is this a good deal?

local dealer has a 2016 4Runner super white XP Gunner package with the black 20" wheels, 3rd row seats, 4x4 with 95k miles, they're asking $32k, the vehicle looks super clean and well taken care of, no accidents, regular maintenance. I'm upside down on my current loan and they're offering me a total payoff amount for trade, im sure after taxes extended warranty and fees and fees of fees it will be around $38k.

forgot to mention, my current vehicle needs about $4k in repairs.

 

No.

 

Bad at $32k then tack on more for your old vehicle? Hell no.

Think you should look at downsizing.

 

Interesting take, your thorough and well detailed explanation really provided a ton of insight.

OP I think only you can answer this. Blue booking your exact model and researching comparable prices on similar vehicles will be the determining factor if this is a deal or not.

As far as being upside down on your current loan, again only you can decide that. Nobody here knows your current vehicle, its condition, current and future interest rates, etc.

Honestly the only way any of us could accurately weigh in is if you presented the numbers, facts and figures for both vehicles with extreme detail.

 

They’re not adding anything from the old vehicle, they’re just buying it off for what is left on that loan. I’ve seen very few under $30k but not in my area which means traveling to get it, possibly saving a lot but uncertain if they’d take my old one with the amount of work needed.

 

Thank you for taking the time to respond.

actual numbers would be:
current vehicle 2010 Volvo XC60, needs steering rack, AC compressor, some sensors, oil pan, cracked windshield. Have $5k left on loan, dealer actually offering $7k for it.
4Runner is $32k before taxes and fees and any extender warranty.
There are a few under 30k with similar mileage out there but would involve traveling to get it and the possibility of not getting as much trade for the old one.

 

Being upside down on a loan already puts you in a bad spot. I'm assuming you don't have cash sitting around or you wouldn't be upside down. I could be entirely incorrect and just want to keep cash and put everything on the loan.

$32k is already on the higher side according to KBB. But I'm not sure how you are getting $38k if dealer is offering you $7k when you owe $5. Wouldn't that $32k go down to $30k if you apply it to the 4R?

I take back my no earlier. Personally if dealer is going to get you out of your Volvo, that obviously sounds like it needs some major work, I would consider it. As long as you can swallow what I am assuming is a higher monthly.

 

The rest would be taxes at almost $1,800, “document fee” $900, there’s some other fees adding an additional $400 and 3 years warranty and gap insurance combined an additional $4,500. Is what they’re quoting.

 

Is there a Fee Fee? $900 of profit "doc" fee is bullshit.

 

I agree.

 

Thanks.

 

You win, I chuckled.

 

The paperwork dude gotta get paid somehow.

Though it takes him like 30 minutes.

 

Perhaps I missed it, but are you going to finance the full amount of the 4R of, lets just say $38k? I didnt notice where you said you were putting anything down on the 4R?

 

was going to put $1,500 down but that won't make a dent in the monthly so may just keep it and finance it in full. the main reason I am contemplating this one is to avoid the extensive repairs of the old one and getting out of that loan since they're offering that much trade, most other places I've checked they're only offering $1k-4k for my clunker.

 

More times than not, dealers who advertise or offer "top dollar" for your trade, in your case $7k, have increased the selling price of the vehicle they're selling by the amount over KBB the trade is really worth. They have to make it back somewhere.

 

I understand, they have to make their profit somehow and now more than ever they are inflating their prices so much is ridiculous specially with the new vehicles and their markups.

 

I don't think its a good deal, but if you do it then GAP is definitely needed. If it were me I know I wouldn't be buying a car during with these rates and I have perfect credit.

 

Well at least they didn't ask him to pay "Market adjustment" fee... or maybe that's already occultly included on the price, but they just didn't mention it.

 

Here's my thoughts, not a pro but I stalk the car market (Germans, 4Runners, BAT etc), know cars decently well and am an accountant so know the #'s pretty well also.

*The Volvo sounds like it needs to go bye-bye. Dumping $4k in repairs into a $5-7k car is not a great situation.
*The 4Runner you mentioned sounds overpriced by at least a few grand. The market has softened 5-10%, in my opinion, over the past 30 days. If you can drive the Volvo, you have a little time to hunt for the right deal.
*Not familiar with the "XP Gunner" package. Inconsequential. FYI if you ever get into off roading, you will not want 20" wheels, just a heads up.
*Interest rates are going up, most banks have raised them recently as a result of the Fed raising them Wednesday. You very likely have a month or two before a bank will adjust them again. That said, they are not foreseen to go down anytime soon. If you need a car, you need a car. If you have a credit union or have access to one, they will have the best rates.

