rwmorrisonjr

Am thinking about selling my 4Runner to pay off my bills and pick up a used Suburban as my ride for a while. Need some opinions about this, but here's my reasoning:

* My 4Runner is worth about $19-21K and is paid for
* I have approx $19k in credit card debt to eliminate
* I can pick up the 1997 Suburban for $10,800 with a 6% note for 36 months.

Here's the info on my truck:

-2001 SR5 4x4 4Runner, 43k miles, toys in signature
-Will sell with SC installed, not parting truck out except for electronic toys.

Here's the info on the Suburban:

-1997 Chevy K2500 Suburban LS
-454 ci (7.4l) V8 engine, mechanically clean
-Fully loaded, exceptionally clean, no collision/body damage
-Not offroaded
-129,500 miles, mostly highway.
-Clean Carfax: http://www.carfax.com/cfm/FSBO.cfm?...CFX000005488954
-Asking price $10,800, in line with Edmonds & Black Book for clean truck.


I test drove the Suburban today, and with the exception of needing new tires, the truck rides great. Met with the owner today, and he's about my age and a professional and has maintained the car at Luby Chevrolet, so I know it's been well treated. Am just mainly thinking about our current finances and eliminating debt to start the new year off right. I can pay the truck down fast and still save money in the process. All opinions are welcome & appreciated.

Have spoken with my fiance and we're both torn on this since my folks financed the 4Runner and I've been paying them , but I have the title. Help!

data

I've thought about selling my Runner also. Acutally I would like to sell it. I need to pay off some bills also

FirstToy

10,800 + tx/lic/reg= ?
additional maintence and repairs=?

Assuming you can get $19K for your 4R, how much do you have left to pay your parents?

Roughly $12K easy in the Suburban not including the additional maintence/repair costs and weekly gas $ increase.

Sell the 4R (at some point in the near future- but still figure in the cost to lnsure 2 trucks in the meantime) for $19K

You have roughly made only $7K if you're lucky. More likely it will be about $4-5K assuming you get what you want for the 4R and nothing mechanically happens with the Suburban.

Trading one used truck for another one, imo, is not worth the time/trouble/hassle. Especially when you are trading one with excellent reliability (that you know the history of) for one with avg/below avg reliability, higher insurance rates, less mpg's (that you don't know the history of) and the possible savings could be blown on one bad mechanical on the Suburban.

Unless you just want a change of pace and try a Suburban, if you really want to pay down your debt, look into a economy car (Accord, Camry, etc) that is alot cheaper, reliable and good on gas.

edit:
just read it needs new tires- well there goes another $500-600. What about the timing belt? Alot of stuff needs looking at around 100K miles.

I wouldn't do it

Sucellus

Well, just my two bits, but I wouldn't do it. Your looking at an American made Automobile with well over 100k miles on it. I know they're trying to convince us that the domestic automobile quality has improved in recent years, but I, for one, am a definate skeptic.

My point is simply this: you will need to factor on-going expenses into the formula. I would think that you'd be looking at some repairs. In addition, the amount of gas that the suburban with that engine is going to burn is going to be a significant expense. While your 4Runner may get 15-20mpg, you'll be looking at pretty close to 8-15 and most likely 8mpg.

And this all is still in addition to the finance charges and interest you will accrue with changing over.

Mine's all paid for as well, and I, for one, would be highly reticent to trade it on much of anything as long as it remains as reliable and wonderful a vehicle as it is now.

Why not take out a loan against it, at a low interest rate and just use that to pay off the CC? Their interest rates are usually pretty immense so I do feel for you, my good fellow.

dexter

hmm tell me if your selling it soon and at what price. i might be getting a new rig before i go to college (some problems might have risen out of my runner) and im looking to get a 00+ sc 4runner. either yours or my friends who got sent to military school


btw if anyone is possibly looking for a sc/headered 2000 4runner in millenium silver and oak interior with a westin brush guard and piaa driving lights, a sick sound system, and limo tint let me know they are thinking about letting it go CHEAP

MTL_4runner

I would use the 4runner as collateral on a loan to refinance the debt. CC debt is the worst type possible (because of the loan shark percentages they skim off you!) You should be able to get all that debt put onto the 4runner and save yourself a hefty chunk of change! I would keep the runner and just think of it as having a car payment again.

rwmorrisonjr

I know, that's what I've been considering. I got a quote from my credit union and the rate is definitely much better for $19K that the current c.c. rates are, and the payment is less over 48 months and can be paid off faster.

As for the gas, I'm going to be flying around the country for the next 6-10 months so I won't be using the truck as often so my gas bill will go down dramatically.

What I might do is get the consolidation loan and then move into something bigger next year, maybe a four door Tundra or similar. I do want to get something bigger and a little more comfortable for road trips and future kids!

Cebby

Are you saying that you have the actual title but your folks are still paying it off somehow?

rwmorrisonjr

No, I have the title but am paying them back for the loan.

Cebby

I thought I had read that wrong. My bad

williemon

If your looking to pay down debt, you need to go economy. That means a 6000.00 max for a used car. Try to get something for 3000. Pay cash for it and start paying those CC bills. Dont let those cards snow you under. I work with 3 guys now in their early to mid 20s that already have had problems due to CCs.

If your going to pay down debt by selling the runner, make it count BIG. Get out of debt, then buy another one.

4RunnerFever

I think you'll REALLY miss the 4Runner, I know I would. You just can't beat knowing you are driving one of the best. Of course I'm known to spend other peoples money with all my great suggestions

Keep the 4Runner, it rocks!

williemon

Consolidating the CCs into a 48 month loan is fine, IF, you cut up your cards and pay cash for everything untill the loan is paid off. Otherwise you will find that your paying the loan, plus you will rack up even more debt on the CC. I see you digging a hole to bury yourself in. Basicaly you still owe on the Runner too if you are paying your parents for it.

Read this link:
http://moneycentral.msn.com/content/...ebt/P42811.asp

X-AWDriver

That sucks;since seeing your Runner in person I was impressed and it would be a shame to let it go but I know the feeling having credit card bills lingering.

rwmorrisonjr

I know, that's the main ethical reason for keeping the 4Runner, aside from all its positives. As for paying cash, we've been doing that for about two years now, but want to get all the old closed accounts eliminated and behind us. All the cards are cut up & closed, so there's no worry about spending on them again.

BTW, great article, everyone should read it. Also www.DaveRamsey.com is a great site, and he has an awesome financial planning show.

hillbilly

Be aware that you'll probably incur additional yearly fuel expensives with that 454 cu. in.. The 7.4l could eat you alive in fuel costs depending on your driving environment...

lee

am i the only one who thought the subject matter of this thread would be 'help! talk me out of selling my runner!"?

rwmorrisonjr

Well, have applied for the consolidation loan through my credit union, will take two business days to decide and then they'll let me know. Wish me luck.

They also took down my dad's home number, I'm guessing as part of standard "where is he" info, so I don't think they'll contact him unless I default on the loan, but is always a worry since they don't know my plans.