Need advice trading Sienna 2005 with Prius two

I don't shop for cars by payments. Read Confessions of a Car Salesman - Edmunds.com about the "4-square" system as to why. What sort of cost are you looking at on the Prius Two? Hope it's at least as good as http://www.toyotasunnyvale.com/specials/index.htm which currently says

You might be able to do better on the car loan (like https://www.cefcu.com/loans/vehicle-loans.php).

If you trade in the Sienna, you likely won't get much for it vs. selling it on your own, but you'd have to worry about the $ you owe on it still (I've never dealt w/that situation). As an FYI for others, CA isn't a state where trading in saves on sales tax on a new car.

Do look at http://www.consumerreports.org/cro/cars/most-fuel-efficient-cars.html and http://www.consumerreports.org/cro/...-fuel-economy/best-and-worst-fuel-economy.htm (Sienna's there are likely newer than yours) to better set your FE expectations. What mileage are you getting now (via manual calculations)?

 

I agree that you should not shop based on car payments as that is one of the easiest ways for a salesperson to mess with you. Go out and find your best deal and then figure out financing yourself - sometimes the dealer will be able to offer the best deal, often though you are better off with a place like your local credit union. Once you have this you can look at the monthly cost and see if it fits your budget.

You also might want to go back and check the numbers on the Sienna as you likely have more like 2.5 or 3 years to go at $300 a month - I do not know if this would play into your decision one way or the other.

It does not hurt to bring the Sienna into a dealer and find out what they will give you in trade - at least you will have a place to start in terms of valuing it.

It sounds though like you are asking if we here think that it is a sound financial decision to sell the Sienna and get a Prius. If you look at it from a strictly financial standpoint the answer would likely be no. You are typically better off keeping what you have. Just think of it this way - the difference in payments as you outline in your post are about $132 a month - then figure that insurance would likely be more and things like auto excise tax (if you pay it in your state) will likely be more as well. That difference in payments will likely be more than your gas savings.

 

If you had $2K in the bank to put down, that's nearly enough to buy a decent 90-something Civic/Tercel/Corolla that gets >30 mpg.

When you have kids, your kids will have friends. It is highly convenient to have a 6-8 passenger vehicle, to haul everyone. Pay off that Sienna and keep it until the wheels fall off.

 

According to Kelley Blue Book, an '05 Sienna with 96K miles is worth between $7500-$5000 trade-in value for the lowest trim level (CE).

That means if you trade-in, you are either under-water for that car (owe more than it's worth) or get nothing (the amount you get for the trade-in will be barely enough to pay off your car loan).

So in your case, trading it in right now for a new car would not be a good financial move. I'd keep the Sienna until you pay off the loan. Then think of replacing it with a new car.

 

Sad thing of it all, Seilets might be right. With your daughters being 4, the next car will end up being another big car mostly cause your kids will have friends and a Prius, regular or v type, will probably not cut it as nicely as a Sienna (Rode in one) The 7 seating would be more ideal in the longer run for you, despite the milage and the fuel ding. Especially if your kids are going to be 'sports active', then you are looking at being the soccer/baseball/whatever parents who will need the extra room for not only the gear but the people.

In the long run, yes, the gas will hurt, but I think you might be hurting more trying to twist your finances this way too.

 

We traded in a Sienna XLE AWD for our v3 but we no longer have kids that need running around. (They run themselves around) Almost all trips the last couple of years were one or two people. It was a great road trip vehicle and I think you may regret getting rid of it. Since you're asking, I would keep the Sienna and after it's paid off look for a economical "run around" car. It's almost impossible to justify a new vehicle based on gas mileage.

 

First thing, "confessions of a car salesman" is a load of crap. So is Kelly Blue Book. There is no dealer in the country that uses kbb as a guide to appraise a trade. I have worked in auto sales for years, from on the floor to finance and the more bullshit you read on the internet the more you are going to cloud your head and make it a poor experience for you.

First thing you should do is go to Galves: Better than Kelley Blue Book for used car values! and find out the real value of your trade. Galves is what most dealers use as a guide to appraise your trade.

Second go to NRA and click on member discounts. Then click on NRA Car Buying Service. This will allow you to build a car and see the invoice price and any available incentives.

Third go to www.capitalone.com and get pre-approved for an auto loan. They usually have some of the best interest rates around. And you can go to your local bank/credit union if you want too.

Now you are armed with actual facts. What your cars is worth, what the new car is worth and what finance terms you qualify for before you even enter the dealership. When the dealership asks if you want to finance with them you can say "I have X interest rate from Y bank, if you can match or beat it I will finance here otherwise I will finance with Y"

If the numbers work and you can swing the payment, then great if not then walk away. It's as simple as that. There are always going to be variables like "my car is out of warranty" or "I have negative/no equity". Remember a car is not an asset, it is a liability. As soon as you buy it it begins to depreciate and cost you money. The advantage of the Prius is it makes the downward spiral less severe.

 

That's great, but some people do.

 

KBB is used by dealers when selling cars to you. It is inflated for the dealer to use.
People also like to use it because KBB make them think their cars worth more.