Trading in my XLT after one month for an FX4?

[GTGallop]

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[Acatron]

I think you made a good decision.

 

[Kemo Sabe]

Thanks for all the advice. I ended up going in and talking to the dealer. As you guys mentioned you cant combine the incentives with the 0% APR, so I would have had to give up $4k in incentives to get the 0% APR. Furthermore, though the KBB value on a trade in for the truck is $25.5k, they looked at how much I had bought it for and only offered me $22k, and were willing to go up to 23k at the end. I ended up not going through with the deal because I considered that losing $6.5k on a truck i bought last month was too much. What I did end up doing was refinancing through USAA at 3% APR for 60 months, so now I will pay off my truck sooner, and maybe upgrade to the new gen in 5 years when I do. Interestingly, when I was talking to USAA about refinancing they calculated the value of the truck to be $31k.
My plan now for fulfilling my recreational Off-Road desires is to buy a side by side or maybe an early 2000's 4x4 Ranger. From some light research I think I can get that done for around 8k. Also, I think that may work out better for me in the long run because I wont beat up my daily driver with off road use, and I can just keep my Ranger really well taken care of.

 

[Mark Sitter]

One thing to remember. Dealer fees, the elephant in the room that no one considers until you arer in the business office consumating the deal. I started looking for a Canyon Denali 2WD. The closest one was in Florida about 700 miles. The price was super good so I called the dealer and asked for an out the door price, ie truck, tax, tags and dealer fees. Now I know why the price was so cheap. The dealer fees were $1600 all in with a lot of garbage I do not want and the dealer refused to delete. Back at home the best price was higher but the dealer fee was $225 all in. Regardless the dealer was not going to trade for a car 700 miles away and all of his Canyons and Colorado trucks were 4WD. Which I now drive a 2WD Ranger and love it. So if the price looks too good it really probably isn't as good as it appears.

 

[corabellexo]

I had a similar buyers remorse when I got my XLT last year when they had their end of year incentives. I was looking at trading in my 4x4 for a FX4 a few weeks after I bought it. I don't remember the exact details, but I calculated it would end up costing me about $5000 ignoring interest to trade it. I mainly wanted the rear locker, but honestly didn't think it was worth that much.

My mindset was it was at least worth looking into, otherwise I would have always wondered if I could've made the swap. Realistically it is very unlikely going to be a good financial decision. If you're sure that you will keep the truck for a really long time, it could still be worthwhile. For me, I'd rather save the money and trade in down the road if I decide I do need the FX4.

When going to look at Rangers, the price difference really deterred me from even considering the FX4 (as I had quite a bit of negative equity & the difference would mean my payment was around $150 more give or take). But I have the same idea as you, enjoy my 2WD for now & if it becomes a harder pressed issue later on, I’ll deal with it then. ?? I wouldn’t hardly use the 4WD currently but I’m positive I’ll be looking at doing truck stuff in the next couple years of having a Ranger again ?

 

[Pkv126]

I have a 2020 XL 2WD drive and it works great for me. I even take it off road from time to time. The biggest upgrade I made so far to make this happen was a good set of A/T Tires. That alone made a big difference. I also have quite a bit of experience driving 2WD vehicles in off road conditions, so that helps as well.

Also, never go out alone. Always have a buddy with you that has a 4x4. Unless you start to get more things to assist with self recovery.(Still have a buddy though, it's a life saver)
Winch
Traction Boards
Front and back recovery hooks
Etc etc etc

 

[Motorpsychology]

All dealers appraise the trade in at wholesale, sometimes called loan value: what can they expect to get for your trade at auction/how much might a bank loan on it. "Trade in value" is an artificial term that looks at the value you might expect for your trade against the MSRP of the one you are buying. You'll likely see a higher trade in number against an Expedition Platinum that you would on a 2WD Ranger XL, even thought the appraised value doesn't change, or very little.
If the dealer shaves off all or a significant portion of the margin as discount, there will be little or no money left to "fluff up" the trade value.
The difference between what your trade is worth and the price the dealer will sell the new vehicle for is what you ultimately pay: trade's wholesale value + cash = deal, whether you negotiate both sides of the deal (recommended) or get a "one price offer."
The cheapest way to buy a vehicle is sell your trade yourself then buy the new vehicle outright. Dealers offer convenience: you don't have to advertise your trade, wait for people to not show up, spend half a day with someone that can't get financing after two more days, etc. and you should expect to pay for that convenience.

