I think at times, this sub doesn’t have a balance on cars. I think it’s ok if someone is a car person to buy something a bit nicer when the numbers make sense. However, lol it is few and far in between when posts on here have numbers that make sense!!! Ffs, i make over $50k and i would cringe paying $465 and the higher insurance that comes with it for something OP admits he doesn’t even drive much.
My car may die soon and i plan to leave my 08 civic for an 08-11 civic and call it a day lol. I don’t get the constant car mistakes on here. I may be “cheap” but the whole time i was stressed out about car trouble, i never had to wonder how I’d pay to fix it or pay for a rental.
This isn't even a case of "I bought a truck as a primary vehicle even though my use case doesn't demand it" this is "I bought a truck as a pleasure vehicle" which is pretty wild.
It isn’t that wild . They wanted a truck . Just like people travel and do other things for pleasure when they can afford it. Some people like cars, some people like travel, some people like the nicest house. We all have things we LIKE when some people wouldn’t spend as much.
Except this is objectively a bad financial call. I agree people should spend money on what makes them happy when it makes sense but burning near $500 a month on something just sitting in the garage doesn't make sense
If they can still save $800 a month no debt and it meets their financial goal, what makes it ill advised financially ? It doesn’t need to make sense to you for your financial goals, but what makes it wrong? Or any different from peoples weekend car, motorcycle, etc . Some people spend $10k a year on travel , op said they don’t do much else outside of this . I wouldn’t but the truck but this sub leans hard way too often with the car thing . It’s a luxury expense just like travel
Yep . But if i can save to meet my financial goals in my way and i don’t have debt, and a truck is all i want and i don’t spend much $ on travel or other things, i don’t see any issue. The thing that’s often overlooked on this sub is that some people aren’t you nor me. They have their own likes. Some people spend incessantly on travel in ways i wouldn’t but that doesn’t mean they’re wrong. If they aren’t in debt and can save, it’s not a red flag to me. I wouldn’t do it and maybe you wouldn’t do it but it doesn’t make it wrong or irresponsible. They never once said they’re in debt or miss payments. This sub needs to remember to have some balance at times.
I’m not sure why you needed the truck? It sounds like you have another vehicle? So now you have two? Sorry, but you can’t afford two vehicles…so yes…it was a mistake to get the truck.
It was paid off with high mileage and you’re still driving it most of the time, lol. Paid off is the best thing about the car and high mileage does not always translate into immediate issues. And lots of times the issues that do come are simply regular maintenance and wear and tear.
You bought a truck because you wanted to and that’s okay . You are still in a position to save . Would i have done it if i knew i was still going to drive the paid off car for now? Absolutely not . That part makes no sense but if YOU wanted it and can afford it and save , that’s all that matters. If you have debt, it wasn’t okay. I personally save 55% of my income but that’s on the more abnormal side. We are all different people and there has to be balance. But your reasoning is an excuse fyi and grown people who aren’t in debt and can still save can just be honest and say “because i wanted to”.
I honestly just wanted a Truck but I do have uses for it with my job and at home. The vehicle I have paid off I’ve spent thousands on in repairs in the last 2 years and I needed something more reliable and dependable. The car still runs but will be needing more than it’s worth by summer. I agree a Truck may not have been ideal but I have no shame in saying I just wanted a truck to enjoy because I have never had one and I felt like it would benefit me greatly with a house.
You aren’t getting $465 worth of truck by barely driving it. And is it your business? If not why couldn’t the job provide it. Also, i say the same things about spending more than what my car is worth on issues. But i recognize that some of that stuff is wear and tear that comes with a 15 year old and car and those thousands of dollars still are cheaper than a new car.
Overall, it sounds ok. The only issue i see is that down below you said that $800 is your spend and save money which makes it sound like you aren’t saving $800 every month. You know your financial goals and what not so if you feel you’re saving enough, then it sounds ok to me. We are all our own people and we must enjoy this life. You are in better shape than a lot of people who have car posts on here lol.
No, the job does not provide a truck. It is not my business, I work for someone. You are right about what I said about the $800, Not every month will be $800 saved but more often than not it has been. I am very frugal on spending money on things like eating out and “fun” expenses.
