Truck Trading: Tips Please!

[BinaryData]

Hey Guys,

I currently own a 2009 Dodge Ram 1500 SLT. Since owning it, I've put on over 10k miles in just a few months. That's mostly highway miles, driving 60 - 70mph. Anyways, to the point!

I need to trade my truck in for something that has more hauling power. My family has increased it's animal ownership to a number I can't haul at one time. I'm currently driving 500+ miles every other Saturday to pick up the horses, and shuffle them around. My sisters boyfriend refuses to put the miles on his truck because it lowers his precious "value" of his truck. Sorry guys, but my truck ain't no pavement princess. My truck goes places it's meant too.

I've never traded in a truck, or owned one before my 1500. I have no idea what to expect, what to do, or what to look for. I'm looking for a Dodge Ram 3500, I was looking at about 100k - 150k miles. I know diesels can last forever if taken care of, my buddies 2012 3500 Ram (owned it since they came out), he's got close to 400k miles on his, and it still hauls like a beast. My goal is to keep my payments about the same, ~$400 / month. I currently have extended warranty on my truck, which transfers to any other vehicle of my choosing. I was thinking of driving out of state maybe, would much rather stay within a ~500 mile radius of where I live. Give or take.

Sorry if this is the wrong section, I wasn't sure what would be best suited, but since I own a 2009, I thought I'd start there.. I was hoping to wait till my score was higher, but at this rate, my damn wheels are going to fall off, or my engines going to blow up. Hauling anything isn't covered under the warranty, iirc. "normal wear and tear" isn't covered. =/

 

[Jstmahoney]

Is your 09 paid for? Yes I’d definitely get a 2500-3500 diesel. Id go for new if you can. I see a lot of stories on here of guys buying used trucks and having problems. You never know how someone abused a truck for 100k then traded it in. Just my .02


2017 RAM 1500 Laramie 4X4 Crew
from my iPhone using Tapatalk

 

[yillbs]

You can pick up a decent mileage ( 100-120k ) lone star / big horn / potential laramie for about 35k. Or.. you can get a brand new 2017 tradesman for 40k. you won't have options, but you'll have the best truck money can buy.

 

[22hemi13]

I always buy used. But I also always get gas engines. If and when I go to diesel I feel it’s worth it to get new. They’re AWESOME if they’ve been taken care of right. As far as trade. Get the kbb value. You’ll always get more if you private sell but can take longer. If you’re not upside down you can pay it off and that’ll help credit score some. Again if not upside down the dealer might make a good deal on a new truck. Best bet it to go kick some tires and talk to a few salesman. Dont be adfraid to walk away.

 

[BinaryData]

Well, I've been looking at dealerships here in town, and in my state. I've found a few but everyone wants a crap ton for a used truck. I get that it's a diesel, but 175k miles, and you're asking $40,000+ for the lowest option diesel. C'mon, even I know that's rigged.. I was aiming for 2009 and up, I've heard awful things about the 2008 and lower years, not sure how much is true or not.

Here's what I've found so far;

https://www.i-5dodge.net/inventory/...wheel-drive-crew-cab-pickup-3d7lx38c36g212149

https://www.dishmandodge.net/used/D...okane-WA-1b1751f10a0e0ae75ee5a1d77d5e236c.htm

As for new, I won't buy new. Not until I've cleared my student debts, and I've learned to not use my credit cards/pay them off sooner. I made the mistake of carrying a balance, and it's screwed me since that day.

I just did KBB on my truck, after I passed the 105k mile range, I dropped nearly 7k in value. I'll get about $9500 now, and my loan is still at ~$20k but that includes my extended 7 year warranty, which was about 3 - 5k extra. I'm going to try and refinance here shortly.

I've never traded in a vehicle, I don't know how the loan situation works, and things of that sort. I'm 29, and I feel like a dumb 16 year old, haha. Doh!

