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I am $45,000 richer today

 

   


golum

May 25, 12 14:22

Post #1 of 22 (2166 views)
I am $45,000 richer today Quote | Reply

We have a 2001 Sequoia with 220k on the odometer. I wanted to go to the Memorial Day Toyotathon to get a new SUV, but I couldn't get my wife excited about the idea. I guess we'll drive it until the engine blows up.


Hubblesmith

May 25, 12 14:38

Post #2 of 22 (2137 views)
Re: I am $45,000 richer today [golum] [In reply to] Quote | Reply

Why do you hate America? The terrorists have won.


ChiTownJack

May 25, 12 14:40

Post #3 of 22 (2134 views)
Re: I am $45,000 richer today [golum] [In reply to] Quote | Reply

you're bad at math - you are no richer or poorer than you were yesterday - your net worth has not changed.


FJB

May 25, 12 15:28

Post #4 of 22 (2059 views)
Re: I am $45,000 richer today [golum] [In reply to] Quote | Reply

You need to put this in the backdoor brag thread. :)


(This post was edited by FJB on May 25, 12 15:28)


iRan

May 25, 12 15:34

Post #5 of 22 (2047 views)
Re: I am $45,000 richer today [golum] [In reply to] Quote | Reply

Ha! Happy to hear I am not alone. We are currently on the same plan.

We have a 2004 Sequoia with 136k that we paid cash for in '04. This car has been used and abused (bought it when our second daughter was born) and just keeps on running. Looks a little beaten, but hey...what do you expect?

<knock on wood> we've never had a major issue.

My wife wants to buy a new SUV but every time we go to the lot...we balk at the idea. She figures every month she's saving $700-$1,100 (what we'd pay for the few models that are on our list). End of the day, when we replace it, I think we'll end up with another Sequoia...it's just too reliable.


golum

May 25, 12 15:56

Post #6 of 22 (2011 views)
Re: I am $45,000 richer today [jar1635] [In reply to] Quote | Reply

Oh, decisions, decisions.

We put in. a used tranny last year for $3,500. Today, our mechanic says to replace exhaust manifold (check engine lights been on for 2 yrs... Engine is noisy) could cost that much again.

Opinions? I could still drive it as it gets louder them maybe dies, a la Jethro Clampet.


mopdahl

May 25, 12 16:18

Post #7 of 22 (1988 views)
Re: I am $45,000 richer today [golum] [In reply to] Quote | Reply

So lets assume it is another $2500 to fix the manifold; whats the car worth IF you were to sell it right now in as-is condition?

What would payments be on a new $45k++ car?

There are all sorts of theories as to when to sell, but given that its a Toyota, and a Sequoia (truck) as well, I'd fix it. Land Cruisers (which the Sequoia isn't) routinely goto 300k miles (more if diesel), and then some---especially the newer 80's & 100 series, and even then they are worth $5-10k for the 4x4/overlander enthusiasts.

The new Sequioa is going to depreciate slower than most, but its still going to only be worth $25k in 5-6 years or so, depending on which build (not the Platinum for $45k) & miles. Assuming you finance, you are looking at roughly $55-65k in total costs (acquisition + finance costs + additional maintenance costs) for a "new" car over the next 5-6 years with a residual value of $25k---so $30-40k cost. If you current Sequoia is going to cost you $35-40k over the next 6 years (maintenance/repair costs less sale cost) it might be time to bite the bullet & buy a new one, else financially it makes the most sense to keep it.

But financial calculations rarely come into play with vehicles, which are both depreciating assets as well as status symbols in the US.
____________
“There are two novels that can change a bookish fourteen-year old’s life: The Lord of the Rings and Atlas Shrugged. One is a childish fantasy that often engenders a lifelong obsession with its unbelievable heroes, leading to an emotionally stunted, socially crippled adulthood, unable to deal with the real world. The other, of course, involves orcs.” John Rogers

(This post was edited by mopdahl on May 26, 12 12:57)


golum

May 25, 12 16:29

Post #8 of 22 (1971 views)
Re: I am $45,000 richer today [mopdahl] [In reply to] Quote | Reply

U r likely correct that I should fix it. Even if it only lasts a year, I'm thousands ahead.


iRan

May 25, 12 16:30

Post #9 of 22 (1968 views)
Re: I am $45,000 richer today [golum] [In reply to] Quote | Reply

If I was staring at that repair bill, I'd buy. BUT, that is because ours shows a lot of wear on the body and interior - and our kids are now at the age where we know (hope) they won't trash it like when they were younger.