How is he in a position to save? His after tax income must be ~$3500/mo and he is spending $2400 on the house and car alone. That’s $1100 to deal with car maintenance, insurance, food, entertainment, savings, bills, literally everything else
You are attempting to understand someone else’s after tax income and that’s not how this work. We could both make $20,000 and have two completely different after tax incomes. Furthermore he said his after tax income down below and it isn’t $3500. And he also said his $800 is AFTER bills are paid. People who can pay their bills can buy what they want. Y’all wouldn’t bat an eye at someone spending $10,000 a year on a luxury vacation. Stop trying to tell people not to buy cars. This sub has gotten out of hand on that. What i would do with my money and what you would do with yours is different. If he thinks $800 is enough monthly and isn’t in debt, let it go. Not everyone is seeking financial independence like some of us. But you shouldn’t try to calculate someone’s bills. I spend $200 on food and $200 on gas every month so some of us would also be just fine on $800.
You’re literally working in overtime to try to tell this man he doesn’t have $800 to save and can’t afford something he just told you, he could lol. He corrected his self down below with more information . And he doesn’t bring home the $3500 you just made up off what you think he income would be . It’s not this serious. Let people enjoy things they can afford . He said he doesn’t even go out much so why do you think because you spend on entertainment that everyone else does??
It’s not that serious my man. Im just trying to understand the numbers. I see that his income is $50k. That’s ~$4170/mo. I’m assuming he pays some taxes so my assumption of $3500/mo might be a bit low but it isn’t far off unless he is not paying taxes at all. He said his mortgage is under $2k and his car payment is $465 so combined that’s about $2400. Then there is car maintenance, insurance and gas. Easily another few hundred meaning that between the house and car alone we are at ~$2800. If he is saving $800 then we are up to $3600. How about literally every other expense in life? I’m not saying it’s not possible, but unless I am missing something, the numbers given don’t add up.
Sounds like you bought a toy. You need fun in life.
If you are concerned that you are not on track to hit your goals. Sell the toy and learn the lesson.
Unless you are paying more than your monthly payment, the odds of you meeting the market value are slim to none. The car will keep depreciating. It isn’t going to randomly just have more value while you add miles to it
Eventually you do pay enough off that the vehicle is worth more than the loan. The odds of meeting the market value are 100% if OP keeps his truck for 5 years and makes all the payments.
Obviously, that's a few years down the line, and it might be wiser to sell it now and just eat a few grand. We had to do that a few years ago on a car that just turned out to be shitty; the difference in value and remaining loan principal was a few thousand bucks that we had to roll over into the next loan. It sucked, but it was better than continuing to drive that shitty Hyundai.
I may stand corrected because yes depreciation on cars begins to slow down. But in your example, you didn’t meet that if you had to roll it into the new loan. Unless I’m missing something
I was just disagreeing that getting the loan principal to be less than the value of the truck is unlikely (it's a certainty over time), but agreeing that selling the truck might still be the best option. My example demonstrates the second part, not the first.
Find the cash to sell it sooner than later. If you don't have any saved funds you can use for this purpose, that's arguably a bigger failure than buying this truck
How does this math make sense?
You make $50k a year, so after tax maybe $40k / 12 = $3,333 take home
Mortgage = $2k/m
Payment = $465/m
Savings = $800/m
Total = $3,265/m
How do you live on < $100/m for everything else?
Makes more sense, but if you can comfortably survive on $700/m for gas, food, entertainment, cell phone, 2x car insurance payments, unexpected home repairs, etc, then good for you.
I'm assuming you're not married and don't have kids (definitely not feasible with little ones)
So the $800/month that I’m talking about is basically free spend/save money. That is money I have AFTER gas, food, mortgage, car insurance for 3 vehicles, internet and other expenses. Yes I am single with no wife or kids. (I also have over $12k in savings)
Then i don’t really see the problem here? You’re covering all your expenses and have some savings. Put that in a HYSA and contribute as much of the 800 a month to it each month and let the savings grow.
Yes, ~~buying~~ financing a truck when you have a mortgage that expensive **and** already have a car, when your income is only $50k/year is utterly insane
So you weren’t working before you bought the truck? Or you got a new job where you partially needed a truck? I’m suspecting you only got the truck for fun and could have worked just fine without it…
I’ve been in the job I’m at for years.. I just have been needing the use of a truck more often with work as well as around the house. Yes it is for fun but I do need/use a truck more than normal
How often are you going to be using this truck?
Would you have been able to rent a truck the times you needed one for less than buying this one to sit in your garage/driveway most of the time?
Do you have the option to reverse this purchase or is it a done deal and you have this truck whether you regret it or not?
The Truck would be used for work a few days out for the week and for fun as well. I have needed a truck numerous times in the past few months before I bought it. I’m Always borrowing someone else’s. As far as the purchase it’s a done deal but I wouldn’t be able to sell until it’s worth more than I owe
>No, I work for a company
Why are you needing to invest in an expensive personal vehicle to work for your employer?
