Author Topic: Should I sell my 2013 Toyota Highlander  (Read 6394 times)

nepluv

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Should I sell my 2013 Toyota Highlander
« on: April 22, 2016, 06:53:08 PM »
Hello all,

I recently stumbled on the Mustachian forum :) .

I bought a new Toyota highlander back in 2013 for 39K (10 K down and rest financed at 0 % APR). Being new to the US and having never owned a car I was too scared of used car and repairs if needed down the road. I could rationalize non stop but it definitely wasn't a good move.

We are saving for downpayment of a house and hence the reason I am trying to find all ways to save money and live a frugal lifestyle from now on. I wanted to know  if it would be a good move to sell the car and buy a used car.
Here are the details :
Currently the car has 11K miles on it  and it's kbb trade in value is 29K. So it is a minimum of 10K hit in almost 3 years.
remaining loan on the car - $12,826 at zero percent APR. Our monthly payments are $500 for the car.  We are currently saving around 4k/month after paying all bills.
We have another car that is paid off ( bought 9 months ago-2016 Subaru outback )
I only have one kid- 18 months old and the second one is at least  1 or two years away ..lol
When I bought the highlander it was mainly for it's aesthetics(distant distant outward resemblance to land cruiser..lol) rather than functionality as we have only used it once to its full capacity of 7 passengers.
My current dilemma is should I still keep the car( It has low mileage and hasn't given any problems but as you can tell I don't drive it that much-11K in 3 years) or sell it and buy a car for  10-12K like honda fit/ civic/ corolla from carmax or from craigslist.
 
Since we have two cars, we almost always use the outback as it gives better mileage and easier to drive than highlander( it has almost 6K miles in 9 months). I only drive highlander when I am alone or to drop or pick the baby from day care.

Do you think it will be a good idea to buy a used honda fit/ civic or a Prius( might be more expensive)

Please enlighten me.


bobechs

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Re: Should I sell my 2013 Toyota Highlander
« Reply #1 on: April 22, 2016, 06:59:13 PM »
Yes.

Sell it to me.  For a hundred bux.

You can have my bike, too.  It's a nice bike; you'll like it.

alsoknownasDean

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Re: Should I sell my 2013 Toyota Highlander
« Reply #2 on: April 22, 2016, 07:49:21 PM »
You bet you should.

Sell it, pay the loan off, and buy a fantastic smaller used car with (half of) the remaining cash. No point owning such a huge obnoxious vehicle if you don't need its capabilities.

Pick up a tidy five year old Corolla or Civic or similar, and enjoy the $400/month extra in your pocket (and the fuel savings from improved MPG).

No brainer.

MrsTuxedocat

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Re: Should I sell my 2013 Toyota Highlander
« Reply #3 on: April 23, 2016, 12:15:12 AM »
You should definitely sell your car. Can you and your wife share one vehicle? I think that would be the best option.

I used to have a Civic and Mr. TuxedoCat had a Fit. We decided that the Fit the more practical car and sold my civic. The Civic had better handling and was more fun to drive. I think you should go with Fit especially because you have kids.

MsPeacock

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Re: Should I sell my 2013 Toyota Highlander
« Reply #4 on: April 23, 2016, 05:29:18 AM »
Yes. I had nearly the exact same situation with a 2013 highlander hybrid and am so happy to be rid of it and rid of the car payment. Sell it!

soupcxan

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Re: Should I sell my 2013 Toyota Highlander
« Reply #5 on: April 23, 2016, 08:57:57 AM »
The first three years are the steepest part of the depreciation curve - that value is already gone. Now you are looking at ~$1,500/yr depreciation going forward. If you like the car, keep it for another 10 years and the incremental cost is not very much. It's reliable and you know the history on it and there's plenty of room for a second kid. The only Honda you are going to get for $10k is going to be +5 years older and have way more miles on it, so higher ongoing maintenance expenses.