Like Mopdahl says below, cars are a status symbol...and ours doesn't speak well of us ;-p Mostly because our nanny closed the garage on the back hatch and left two vertical scrathes all the way across.

when you turn on our radio, the antennae motor makes it sounds like the car is about to go into orbit. We make a point not to turn it on or off around people.

Are you going to go with another Sequoia? We are down to that, a Land Cruiser or the MB GL. My wife is adamant about having more than 5 seats.


(This post was edited by jar1635 on May 26, 12 5:57)


timboricki

May 25, 12 16:38

Post #10 of 22 (1958 views)
Re: I am $45,000 richer today [golum] [In reply to] Quote | Reply

Fix what you have. Take the $1,000 monthly payment that you are not making and save it. In a year when you are ready for a new (or a used Sequoia with 25,000 miles on it) you will have $12k (or more if you invest it properly) for a down payment.


graveling

May 25, 12 16:47

Post #11 of 22 (1950 views)
Re: I am $45,000 richer today [golum] [In reply to] Quote | Reply

golum wrote:
Oh, decisions, decisions.

We put in. a used tranny last year for $3,500. Today, our mechanic says to replace exhaust manifold (check engine lights been on for 2 yrs... Engine is noisy) could cost that much again.

Opinions? I could still drive it as it gets louder them maybe dies, a la Jethro Clampet.

It should not cost that much. I'm guessing both BOTH manifolds would be about 500 $ in parts. I did the manifolds along with the entire exhaust system, including cats, for about 700 $ using parts from RockAuto. Note on Toyota manifolds. The original manifolds on my v8 Tundra were garbage. It's a known issue in the Tundra. I'm guessing the same for your vehicle as the engine is likely the same (4.8L?). The flange where it connects to the head is too thin, leading to cracking. In fact you are better off using an after market manifold or header as they are much more durable. Get another quote on the manifold.
---------------------------
When I die, I'd like to go peacefully. In my sleep. Like my grandfather.
Not screaming, like the passengers in his car...


mopdahl

May 25, 12 16:54

Post #12 of 22 (1939 views)
Re: I am $45,000 richer today [jar1635] [In reply to] Quote | Reply

How many kids do you have? How many cars in the family? Is this the primary D2D driver or the weekend getaway/vacation/family truckster?

As to your vehicle choices, and some advice on buying cars from someone who used to run automotive financial companies (and I just finished making the same decision you are facing on the same vehicles): I have a 2009 Mercedes GL320 (diesel). Bought it used 18 months ago from a Lexus dealership in TX (for $54k, 14k miles, $10k back of book then), paid cash, and saved the CA sales tax at registration by gifting it to my wife at time of titling it in CA (if you buy used/new from out of state, to save yourself the sales tax in your state make sure you are buying from either a private party or from a dealership in a non-reciprocal tax state to yours). Now the GL has 49,900 miles on the odometer, has been in the shop 5x in the last 6 weeks with suspension & electrical issues, and I'm facing a $4000 (list $5k) cost on a warranty to extend it to 125k miles/3.5 years.....all for a vehicle that will depreciate $1k per month for the next 24 months based on the residual/resale value of the 2007s & 2008s now in the marketplace. At 125k miles I would definitely have to sell---per my service advisor, the cost of the repairs I just went thru w/o a warranty would have been in the $7500 range. The GL is a GREAT car---ride quality is great, diesel is awesome (avg overall 20mpg), and the fitout is pretty solid with all the necessary techno goodies.

However, to me, it isn't worth $1k per month depreciation + another $3-4k per year in service/maintenance. I can sell it now, for about $41-42k based on what similar make/mile/color/option vehicles are going for on ebay/cars/autotrader, probably $45-46k + quicker if I go ahead & get the $4k warranty right now giving the next buyer piece of mind. Thats not bad depreciation over 18 months/35k miles. I looked at both new & 2-3 y.o. Platinum Sequoias & they are just too big IMHO---I previously had a Nissan Armada & they are big, big, big---just no fun to drive/park + the new Platinum Sequoias are $60k.....just too much (thought they depreciate very slowly).

