Exit Strategy — When Can I Trade? | Steve Ryherd

Vehicle valueLoan balanceUnderwaterEquity

Above water at

49 mo

That's 4.1 years in. Before this, trading would mean rolling over negative equity.

Match your cash-in

—

Add your down payment + trade equity above to see when you could do this same deal again.

At loan end (72mo)

$9,005

Vehicle's estimated value with $0 owed. Walk-away equity.

1.The loan

Vehicle selling price

What it sells for — sticker or negotiated price, before tax and fees. Depreciation tracks selling-price, not what you paid out the door.Amount financed

The loan principal — includes tax, fees, optional items, and any rolled-in negative equity. Usually higher than selling price.

Loan lengthCredit tier6.49% APR for 72mo

2.What you brought

Cash + trade equity in

Down payment plus positive trade equity. This becomes the 'match' target — when you'll have enough equity to do this same deal again.

If you put $5,000 down on this deal, you'd need $5,000 in equity in your current vehicle to do the same thing on your next one. The blue marker on the chart is when that lands.

3.Depreciation

Annual mileage

Higher miles wear value faster. Presets above also adjust the annual rate below; you can fine-tune either independently.

Annual depreciation

Percent the vehicle loses each year after the immediate drop. 15–22% is typical for Toyotas at standard mileage.Immediate purchase loss

The 'off-the-lot drop' — what new vehicles lose the moment they're titled. 8–12% is typical.

Want to refine the loan itself — sales tax, doc fees, optional items, trade-in details? Take this scenario into the full calculator.

Open in payment calculator →

Estimate only. Real-world depreciation isn't perfectly exponential — there's typically a steeper first-year curve that flattens over time. The two-knob model (immediate loss + annual rate) is a useful approximation; adjust to match your model and segment. Loan balance uses the standard amortization formula and matches what the lender would show.

APR estimates based on Wright-Patt Credit Union published rates.

When can you trade?

1.The loan

2.What you brought

3.Depreciation

Thinking about your trade cycle?