 

[yillbs]

Well, I've been looking at dealerships here in town, and in my state. I've found a few but everyone wants a crap ton for a used truck. I get that it's a diesel, but 175k miles, and you're asking $40,000+ for the lowest option diesel. C'mon, even I know that's rigged.. I was aiming for 2009 and up, I've heard awful things about the 2008 and lower years, not sure how much is true or not.

Here's what I've found so far;

https://www.i-5dodge.net/inventory/...wheel-drive-crew-cab-pickup-3d7lx38c36g212149

https://www.dishmandodge.net/used/D...okane-WA-1b1751f10a0e0ae75ee5a1d77d5e236c.htm

As for new, I won't buy new. Not until I've cleared my student debts, and I've learned to not use my credit cards/pay them off sooner. I made the mistake of carrying a balance, and it's screwed me since that day.

I just did KBB on my truck, after I passed the 105k mile range, I dropped nearly 7k in value. I'll get about $9500 now, and my loan is still at ~$20k but that includes my extended 7 year warranty, which was about 3 - 5k extra. I'm going to try and refinance here shortly.

I've never traded in a vehicle, I don't know how the loan situation works, and things of that sort. I'm 29, and I feel like a dumb 16 year old, haha. Doh!

You need to not trade it in then. you're going to be so upside down, you're just going to be in thie same situation in 5 years. You'll NEVER get it paid off without a large down payment. Even if you go used, you're going to get even more screwed.

I was recently in the marked for a used diesel, and spent weeks and weeks doing what you're trying to do ( though, I'd never go less than 2011 ), and was finding them for high dollars. Diesels hold there value. However; based on your situation, I would strongly suggest you wait it out and pay off more of your principle. Even if you got 10k for your truck, which, you likely won't, you'd have another 10k waiting for you on another loan.

 

[mtofell]

You're in a bad financial situation with your vehicle and about to make it worse. Are you hauling what you need to with the 1500 but it's just not up to the task? If so, forget a diesel and just get a gasser. Anything a 1500 can move will be night and day better with a 2500 gasser.

I haven't read the whole thread but I see numbers like 35K and 40K being thrown around. Someone who has 10K negative equity in a truck has no business spending that much on another truck.

Find a new-ish 2500/3500 gasser to move the horses and work on not being 10K in the hole on vehicles. You're working too hard and are just making the banks rich.

and... save some money right off the bat and sell private party as opposed to trading in. You should be able to sell private party for at least 5-10% higher than trade-in value pretty much instantly on CL or Autotrader. Dealer's expectation of profit on used vehicles is ludicrous.

 

[MADDOG]

Any balance not paid off on your trade-in gets rolled over into the new loan. So you'll be upside down on the diesel as well.

If the price of the diesel is inflated too much by reason of your old loan roll over, it will be difficult to find a financial institution that will write a loan for a vehicle that is worth a lot less than the loan value.

 

[Ratket]

I would upgrade the suspension on the 1500 to do what u need it to do.
Don’t even bother looking at a used truck that is 5 years old and that is priced over 25k. Due to the interest rates on used versus new. A 6 or 8 % loan on 30k will cost you more than a 0% or 2.9% on 40k. Given your financial situation I would wait. Also when looking for a new truck look at https://www.dennisdillonchryslerjeepdodge.com/

People want way way to much for their used diesels.

A gas 3/4 ton or 1 ton would suit you well to.
Again I think u should just upgrade what you have and ride it out.

 

[Chief_6.7]

The only realistic way this is gonna happen is if you buy new. That’s only because no finaince company is going to let you carry over $10K to a used vehicle. The way they are giving rebates you can easily get $10K-$15K off sticker for even a tradesman that might put you high 30s but then add on those 10K from your other your back at financing a high $40K truck and your payment is gonna be up there depending on loan interest rate and loan length terms.

If I were you I would stay put where I’m at and not trade in. If payment is not really an option and you plan on keeping the diesel for a very long time then trade it in but be ready for a $700-$800 payment.

