This past month was kind of expensive for truck repairs. $500 at the start of the month for a new radiator. $1,500 at the end of the month for plugs, wires, intake gaskets, MAF sensor, more hoses than you can shake a stick at! For the moment, the truck is running like new, with 279,000 miles on it.
I've about decided it is time to trade in. I have wanted a 4 door 4 wheel drive Tacoma for quite a while. Looking at the pricing I am probably looking at $32-35k for one new. My intention had been to save up and pay cash, but I am now strongly considering a car loan (I have loved the last 12 years with out a car loan and the last 4 years debt free).
The conflict is the fact that I have not put anything into the IRA this year. Last year I maxed out the $5,500 limit. Additionally the roof does NOT leak, but it could be argued I need a new roof $7k. Also the furnace / AC WORKS but is an old unit, $5k. I've got about $28k in the bank at the moment. Also I love my job, but at the point I crossed the $30k mark in savings, I consider that less of an emergency fund and more a go to hell fund (I am not the least bit interested in quitting or finding another line of employment, but cash does provide a nice sense of security).
So the ultimate question is what is the most reasonable path forward?
1) Max the IRA, get the new truck on loan, keep saving?
2) Max the IRA, keep driving the truck till the wheels fall off, keep saving?
3) Pass the IRA this year get the truck for cash middle of next year?
4) Put less than max in the IRA, get the new truck, keep saving?
5) Some other solution I have not considered yet?
There is a separate argument for want vs need vs utility for purchasing a new 4x4 truck. I could get a $15k car new for cash tomorrow if I wanted, but I don't. I could get a used truck, but I am in it for the long haul (as I stated 279,000 on my current truck) and everyone says "Toyota's hold their value" so I am not sure about how deep of a discount I can get for used. As for the 4x4 that would knock $5k off the price to go with out. I might only NEED once or twice a year, but it would be a nice utility, though something else to break too.
I've about decided it is time to trade in. I have wanted a 4 door 4 wheel drive Tacoma for quite a while. Looking at the pricing I am probably looking at $32-35k for one new. My intention had been to save up and pay cash, but I am now strongly considering a car loan (I have loved the last 12 years with out a car loan and the last 4 years debt free).
The conflict is the fact that I have not put anything into the IRA this year. Last year I maxed out the $5,500 limit. Additionally the roof does NOT leak, but it could be argued I need a new roof $7k. Also the furnace / AC WORKS but is an old unit, $5k. I've got about $28k in the bank at the moment. Also I love my job, but at the point I crossed the $30k mark in savings, I consider that less of an emergency fund and more a go to hell fund (I am not the least bit interested in quitting or finding another line of employment, but cash does provide a nice sense of security).
So the ultimate question is what is the most reasonable path forward?
1) Max the IRA, get the new truck on loan, keep saving?
2) Max the IRA, keep driving the truck till the wheels fall off, keep saving?
3) Pass the IRA this year get the truck for cash middle of next year?
4) Put less than max in the IRA, get the new truck, keep saving?
5) Some other solution I have not considered yet?
There is a separate argument for want vs need vs utility for purchasing a new 4x4 truck. I could get a $15k car new for cash tomorrow if I wanted, but I don't. I could get a used truck, but I am in it for the long haul (as I stated 279,000 on my current truck) and everyone says "Toyota's hold their value" so I am not sure about how deep of a discount I can get for used. As for the 4x4 that would knock $5k off the price to go with out. I might only NEED once or twice a year, but it would be a nice utility, though something else to break too.
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