Does this sound like a good deal?
 

I am looking to trade in my 2006 Toyota Tacoma PreRunner Longbed sport package with 65,xxx miles with some body damage. I currently owe $6,200 on the truck. KBB says that it is worth about 16k in excellent condition, and about 14k for fair condition. I would say that the truck is in fair condition as everything on the truck is perfect except for a big dent on the rear drivers side panel on the bed, and a few dings here and there. Mechanically, everything is good.

I am looking into buying a base+sport. I talked to the internet manager and she says that she can take my truck for a trade-in and give me the car at payments of under $500. Given that I can get the Z at invoice of $31,365, apr at 3.99%, and with positive equity from the trade in of about 9k, I am looking at about $463.75 per month. Does this sound too good to be true, or do you guys think that I am dead on and should pursue this price, or is there anyone out there that thinks that I can push for a better deal? She has not confirmed a monthly payment with me over the phone, she wants me to come in tonight at 8 to further negotiate. What do you guys think?

First, you gotta keep the truck trade-in and purchase of the Z completely separate. Do not let them start taking from one hand to give to the other. Keep them separate to help your decision.

Easy one first...your Z. If it's the Z you want, color/options/etc, all at invoice...great! Sounds like you got a deal. Lock that invoice price in with them in writing and move on to the trade-in.

Your truck. You said it's worth XXX from KBB. Check 2 other sites. Try NADA and Black Book and see what they say. Average all of the "Fairs" and then average all of the "excellents" between the 3 sites. Keep those 2 numbers in your head. Ask for the average of excellent, and don't take less than the average of the fair....as long as you honestly believe it's at least "fair". Be sure to print out a "pay off quote" from your current lender for the remainder of the loan. Some loans have a payoff penalty and others won't make you pay the remaining interest, get with your lender on that.

Now that you have those 2 figures (trade-in equity AND cost of the car), you can start working with numbers. You might be able to work with that APR, although it's a good one. Be prepared to decline warranties (unless you want them) and fight off dealer fees ($500 documentation fees out there!) and you'll get the payment you're stuck with. Make sure you're comfortable with it.

Remember, you always have the option of saving and then paying off your truck yourself, and then trying to sell it private party, for $$$ more than the trade-in value.

I'm holding off on the purchase until I get a better insurance quote. I am looking at over 300 a month right now which is quite ridiculous. And so the waiting game begins...