 

[BinaryData]

You need to not trade it in then. you're going to be so upside down, you're just going to be in thie same situation in 5 years. You'll NEVER get it paid off without a large down payment. Even if you go used, you're going to get even more screwed.

I was recently in the marked for a used diesel, and spent weeks and weeks doing what you're trying to do ( though, I'd never go less than 2011 ), and was finding them for high dollars. Diesels hold there value. However; based on your situation, I would strongly suggest you wait it out and pay off more of your principle. Even if you got 10k for your truck, which, you likely won't, you'd have another 10k waiting for you on another loan.

You're in a bad financial situation with your vehicle and about to make it worse. Are you hauling what you need to with the 1500 but it's just not up to the task? If so, forget a diesel and just get a gasser. Anything a 1500 can move will be night and day better with a 2500 gasser.

I haven't read the whole thread but I see numbers like 35K and 40K being thrown around. Someone who has 10K negative equity in a truck has no business spending that much on another truck.

Find a new-ish 2500/3500 gasser to move the horses and work on not being 10K in the hole on vehicles. You're working too hard and are just making the banks rich.

and... save some money right off the bat and sell private party as opposed to trading in. You should be able to sell private party for at least 5-10% higher than trade-in value pretty much instantly on CL or Autotrader. Dealer's expectation of profit on used vehicles is ludicrous.

The only reason why I'm in a bad financial situation is school loans and I was in a car wreck back in November. I made a decision about this 1500, and I'm regretting it, majorly. I miss my little Ford Fusion. Gas isn't the problem, the problem was me being a bit of an idiot and taking this truck for 18.5k with ~95k miles on it.

Any balance not paid off on your trade-in gets rolled over into the new loan. So you'll be upside down on the diesel as well.

If the price of the diesel is inflated too much by reason of your old loan roll over, it will be difficult to find a financial institution that will write a loan for a vehicle that is worth a lot less than the loan value.

See, this is something I didn't know. I had been wondering about it because my colleague had a nice, pimped out GMC Diesel, traded it in for a 2018 Subaru WRX or STI, not sure which, but it was a pricey piece, he then traded that after about a month (didn't break 2k miles at all), and traded that for a new, 2019 GMC 2500 I think is what he got, unless they make a 3500 or w/e that's gas.

I would upgrade the suspension on the 1500 to do what u need it to do.
Don’t even bother looking at a used truck that is 5 years old and that is priced over 25k. Due to the interest rates on used versus new. A 6 or 8 % loan on 30k will cost you more than a 0% or 2.9% on 40k. Given your financial situation I would wait. Also when looking for a new truck look at https://www.dennisdillonchryslerjeepdodge.com/

People want way way to much for their used diesels.

A gas 3/4 ton or 1 ton would suit you well to.
Again I think u should just upgrade what you have and ride it out.

The only realistic way this is gonna happen is if you buy new. That’s only because no finaince company is going to let you carry over $10K to a used vehicle. The way they are giving rebates you can easily get $10K-$15K off sticker for even a tradesman that might put you high 30s but then add on those 10K from your other your back at financing a high $40K truck and your payment is gonna be up there depending on loan interest rate and loan length terms.

If I were you I would stay put where I’m at and not trade in. If payment is not really an option and you plan on keeping the diesel for a very long time then trade it in but be ready for a $700-$800 payment.

My school loans are based off my wages. Since I work 60 - 80 hours a week, my payments have gone from $200 to $900 / month for $20k in loans. Doesn't help the fact that I used my savings to help family out of a bad situation. Mom's car went kaput, and my brother got a DUI. Can't really tell mom no, when she's begging on her knees to borrow 5k. I was planning on putting about $10k down on the diesel, if my family holds true to their promise. So far they have, I've got about $1900 of the $15k i loaned.

What killed me on this loan was the fact that the extended warranty was so much. My total loan, without the warranty was about $20k, with the warranty it was $25k. I got the extended warranty because my colleague, the one who traded his GMC Diesel, told us that an entire bank of injectors went a day or two after he traded it. I have a really hard time talking to sales people, they can smell me. I'm an easy target.

