting. It is 22-23 mpg.

As I said.  Ford has done some damned nice work on the Ecoboost series.

And you don't have to avoid letting your kids drive it.

I... spent a while trying to get a 2016 F150 to misbehave.  If you keep the traction control and other gizmos on, it really does behave remarkably well for a 400hp truck with a light bed (aluminium and all).

It scoots up a tight, twisting mountain road far better than any truck has a right to do.  And then goes down the unpaved, rutted, dirt backside superbly.

<.<  Didn't mention that when I returned it.  Tank was full, nobody had to know.

They're a stupidly good truck, it just depends, entirely, on how much one needs that capability.

[erichenberger]

I wouldn't use my personal vehicle for response, and I use the truck as a truck once or twice a week.  I mainly got it because it's one of the few vehicles where I can be completely comfortable and have a rear-facing car seat behind me.  Plus, we have a 5,000lb travel trailer but we can also tow that with the suburban.   i really love the truck, but i like financial independence a little more, plus the savings for college...

I was able to find a Subaru outback with 67,000 miles on it for $14,000.00.  I think the fuel consumption on that vehicle is 21cty and 30hwy.  Would that make more bargain than the 4runner?

[Hargrove]

If you like the FI more, you've come to the right place!

A 2013 2.5 Subaru Outback Wagon has a low-end KBB of 14.3k with 62k miles. So 14k is probably not the best deal on that car at 67k miles, but it's a big step in a better direction from the truck. The 4-Runner has a much lower opening bid, and both are reliable and a savings on the new truck. Without needing it for your paramedic duty though, you probably don't need so much car. You seem set on a minimum there, though - at least you'll pocket a big difference from the truck.

[ShoulderThingThatGoesUp]

Ok, so you want to compare on rear legroom. How tall are you?

[Linea_Norway]

Ok, so you want to compare on rear legroom. How tall are you?

The Subaru Outback (2010 model) has very good legroom, also in the back seats. We have one and it has the best legroom of many cars that I know.
It also has very comfortable chairs.

[chasesfish]

Unload the truck immediately and pay the difference.  That purchase is insane for anyone who still needs to work and isn't independently wealthy.

The replacement car is entirely up to you, just spend less than half of what you just did and get better mileage.

[NoStacheOhio]

I wouldn't use my personal vehicle for response, and I use the truck as a truck once or twice a week.  I mainly got it because it's one of the few vehicles where I can be completely comfortable and have a rear-facing car seat behind me.  Plus, we have a 5,000lb travel trailer but we can also tow that with the suburban.   i really love the truck, but i like financial independence a little more, plus the savings for college...

I was able to find a Subaru outback with 67,000 miles on it for $14,000.00.  I think the fuel consumption on that vehicle is 21cty and 30hwy.  Would that make more bargain than the 4runner?

If you have a Suburban, you probably don't also need a 4Runner. Subarus are pretty solid, but you probably don't need AWD. How about a nice Camcord?