 

[gfitzge2]

All dealers appraise the trade in at wholesale, sometimes called loan value: what can they expect to get for your trade at auction/how much might a bank loan on it. "Trade in value" is an artificial term that looks at the value you might expect for your trade against the MSRP of the one you are buying. You'll likely see a higher trade in number against an Expedition Platinum that you would on a 2WD Ranger XL, even thought the appraised value doesn't change, or very little.
If the dealer shaves off all or a significant portion of the margin as discount, there will be little or no money left to "fluff up" the trade value.
The difference between what your trade is worth and the price the dealer will sell the new vehicle for is what you ultimately pay: trade's wholesale value + cash = deal, whether you negotiate both sides of the deal (recommended) or get a "one price offer."
The cheapest way to buy a vehicle is sell your trade yourself then buy the new vehicle outright. Dealers offer convenience: you don't have to advertise your trade, wait for people to not show up, spend half a day with someone that can't get financing after two more days, etc. and you should expect to pay for that convenience.

I agree on all your points. I am an A plan buyer so there is no room for a dealer to "fluff up" your trade in value. Some times that makes you get your feelings hurt because you get the real value.

One other trade vs sell thing to consider. In my state ( like many others I suspect) there is sales tax on the amount of the final transaction amount. So if I buy a $40,000 vehicle I pay 6% sales tax or $2400. If I trade in a $20,000 vehicle the final transaction price is $20,000 so my tax is $1,200. So if I sell my old vehicle myself I have to get $1,200 more than the dealer offered, just to break even. That just becomes one more factor to consider. In the past I have traded some and sold some myself. I agree about the convenience factor. I just have to have a pretty good idea what my trade is worth before I go in and decide if it is worth the hassle of selling it on the open market.

By the way, I think the original poster made a wise decision. Even with the good deals available right now, once you drive that new vehicle off the lot you have spent a lot of money that you are unlikely to recover.

 

[zinctwentyone]

whatsup everyone,
This is my first time posting but I have been creeping on here for several months. Im looking for some advice that I should have asked for previously. Long story short I bought an XLT sports package 2wd on february 15th. I got a good deal on it and though the MSRP was about 33,500 I got it out the door for 28,500. I did put 8k down. However, I really got screwed with the financing, somehow the guy talked me into a 75 month loan at 4.99 percent. I already started looking into refinancing and looks like I can get 3.00 and go for 60 months with larger payments I know I can afford. My credit score was 760 when I bought this truck.
However....

This was my first truck, and after having it for about a month I love it, but now after getting a taste of the truck life I want a truck with more off road capabilities. Since this whole CoVid disaster is taking place I saw there are great offers right now on a Ford ad, so i started looking online again. I found an XLT FX4 with towing, and running boards which I wanted to add to my truck, locally for an incredible $10,400 off MSRP at 29371 (https://www.jarrettgordonfordwinter...d-Ranger-7df9d8070a0e0ae847bd028f5f446015.htm).

It looks like I can get $25,500 for trading my current trade truck in which means I would lose $3k. However, right now ford has the 84 months no interest which means I would save about $3k in interest during the life of loan at the current interest rate.

Sorry for the long post, but What Do you guys think? should I pull the trigger on the truck I think I will be happier with in the long run? thanks for your advice

Thanks for the link. Just started looking in Orlando with not great luck, also looking for a 4x4 xlt, these are pretty good deals.

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