just a question, wondering if anyone has ever traded down for a truck? such as say a 2005 for a 2001 or something like that?

i always hear of poeple trading up, its normal, but not trading down.

i guess to clearify the situation, my friend has a 2005 psd, he likes it, but he now wants to uit his job and start school full time. he wants to stay with a truck, but he can't afford the payments of the 2005. he has been thinking abouot trading it in on an older one, he seen some 2001 and 1999 for sale at the car lots and wonder what kind of situation will he be getting into if he trades down for one.

will it make his payments cheaper? is it an overall good thing to do given the circumstances?

 

I traded a 95 F-150 2wd for a 79 F-150 4wd. Lets say he owes 35k on the truck he has, he goes to trade it in on an older truck thats selling at 20k. The dealership may only give him 28k for the old truck which means the remaining 7k has to come from somewhere, either he brings the cash, or they can try and throw it on the new truck loan. Problem is the new loan with the rollover from the last truck exceeds the value of the truck you are trying to get, and the bank refuses you the loan. I tried this for a while when I still owed money on my 95, every place I went wanted at least $1500 cash to make up the difference. I ended up getting a personal loan to pay off my 95 so I could do a straight trade for the 79.

 

just a question, wondering if anyone has ever traded down for a truck? such as say a 2005 for a 2001 or something like that?

i always hear of poeple trading up, its normal, but not trading down.

i guess to clearify the situation, my friend has a 2005 psd, he likes it, but he now wants to uit his job and start school full time. he wants to stay with a truck, but he can't afford the payments of the 2005. he has been thinking abouot trading it in on an older one, he seen some 2001 and 1999 for sale at the car lots and wonder what kind of situation will he be getting into if he trades down for one.

will it make his payments cheaper? is it an overall good thing to do given the circumstances?

The big question is what his equity situation is in the '05. Unless he put a fair chunk down, he may be even or even "negative," and that negative is going to get rolled into the new payment. Then, on an older unit, payments can't be stretched out as long, and the rates are usually higher. Many lenders won't go past 6 model years at all.

 

Well thanks for asking the question. In about another month i'm going to attempt to trade a 2000 F150 Supercab Lariat, owe about 8500 on it, for a smaller Ranger. The rangers i'm looking at is in the 8500 to 9000 range, probably less since I know they won't give me 8500 for the f150 and I'll have to add the extra on to the other truck. I haven't talked to any dealerships yet but I'm not looking forward to it. The only bad thing is that i'll probably be up upside down in a loan so I'd better buy what I want. You beat to the question by about a week.

 

i discussed with my friend, his whole point is to lower his monthly payments, but in talking, the amount he would save in theory, heck, the money he would have to put down would be a big hit in the wallet also.

he owes like 36k on his truck, he was looking at a 1999 for 20k, it has 107k miles on it, very nice truck, even has a lift, lariet edition.

if i was him i would just keep what he has aand try to come up with money for the payments, the difference in the payments each month to me isn't worth it.

 

He'll probably take the biggest hit tradeing that thing in. Maybe sell outright and buy something a lil older?

 

Back in '97 I had a 95 F-150 xl standard cab long bed 5.0 auto 2wd. I needed a 4x4 so I traded for a 91 F-250 4x4 xlt supercab 5.8 auto. Dealer did an even trade because the values were the same.

 

I had a 93 F150 given to me thru a family death, it became a trade in for a super clean 65 F250, this was a trade UP not down to me as I ended up with a solid plastic and smog free truck.
.....=o&o>.....

 

A credit union loaned me the dough for a 10 year old F250 at just over 5% interest.

I'm guessing he's probably "upside down" in his '05, so any amount of negative equity's going to have to be rolled into the new (older) truck loan, and the banks probably won't do that unless he gets a heck of a deal on the '01. The biggest problem with those new vehicles is that they depreciate about 10% the second you drive it off the lot. Some vehicles (Cadillacs, for instance) can depreciate 50% in just a couple years under normal driving--real easy to get upside-down in.

Jason

 

I had a 1% car loan 24 years ago the car was considered used even with 4.3 miles on the odie. I paid it off after the first year, it was a DMC and and now has 314 original miles.
.....=o&o>.....