Truck debt too much.

[autoxer]

I use my truck almost daily.

Are you using it to earn money?

[riverwed070707]

I use my truck almost daily. Finding Someone who will pay 31k for a truck might be hard. I'll throw it on craigslist today.

One last thought - because its a new, expensive truck, I'd think you'd widen your pool of buyers if you put it on a site like cars.com rather than craigslist. You'd be surprised how far people will drive for the vehicle they want, just make sure you're pricing it for FSBO and not dealership prices.

[riverwed070707]

I was saying if I were to trade it in on a cheap 10k truck. But then I was thinking if I spend 10k on a truck and lets say I had 2k negative that puts me at 12k. Instead I put that 12k on my current truck. Refinance so the payments drop and then I have a good truck that will last me 10+ years. Its a toyota tacoma and I know they will last.

I'm only thinking about this because if I buy a 10k truck Most all of them are over a 100 thousand miles. So after its paid off it might not last that long maybe 3-4 years. Plus trucks at this price are usually not double cabs and we need a back seat for when we have kids.

Thoughts?

Really need to change your thinking if you're going to get out of this debt situation. First of all, 100k on a truck doesn't mean its only going to last 3-4 years. They last longer than cars. We got a 2004 crew cab F150 2 years ago with 145k miles on it for $14k. DH drives 200+ miles a week for work, we haul our boat and use it for personal and its doing just fine about to cross over 200k. Its had some maintenance issues but those have cost far less than what you're dumping into your monthly payment.

Second of all, while I agree the extended/crew cab is nice, its ridiculous that you would make it a requirement for hypothetical future children, especially when you have another car that could be the family car. You could even have a cheaper, paid off truck and buy another car once kids are a reality for you and it would still all cost less than trying to pay off the current vehicle. You bought too much car for your income - take your losses and correct the situation. In 10 years, you'll be happier to have money in savings and retirement than you will to have a 10 year old truck that you paid double the value for.

[Fishindude77]

What do you use your truck for daily?

[bruce101]

I use my truck almost daily. Finding Someone who will pay 31k for a truck might be hard. I'll throw it on craigslist today.

[JoeP]

If your job doesn't require a truck, I would consider a used car. If you have the occasional need to haul or tow, an SUV might work with a trailer. And don't trade it in at a dealer, sell it on craigslist. Also, your mechanic might know someone who is looking for a truck.

[autoxer]

If you aren't using the truck to actually make money, then you probably don't 'need' a truck. Think about how often you are using the trucks real capabilities. If you are moving other peoples stuff more than you are moving you own stuff, then you probably don't need a truck. I know it can be tough to let go, I had a couple trucks, but the vehicle isn't your identity. You can rent a truck for $20 at Home Depot for the times that you really need to haul something, and then you don't have to worry about scratching the paint on your fancy truck.

Although not very exciting, I've realized that a compact wagon meets 99% of my needs. It fits two child seats, has roof rails that I have strapped furniture to, seats fold down to fit larger things, like 2x4's & a half sheet of plywood and it gets twice the gas mileage of a pick up truck.

[Fishindude77]

Just another comment.
I'm a truck guy too, always have had one and probably always will, but if I was being perfectly honest with myself I don't truly NEED a truck. 90% Of the time I'm driving around with an empty bed or very little in the back.

Not going to change my ways, as I pay cash for vehicles and can afford it, but truth is I could drive a car every day and rent or borrow a truck on those occasions when I need to haul something too big to fit in a hatchback or trunk. Would save myself a ton of money by going that route.

A lot of these "needs" that get us in financial trouble are only perceived.

[bruce101]

All great advise. I need a truck. We already have a paid off car that's my wife's. With our budget I can do the 800 a month for a year and get a decent paid off truck. We already have a emergency savings too. I guess I'll see how much I can get for my current truck.

[Fishindude77]

My advice. Sell the truck and do best you can. If you owe a balance after that (which you most likely will), take a note with the bank and pay it off quick as you can.

Forget the $10K truck, you don't need that either. Find yourself a $2K or less car / truck and make that do until you get the note paid off.

After that, save your money and pay cash for your next vehicle. There are many decent vehicles available for under $5K. Might not be exactly what you want, and may hurt your ego a little bit at first, but there is no shame in driving an older used vehicle. Take comfort in the fact that yours will be paid for while your friends driving the fancy new rigs will likely never own theirs.

So you have to do some maintenance or repair? Big deal, you can do some of that for what you have saved on payments, interest and insurance and still come out way ahead.

Another note. We guys like our trucks, but they are much more expensive than cars, plus generally drink more gas. You can't get much of a truck for $5K, but will have lots of decent cars to choose from.

[bruce101]

I was saying if I were to trade it in on a cheap 10k truck. But then I was thinking if I spend 10k on a truck and lets say I had 2k negative that puts me at 12k. Instead I put that 12k on my current truck. Refinance so the payments drop and then I have a good truck that will last me 10+ years. Its a toyota tacoma and I know they will last.

I'm only thinking about this because if I buy a 10k truck Most all of them are over a 100 thousand miles. So after its paid off it might not last that long maybe 3-4 years. Plus trucks at this price are usually not double cabs and we need a back seat for when we have kids.

Thoughts?

[disneysteve]

The truck is worth 31k

I don't even know what the dealership would give me for it.

You said the truck is worth 31K.

How much a dealership would give you is irrelevant. You aren't trading it in. You're selling it.

[bruce101]

its nerve racking. I don't even know what the dealership would give me for it. We love the truck and want to keep it but it keeps me up at night thinking of how much it costs. I could keep making the payments but will take years to pay off.

[disneysteve]

I make 3600 a month. minimum payment is 510

You are correct. You can't afford the truck.

Your car payment shouldn't exceed 10% of your monthly income for no more than 36 months. You are way beyond those guidelines.

Pay $800/month for 3 more months. That will get you even on value vs. loan balance. Then sell it. Then buy a "new" vehicle that meets the 10%/36 month guidelines.

[bruce101]

I make 3600 a month. minimum payment is 510 but I pay 800. She doesn't want me buying a hunk of junk but at this time I could care less.