So the jist of things is: Wait, Save Some $$, pay down my truck a bit more, and then go shopping. Not sure how well that'll go, every time I save money, some stupid crisis in my family happens. That $15k I lent, was a down payment on a house I had to back out of. Which sucks because it was about 75% close to my dream house. Anyways. Do we have a suggestion on buying tips? Things to look for, etc.. My brothers useless when it comes to newer trucks, so I can't rely upon him for help. My mom doesn't know squat about vehicles, even though she was married to a mechanic for 20 years (he died, sadly), and my sister almost got me into a worse situation with an older truck, and no warranty.

How much do you think I should pay down on it before I attempt to buy a new truck?

 

[yillbs]

Okay, so, rather than tell you it's a bad idea, I'll offer some advice, since you're likely going to do it anyways. i've put it nice and inline for you.

1. Go to at least two dealerships, and have them work up a trade for you. You don't need to buy. Once you initiate a trade appraisal these guys will likely talk you into some ****, you say you're an easy target, DONT BE. Those offers usually last for about 7 days. Once you have 2 or three in your hand, find the average and know waht you're likely to actually be getting for your trade in your market. KBB IS a GREAT source, but it's still just an estimate. Finding what they will pay costs you nothing. they will say things like it's ONLY for today, blah blah, ignore it. just get the appraisal.
2. Once you know you're likely going to get X dollars for your trade, you can begin. Try to do something within a week of knowing what you're trade's worth.
3. If you owe 10k (i'm using fake numbers, but the same principle applies ) and you're able to get 11k for your trade, then you'll be 9k upside down. Say your new truck is 25k. Plus TTL so 26.5k + 9k on your trade, bringing your total to 35.5k. The truck is going to be worth about 22k (check trucar and some others before you pick the one you want ). so you're already looking at a little devaluation ( though, much less than if it were new ). so you have a truck worth 22k and you're financing 35.5k. Let's say you have a semi decent credit score, so you're financing it for 48 months (older used car) with a 7.6% interest rate. That puts you at about 872/month. Dealers will tell you that for every 1000 down, you'll save about 20 dollars on your loan. Absolute crap, sometimes.
4. You need to go in smarter than them since they already have you on the hook with the equity. go to your bank / credit union and try to get pre-approved. In a situation like your's it's imperative.
5. Once you're pre-approved go find your truck, and start negotiating price. Remember! You already have the money, they don't need to know ANYTHING about anything right now. If you already had them look at your truck, leave it out, dont' even mention the trade in yet. If it's a new place, don't even TELL them about the trade in, just shop. Once you start negotiating the truck price, and you have one LOCKED IN. come up with a story like, well to help offset some of the debt i'm going to go ahead and trade in my truck.
6. At this point, they already agreed to a price on the truck, so they will likely try to low ball you on your trade. They can't, you already know what it's going for in your area, and they all were pretty much the same. If they hit that number within 300 dollars, make the deal ( if you negotiated well ). Don't let them run a credit app, because you already have financing, so they can't make up the difference on lying to you about the APR. do NOT tell them you're financing through your own credit union. Let them think you'll be financing with you. This will come in handy when they think they can **** you on the APR because they've been asking you " what do you want your monthly payments to be ".

This method should suit you well, this is a BEST case scenario for you being so upside down. If you MUST purchase now, you need to try to do what I've outlined. I promise you'll benefit from it. All that said, I'd suggest to put at least 20% down if you can, to help offset the overall debt. It won't be much, and obviously, if you CAN do 9k down, please, do it!

hope everything works out for you!