So I just bought a 2006 Land Cruiser with 90k miles on it for $24k + it has all the goodies I wanted, including a front ARB bumper (goal is to turn it into a family expedition truck over the next year or two & keep it for 10-20 years). We only have 2 kids & 2 big dogs though---I didn't need the 3rd row (and maybe only used them 2-3x over the past 18 months with the MBZ). I spent a ton of time researching them (http://www.ih8mud.com) and learned what to look for & looked at about 30 of them before I found exactly what I wanted. Depreciation is basically nill on these at this point--$1k annually for every year of age & another $1k for every 10k miles, but in actuality its much less than that. Maintenance is extremely inexpensive--$1200 for the 90k service sometime in the next 2 years (need to replace H20 pump/timing belt/repack all bearings/CV joints/etc) but that is it outside of some type of irregular component failure (buying a model Toyota that has been in the market for 5-6 years almost guarantees a stellar component performance future). The only thing that really, really sucks is the gas mileage---realistic average is about 14.5 mpg overall based on my experience over the last week.

So my advice, unless you absolutely need, on a daily/weekly basis "good" 3rd row seats, to buy a 2006 or 2007 LC. Take your time in shopping to find the best one with your desired options/colors/condition (you can ignore mileage). If you must have the 3rd row, then a 2008 or newer Sequoia isn't a bad option---I like the trim changes in 2008, and at 4-5 years, once the vehicle is out of warranty & with higher gas prices, people tend to get rid of them.

I would absolutely not buy new. There is almost nothing in the 2012s that wasn't available in the 2006-2008s, or that you can't just add for $200-1k aftermarket.

And fwiw there is a ton of info at Toyotanation forums about where to source aftermarket items such as the antenna motor for cheap.
____________
“There are two novels that can change a bookish fourteen-year old’s life: The Lord of the Rings and Atlas Shrugged. One is a childish fantasy that often engenders a lifelong obsession with its unbelievable heroes, leading to an emotionally stunted, socially crippled adulthood, unable to deal with the real world. The other, of course, involves orcs.” John Rogers


iRan

May 25, 12 17:08

Post #13 of 22 (1920 views)
Re: I am $45,000 richer today [mopdahl] [In reply to] Quote | Reply

Thanks for the input. We are looking almost exclusively at used (coming off lease from dealer and from a dealer that specialized all types of higher end leases).

We have three kids and all do multiple sports/activities - so we use the 3rd row somewhat regularly. But, less, now that my wife went back to work.

This would be my wife's primary car. Although, I'm trying to sell her on a smaller sedan for her commute and keeping the sequoia for when we absolutely need it.

Appreciate the input on the GL. I loved the ride and extra's but I've been a bit leery of quality. I'm on my second mercedes sedan and have done ok, but without the warranty...i'd definitely be out of pocket for a few majors.

I'm going to start scouting our LC's.

Also, I'm in CA and I like the idea of buying out of state. What else should I know other than private dealer on non-reciprocal state?

Thank you!!


mopdahl

May 25, 12 17:51

Post #14 of 22 (1879 views)
Re: I am $45,000 richer today [jar1635] [In reply to] Quote | Reply

If your wife is used to driving the Sequoia she will like the LC---its a bit wider & more truck-like, but feels 10x more solid.

I would go with 06 & 07 vs older as they have side air bags & VVT. The 2008 & newer are more luxury minded, and feel smaller, and are going for a super-premium. Quite a few LC enthusiasts believe that 06 & 07 are the best models out there for price/performance/durability/overall.

As to out of state---shop, shop, shop for the best transport costs---if you aren't in a hurry you can save $400-500 cross-country. Lots of portals that will hook you up with multiple shippers & play them off each other. They are making the trip regardless, & need your car to cut their costs, not vice-versa.
____________
“There are two novels that can change a bookish fourteen-year old’s life: The Lord of the Rings and Atlas Shrugged. One is a childish fantasy that often engenders a lifelong obsession with its unbelievable heroes, leading to an emotionally stunted, socially crippled adulthood, unable to deal with the real world. The other, of course, involves orcs.” John Rogers


golum

May 25, 12 18:52

Post #15 of 22 (1814 views)
Re: I am $45,000 richer today [graveling] [In reply to] Quote | Reply

The manifolds were quoted at $450 apiece. I'll ask them for after market. They hours quote is 14 hours of labor, though the mechanic is going to see if there's a way to do it w/o that much.


golum

May 25, 12 18:54

Post #16 of 22 (1808 views)
Re: I am $45,000 richer today [mopdahl] [In reply to] Quote | Reply

Thanks, all, for your good advice. I appreciate being able to post here and get such good and and timely feedback.

