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Message
Sell Paid Off SUV?
Posted on 12/22/22 at 9:40 am
Posted on 12/22/22 at 9:40 am
My 2020 SUV has three payments left and about 14k miles on it. Looks like I could sell it to a Carvana or trade it in for roughly $35-$40. A 2023 replacement looks to cost about $55k. Even with higher interest rates it seems like I should cash out on the equity? Never been a car flipper and this is the first time I bought brand new for frugal reasons.
Thoughts?
Thoughts?
16
Posted on 12/22/22 at 9:52 am to Motownsix
What would you replace it with?
Doesn't make much sense to sell IMHO.
Doesn't make much sense to sell IMHO.
Posted on 12/22/22 at 9:54 am to Motownsix
quote:
Looks like I could sell it to a Carvana or trade it in for roughly $35-$40
quote:
A 2023 replacement looks to cost about $55k.
So you're trying to justify losing $15-20k in 3 years?
Posted on 12/22/22 at 10:00 am to Motownsix
being paid off doesn't not come into play really at all.
Posted on 12/22/22 at 10:25 am to Motownsix
quote:
2020 SUV about 14k miles on it
If you're driving it less than 5k miles a year and you really need it. I would keep driving it for another 15-20 years
Posted on 12/22/22 at 10:37 am to Motownsix
quote:
Looks like I could sell it to a Carvana or trade it in for roughly $35-$40.
As someone said, it being paid off doesn’t really factor into it. What kind of actual profit are you making on the 2020?
Personally, I don’t see the upside, unless you’re making a serious profit on the present vehicle and you’re getting a steal on the new one.
Posted on 12/22/22 at 10:40 am to Motownsix
quote:
bought brand new for frugal reasons.
Lol. Yea so frugal.
Posted on 12/22/22 at 1:54 pm to Jag_Warrior
Only reason to flip a car in this market is if you have a need (eg. sedan to SUV to accommodate bigger family), OR, if going down market. For example, cashing out equity on a luxury SUV, and getting into a cheaper domestic/japanese vehicle.
Posted on 12/22/22 at 1:55 pm to Motownsix
quote:
I bought brand new for frugal reasons.
Ok. Solid troll and you got some bites. I laughed.
Posted on 12/22/22 at 2:18 pm to Motownsix
Enjoy not having payments, there's no need to trade in a paid off car with 14k miles to get 35-40k only to turn around and uby a 55k car with payments all over again. You're just throwing away money for no reason.
It doesnt excite you to have no car payment?
It doesnt excite you to have no car payment?
Posted on 12/22/22 at 2:50 pm to Motownsix
Are you a chick because you sound like my wife
Posted on 12/23/22 at 9:12 am to thunderbird1100
My thinking is I don't like sitting on money that isnt doing anything. If I sell the car I can use the money and borrow more money at a fairly low rate to drive something. Take for instance if you pay off your house and it is worth $700k. It does little or nothing for you because you live in it. If you sell the house, you can put $100K down on a new house and do something with the other $600K. I get some people (maybe a growing number around here) would rather be debt free rather than use money to increase wealth. For instance if someone gave me enough money to pay off my primary house today I wouldnt use the money for that reason. I'd apply the money somewhere else, and keep paying the mortgage at 3.5%.
Posted on 12/23/22 at 9:21 am to Motownsix
quote:
My thinking is I don't like sitting on money that isnt doing anything. If I sell the car I can use the money and borrow more money at a fairly low rate to drive something. Take for instance if you pay off your house and it is worth $700k. It does little or nothing for you because you live in it. If you sell the house, you can put $100K down on a new house and do something with the other $600K. I get some people (maybe a growing number around here) would rather be debt free rather than use money to increase wealth. For instance if someone gave me enough money to pay off my primary house today I wouldnt use the money for that reason. I'd apply the money somewhere else, and keep paying the mortgage at 3.5%.
Except a vehicle is a depreciating asset. You are not taking in the account that any "savings" you are creating by "investing the equity" is being completely wiped out by the difference in price you had to pay.
So unless you are selling the car and dont need another or selling it for something cheaper. You are losing money.
The house is a much different scenario, so it is apples and oranges.
This post was edited on 12/23/22 at 9:22 am
Posted on 12/23/22 at 9:47 am to Motownsix
Why sell it just to incur another loan for a vehicle?
Posted on 12/23/22 at 9:50 am to Motownsix
quote:
My thinking is I don't like sitting on money that isnt doing anything. If I sell the car I can use the money and borrow more money at a fairly low rate to drive something. Take for instance if you pay off your house and it is worth $700k. It does little or nothing for you because you live in it. If you sell the house, you can put $100K down on a new house and do something with the other $600K. I get some people (maybe a growing number around here) would rather be debt free rather than use money to increase wealth. For instance if someone gave me enough money to pay off my primary house today I wouldnt use the money for that reason. I'd apply the money somewhere else, and keep paying the mortgage at 3.5%.
HOw about this, instead of flipping your car equity into a new car thats the same thing for you except you're hopping back into a 20k note... Instead of doing that, you just take 10k and light it on fire during this cold spell. That way, you just pocketed 10 thousand dollars savings. You're welcome.
Posted on 12/23/22 at 9:52 am to Motownsix
Under no circumstances would I buyer a vehicle right now, especially with a 2020 ride.
Posted on 12/23/22 at 9:57 am to Motownsix
quote:
My thinking is I don't like sitting on money that isnt doing anything
This doesn't make sense unless you don't need the vehicle. There is equity in your vehicle but you presumably need something for transportation
You aren't saving money or leveraging cheap debt. You are making rationalizations for taking on more debt that will reduce your ability to save and invest
Posted on 12/23/22 at 10:19 am to UltimaParadox
quote:
Except a vehicle is a depreciating asset.
So unless you are selling the car and dont need another or selling it for something cheaper. You are losing money.
Exactly. If he was selling the 2020 and moving into an older one, that’s already taken the majority of the depreciation hit, this *might* make sense. But before I’d do what he’s doing (and I wouldn’t do this either), I’d get a loan against the 2020 to release the equity, instead of starting a new depreciation cycle on a new vehicle just to have some borrowed money in my pocket.
But now…if he’s able to make this work, I’ve been lusting after a 911 GT3 for a long while. I’d be glad to take out a car mortgage, I mean loan, and see how well I can increase my net worth by doing that.
Posted on 12/23/22 at 10:28 am to Motownsix
I wouldn’t do it. I traded in my 2017 F-250 but got 57k for it and it had 62k miles . MY new truck was 79k after discounts and I think taxes.
My out the door was 22k to go from a 5 year old truck with 62k miles to brand new so I did it.
My out the door was 22k to go from a 5 year old truck with 62k miles to brand new so I did it.
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