 

[Ratket]

Remember , if need be just walk away,

 

[averageguy]

I'm sure this will be very unpopular advice you won't like or use but here it is. Stop letting people take advantage of you and tell them to haul their own horses and pay there own bills. They figured out how to be in debt just like you so they can figure out how to pay their own bills just like you do. I've been through this, you work and have some money so could you help me out this one time because of some reason that is never their fault they are in a jam. And repeat. After that, keep the truck you have, take care of it and pay it off, then pay your student loans off. Once that happens, save a down payment and buy a nice new truck to reward YOURSELF for YOUR hard work. It may take a few years but it will happen. My .02 cents.

 

[14hemiexpress]

You can cash in the remaining balance on the warranty it will knock down the principle balance on your loan. But your in a bad spot I did a lot of trading around like that when I was younger and it's going to cost you 6k+ every time you do it. My best suggestion is keep the 1500 and save if your going to dig a deeper hole don't do it on something that's 10 years old. If you were to dig the deeper hole get something thats going to handle everything you need for the next 5-7 years and keep it

 

[bryan28]

Honestly sounds like you're not in a position to get another truck yet. I believe you could get a prorated refund on the unused portion of the extended warranty you purchased but you'd still be upside down. Best to pay down what you've got and save for a big down payment for the next one. Good luck. By the way, are you hauling your sisters boyfriends horse or letting him ride yours? If so, I would tell him to help out or get lost.

 

[adrianp89]

Have GAP? Would be a shame if somethi... NVM

 

[BTD07]

See, this is something I didn't know. I had been wondering about it because my colleague had a nice, pimped out GMC Diesel, traded it in for a 2018 Subaru WRX or STI, not sure which, but it was a pricey piece, he then traded that after about a month (didn't break 2k miles at all), and traded that for a new, 2019 GMC 2500 I think is what he got, unless they make a 3500 or w/e that's gas.

At the end of the day you dont know others financial situation. He could be so upside down on vehicles he will never see the light. We as normal people are obsessed with the latest and greatest, myself included. Dont let that influence you. It doesnt seem like you would be able to afford it and I would never buy a truck 12 years old. I try to always go up in year/features. Why go back? If you had a Ford Fusion before..wouldnt the truck be an upgrade? You can remove the warranty as far as I know, it would just be pro rated back to you. And if the payload is the issue I would spend the cash on upgrading it where you can. If you regretted the 2009 Ram I feel youd definitely regret a 2006..Just my opinion. What I do is always write out my monthly expenses and add in what I am looking to increase, in this case a vehicle/car payment, and compare its worth vs how it will affect my bottom dollar to live. Dont put yourself in a bad spot because you want to do something right away. I had a 2011 300, a 2015 R/T Charger and now a 2017 Laramie, but if I knew itd be hard to put food on the table and provide for my child by buying it, I would have walked away. Obviously this isnt what youd want to hear, we look for affirmation in these types of situations, but if you cant afford it, just accept that you made a bad choice (which I dont think its necessarily a bad one) and learn from it. I am 25 years old so I know how it feels to be young and making tough choices, but times move fast, and if you dont want to get ripped off you have to research and do your best to be smart in these big situations. Thats life. Good luck to you.

 

[zrfraser]

Listening to your story you are in no shape to be financing a truck. These trucks can handle the miles as long as they are taken care of, I drive a minimum of 750 miles a week in mine; probably closer to 900. If the horses are causing to much of a burden then it might be time to sell some horses. If they are your sisters horses, tell her to take care of them. From reading your story, it sounds to me you just want a newer truck. Nothing wrong with that, but you are going to lose your ass on financing, and be even more upside down than you are currently. If you are trying to save for a house, continue to do that and put off the truck as long as possible. Its a unpopular opinion but if animals are causing me to go into debt and making it so I'm not enjoying my life, then the animals are going. Good luck.

 

[Fitz-0518]

Agree with all that suggest, wrong time, no leverage, upside down transaction. Read Chief 6.7 three times. NEVER trade in. When the time is right "financially" consider CarMax. Cost you nothing to get an offer to purchase. They were 1-2k higher than my best offer on the last two trucks I sold.