Now, who should I vote for in 2012? ...just kidding...


jharris

May 26, 12 4:22

Post #17 of 22 (1663 views)
Re: I am $45,000 richer today [golum] [In reply to] Quote | Reply

Driving a car that is paid off isn't "free". Your still facing depreciation and maintenance. Personally, I haven't been able to own a car for less than $175-$200 a month when you consider original purchase + maintenance - sales price. Sometimes, buying a newer car gets you closer to this than driving an older car and running the risk of higher maintenance costs. Unless you have purchased a warranty, but then that adds to the expense. For me, I drive a car until I see the used market putting me in the $200 a month category or less..... Then I sell my car and start over.

Honda civic years ago was the best. Cost me $800 to own for 3 years. I'm on an accord now.

More $ for bikes!


TurboX

May 26, 12 5:22

Post #18 of 22 (1640 views)
Re: I am $45,000 richer today [mopdahl] [In reply to] Quote | Reply

mopdahl wrote:
and saved the CA sales tax at registration by gifting it to my wife at time of titling it in CA (if you buy used/new from out of state, to save yourself the sales tax in your state make sure you are buying from either a private party or from a dealership in a non-reciprocal tax state to yours).

I am intrigued.. would this work with anyone or do you need a dealer license in order to be able to pull it off? Also, is this a CA loophole or I could do it in other states?

Thanks!


TriDavis

May 26, 12 6:07

Post #19 of 22 (1625 views)
Re: I am $45,000 richer today [golum] [In reply to] Quote | Reply

golum wrote:
Oh, decisions, decisions.

We put in. a used tranny last year for $3,500. Today, our mechanic says to replace exhaust manifold (check engine lights been on for 2 yrs... Engine is noisy) could cost that much again.

Opinions? I could still drive it as it gets louder them maybe dies, a la Jethro Clampet.

You can get both sides for under $400 and it is not that hard to change out. No way would I ever pay $2500-$3500 for that to be done.


golum

May 26, 12 9:59

Post #20 of 22 (1572 views)
Re: I am $45,000 richer today [TriDavis] [In reply to] Quote | Reply

Too bad you don't live in E. Ia. I'd hire you.


mopdahl

May 26, 12 13:01

Post #21 of 22 (1537 views)
Re: I am $45,000 richer today [TurboX] [In reply to] Quote | Reply

Its an IRS rule---gifts to spouses or others are tax free. Now, it also depends on the state---if for example I bought a car from a dealership in IL, MA, MN and a few others, I have to pay the sales tax at time of purchase, even on an "internet" sale, so that probably doesn't apply. For private party sales (internet, out of state buyer) in those states I'm not sure---I've never had a state come after me for non-payment of sales tax on these type transactions (not that I've done that many).

I'm sure this is a loophole that will close soon as the states realize the $$$ they are losing on these type of transactions. On a $50k car, you are looking at $3500-5000 savings. Shipping is $400-800 depending on where/when/how, so more than enough savings.
____________
“There are two novels that can change a bookish fourteen-year old’s life: The Lord of the Rings and Atlas Shrugged. One is a childish fantasy that often engenders a lifelong obsession with its unbelievable heroes, leading to an emotionally stunted, socially crippled adulthood, unable to deal with the real world. The other, of course, involves orcs.” John Rogers


MOP_Mike

May 26, 12 14:01

Post #22 of 22 (1507 views)
Re: I am $45,000 richer today [mopdahl] [In reply to] Quote | Reply

I think you may have crossed the line between "tax avoidance" and "tax evasion". I believe CA imposes a use tax on exactly this type of sale, which you appear to be illegally evading.


"...Sometimes it's about getting the most speed out of the motor you have." -- Tom A.

   
 
 
 



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