If you just don't like the Highlander, then trade it in for something smaller. Personally, I could not fit in a Civic with two rear-facing car seats in it, so you may want to check that first.

csprof

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Re: Should I sell my 2013 Toyota Highlander
« Reply #6 on: April 23, 2016, 09:44:57 AM »
The first three years are the steepest part of the depreciation curve - that value is already gone. Now you are looking at ~$1,500/yr depreciation going forward. If you like the car, keep it for another 10 years and the incremental cost is not very much. It's reliable and you know the history on it and there's plenty of room for a second kid. The only Honda you are going to get for $10k is going to be +5 years older and have way more miles on it, so higher ongoing maintenance expenses.

If you just don't like the Highlander, then trade it in for something smaller. Personally, I could not fit in a Civic with two rear-facing car seats in it, so you may want to check that first.

Wait a second - no way.  It's got horrible gas mileage and represents a horrible use of an extra ~$15-20k of capital that could otherwise be producing money.  Viewed differently:  Selling it for $29k and buying a $10k used Honda produces about $750/year SWR on the invested $19k that could be used to cover any differences in expenses -- and the gas difference alone will probably make up for it.  11k miles ~= 3600 miles/year.  At 22mpg combined, that's $351/year ($2.11 avg us price / gallon) in gas, which would be cut by about $125/year moving to a 35-40mpg car.

OP - if you're expecting two, check whether the outback will be comfy with two car seats or not (my tiny Focus is not, alas, though it handles one).  In another thread, someone suggested the Ford c-max hybrid, which I haven't looked into yet.  The Outback may do just fine, in which case your small car idea sounds good.

(Or downsize to one car for a while.  We did this recently and it's been wonderful.  We probably spend an extra $200/year on Uber because of it, but that's far less than what the 2nd car cost us.)

tobitonic

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Re: Should I sell my 2013 Toyota Highlander
« Reply #7 on: April 23, 2016, 06:29:57 PM »
Side note: you can fit 3 car seats in Civics, Fits, and Priuses; the trick is to use narrow seats instead of the fatties.

MoneyCat

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Re: Should I sell my 2013 Toyota Highlander
« Reply #8 on: April 23, 2016, 07:16:22 PM »
Yeah, you should trade it in, since you already made a down payment large enough that you aren't upside down on the loan. My wife has a Ford C-Max Energi Plug-In Hybrid, which is a really nice hatchback with lots of cargo space and head room. You may want to look into that. It also charges with electricity to provide an all-electric range of 21 miles on top of the gasoline range. We charge with our home's solar panels, so she ends up getting around 200 mpg. Not too shabby. Saves her quite a bit of money.

nepluv

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Re: Should I sell my 2013 Toyota Highlander
« Reply #9 on: April 26, 2016, 07:11:49 AM »
Thanks everyone for all the suggestions. We are trying to figure out if we can limit ourselves to just one car ( the ideal situation) if not will go for one of the hybrid's recommended here. Thanks for making the decision process easier !

NoStacheOhio

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Re: Should I sell my 2013 Toyota Highlander
« Reply #10 on: April 26, 2016, 07:23:51 AM »
Thanks everyone for all the suggestions. We are trying to figure out if we can limit ourselves to just one car ( the ideal situation) if not will go for one of the hybrid's recommended here. Thanks for making the decision process easier !

If you aren't driving much, the added cost/complexity of a hybrid may not be worth it to you.

Alternately, the MMM-favorite Nissan Leaf may be a viable option if you just need something for short trips.

nepluv

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Re: Should I sell my 2013 Toyota Highlander
« Reply #11 on: April 27, 2016, 09:27:56 AM »
Thanks everyone for all the suggestions. We are trying to figure out if we can limit ourselves to just one car ( the ideal situation) if not will go for one of the hybrid's recommended here. Thanks for making the decision process easier !

If you aren't driving much, the added cost/complexity of a hybrid may not be worth it to you.

Alternately, the MMM-favorite Nissan Leaf may be a viable option if you just need something for short trips.
Thanks for that hybrid vs electric perspective. My trips are really short . Max 20 miles round trip/day. I was checking out informedforlife.org and was really scared of all the ratings for some of the more affordable cars.