Hello Mustachians! I’ve discovered MMM about a month ago, and am trying to correct my lifestyle and spending choices over the last decade.

I wrote a thread yesterday looking for advice

http://forum.mrmoneymustache.com/ask-a-mustachian/advice-on-getting-started-paying-off-the-catheter-and-bedpan/ on where to start with paying off debts vs investing and many suggested that I sell my 2015 Tacoma. I was convinced this was a good idea, so I did the next logical thing: research and math.

I was surprised to find that the numbers show that I should keep the truck. Let me elaborate.

My assumptions:

1.My employer pays all my gas costs, including for personal use. So gas economy is not a financial factor (for the purposes of this exercise I’m not considering the environmental cost)

2.My truck is a 2015 Tacoma with 40k miles. Trade-in for KBB/NADA is about $24,000. I owe $29,000. My payment is $575 and interest rate is around 2%.

3.My target car is a 2007 to 2009 Camry, which I should be able to pick up for $6500-$7500 with 100-150k miles. Acquisition cost would be about $12,000: $7000 for the car and $5000 for payoff.

**Option 1, Used Camry:** If I get a loan at 2.5% at 48 months to pay for the Camry and pay off the difference for the Tacoma, my payment would be about $263/month. Liability insurance would be about $40/month (guessing. Haven't gotten a quote), and repairs would run about $145/mo (numbers based off of yourmechanic.com's average cost of repairs). The total cost of these items after 4 years would be $21,624 after which the car would be worth about $5000. So the total cost of car ownership over 4 years would be $16,624 if I sold the car at that time.

**Option 2, Keep the Tacoma: **The Tacoma's payment is $575. Repairs, based on the same site, would come to an average of $42/month during those 4 years. Insurance is about $80/mo. Following these numbers, the total cost after 4 years would be $33,520, after which the Tacoma would be worth $15,820 (based off of the current 7 year old model trade-in value at 80k miles). So the total cost of car ownership over 4 years would be $15,820 if I sold the truck at that time.

If these numbers are right, I’m looking at a higher cost of about $800 for the Camry over those 4 years. This is surprising, but, if correct, highlights that the biggest sunk costs are in the first year and a half of ownership of a new car, and that I've already realized those costs, and they can't be recovered.

At this point, I’m leaning towards keeping the Tacoma for a few more years, at which point I'd need to reassess, as the monthly costs will change in a big way. Am I missing anything?

Spreadsheet:

https://docs.google.com/spreadsheets/d/1gammxP5wb8nMbUXQGYDEycj8gmpWrHZbOcK1msOqlgw/edit?usp=sharingAverage maintenance cost article:

https://www.yourmechanic.com/article/the-most-and-least-expensive-cars-to-maintain-by-maddy-martin