So, here are some thoughts to help:

*Reach out to Vroom, Carvana, Carmax etc and see what you can get for your Volvo. I just shopped my S8 for fun within the past three weeks, and the offers varied by $12k, sometimes you will be surprised.
*For the 4runner, keep hunting. Open up your options as far as trims, colors etc.. Again, that one you mentioned sounds overpriced. Not sure where you reside, but there are better deals even here in SoCal.
*Some car sites to hunt for cars in case you were not aware: cars.com, autotrader.com, craiglist, offerup

In your situation, don't be too upset or take anyone too seriously if they give you flack about rolling potential negative equity (Volvo), if it gets to that, into a newer car, or possibly upgrading too much. If you can afford the payment and the car, (overall and all things considered) as you analyze it financially, and it would make you happy, then do it. This thread so far has been friendly, but I have seen it get ugly with similar threads. Justin Bieber makes more than the average highest paid CEO's annual salary in less than a month, everything is relative.... many people behind a keyboard not only pretend to be rich, but also a certified financial advisor. Pay no mind. If it makes sense to you and your family, you will not regret a 4Runner. To save some $, perhaps consider a lower mileage example and skip (or shop around for) the extended warranty. These cars are pretty bulletproof, that $1500 would likely cover anything that could go wrong in the next few years.

Good luck and have fun with the hunt. Post your new 4R here when you get one!

 

Thank you so much, there’s a lot of great points that you’ve mentioned. I’ve been using cargurus, autotrader and cars.com for several months, lowest Sample I’ve found within 500 miles is $28k-29k for 2014-2015 models with either similar mileage or about 10k miles less, there are definitely some lower priced ones outside of that radius particularly in the west coast but I’m in the east so that’s out. As for the trade carmax and another local dealer offered the second highest at $4k, vroom, carvana, shift offered much lower, even down to $1k for the trade. So I’m thinking with the $7k trade that lowers the price of the 4Runner to $30k so not much more than what I’ve seen within 500 miles and saves me the trouble of the lower trade offers. At that point what’s adding up is obviously taxes, warranty and fees etc.
I do intend to do some light off-roading at some point but not right away, also for what is worth it they showed me an invoice showing that they replaced all 4 rotors, brakes pads and performed alignment prior to listing it. Anyway I haven’t committed to it yet and there are some great points that a lot of you have shared. Once again thank you so much for taking the time.

 

Sounds like you've done a good job in all of the due diligence in hunting. Given the other offers on the Volvo, I see your reasoning - this 4R has become a better deal. Sounds like cars on the East Coast might be more costly than here, which I didn't know. I guess the only things left to consider, if you decide to move forward, are rust (if that is an issue where you live), perhaps doing a pre purchase inspection at a mechanic if the dealer would accommodate (not a deal breaker, it is a 4R after all and you said it had a good maintenance history), and deciding if you want to do the extended warranty. That huge doc fee and higher price is a bummer, but I get it, they are offering you what seems to be well over market for the Volvo. Sounds like a viable option all around, in my opinion. Keep us posted!

 

I don't know if you have already considered KElly Blue Book... I just sold my Kia Soul this week, and they gave the highest offer for my vehicle. KBB does not directly buy or sell your vehicle, but they work like a search engine that gives a list of the best price offer for your vehicle. On the KBB results, you will be presented with the dealerships that will pay for your vehicle. You have to call around or go to the dealership though to have your vehicle assessed. In my case, I sent pictures of the "damages"/"imperfections" to one dealership, and the other wanted the vehicle in person. The dealership who wanted to see the car gave the highest offer, so I bit. You have to bargain though because they will try to pay as low as they can ... good luck

 

I did also, got tired sending pictures to multiple dealers and haggling since there is a lot of work needed in the vehicle and many imperfections, cracked windshield, someone keyed my door at a parking lot merely 5-6 months after I bought it and never got it fixed. so max they're offering is $4k.

 

I checked for rust underneath and the vehicle looked really good, surprisingly because it was owned in Florida before, not sure if the prior owner kept it garaged as it looked meticulously clean, also the engine looks like new, no kidding, I know the dealer did a great job at cleaning it and thanks god they didn't spray any armor all or any of that shit, but you can normally tell when parts/ engine components wear out over time like plastic reservoirs get yellowish etc, not this one, looked pretty good. another thing I noticed is when I inspected the paint, looked like a few very tiny paint chips at the front of the hood from highway driving I guess, were touched up and you could barely tell unless inspected, again I see it as another sign that the prior owner babied it.

ill go back tomorrow and who knows, maybe ill bring it home after all.