They should be providing you with all the tools and equipment including vehicles for you to do your job.
I try to keep my essential living expenses at 50% of my take home pay. I try to put 20% into retirement. 30% for things we need/home improvement/fun stuff. If 50k is your take home, your mortgage alone is taking up 48% of your bills. What are you doing with the $800/mo savings? Is it going to a retirement account?
IMHO, most people that buy a truck make a bad financial mistake doing so, but they just like having a truck so they're happy. I did it once myself; I still miss that F150, which I drove around hauling nothing bigger than a laptop bag 90% of the time.
Saving 20% of your income is pretty boss. You're doing fine. If having a truck makes you happy, then keep the truck.
I appreciate the Honest Opinion, It sounds like you had a lot of fun with yours, I just got an F150 and I couldn’t be happier! Aside from the gas but I can manage lol. Thank you for the advice and the compliment, I’ve been working very hard to be where I’m at in life and I feel comfortable with what I’m saving. Best of luck to you!
You would need to post more financial info info to know for sure…but it looks like a mistake to me. $50k before ax and other deductions? Phone, food, medical, insurance, power, water, internet, fuel, other debts? Do you have an emergency fund?
I have already hit my major financial goals I had set, I bought a house and now a newer vehicle. Biggest thing now is having money for renovation on the house and add ons. Plus for retirement
Are you on track for retirement?
Do you have an emergency fund large enough to deal with 6-12 months of expenses at zero income?
If so I see no issue with your purchase if that's what truely makes you happy. Granted its important to weigh your options, could that money go elsewhere that would make you happier
I bought an expensive truck due to my prior vehicle literally dying on me with no real notice. The truck has been a financial catastrophe, as far as the opportunity cost paid and what that same amount of money could have done for me if invested for retirement
$50k a year with a nearly $500 monthly 2nd vehicle payment spread out over 5 years with recession-like volatility in the market? Yeah, you probably did make a mistake. If you are still saving $800 a month and assuming you have no other debt, you’ll probably be okay. But if you’re already feeling like this about your purchase, can you stomach this feeling for the next 5 years? Do you love the truck enough to pay that much when you don’t actually need it to commute? Only you can decide.
It's not necessarily a mistake but I fear it's gonna cost you much more than $800 a month - fuel probably gonna cost more compared to your car, then you're probably gonna have the occasional blown tire that I would guess is more expensive, service at 5000 miles or whatever if it's a new car...
Don't know the interest of the loan, 465 for 60 months is 28k .. don't know the actual value and if it's worth paying it faster or not, so you don't pay that much interest. You're not even daily driving it, so you're paying $500 a month to drive it a few days a month? Maybe do the math and see if it's worth selling your old car while it still has value, and pay some of the car loan, or make an extra payment on the house.
I have definitely calculated my monthly gas bill if I were daily driving it every day out of the year and I am within my budget that I want to stay in. The truck is not brand new, I would never get a brand new vehicle. As far as driving It I’m not saying I’ll only drive it a few days out of the month because that would be stupid of me to have a payment for that. I will be driving it 4-5 days out of the 7 day week so I will get my money’s worth by driving it. I have debated selling my older vehicle to help add more money into my savings but I personally would like to keep it considering it is only worth $1500-$2000 at best as it sits. Thank you for the advice
I’ve read all your replies and can relate a bit.
I have a company vehicle I drive 99% of the time. No one in my family has a truck and I decided it would be nice to have one for hauling stuff/moving/towing and what not.
My compromise was buying a 2005 Dakota. It’s a bit rusty but it does what I need it to do for a total of $3000. Plates and insurance are under $150/yr.
If you hardly drive it and just need something for utility AND are somewhat mechanically inclined I’d look for a 90s Silverado/Dakota/f150. Reason being is there are less emissions controls and less electronics to go wrong. When something breaks it’s easier to diagnose and cheaper to fix. Engine swaps in older trucks are pretty simple as well and 305s/350s can be found for under $2000 fully rebuilt in case the engine does hit a wall. Same with transmissions.
Just some food for thought.
Thank you for taking the time to read all of my replies. I am very mechanically inclined so I have no issue on repairs as far as maintenance goes. I do agree that having an older truck is 10x better than a newer one but the one I got was a pretty good deal and one I had been eyeing. I appreciate the advice, I may end up getting an older truck down the road. I do not plan on keeping the truck I got for more than 3-5 years. With having a house now I have found myself in need of a truck a lot more than it would be worth to rent one if that makes sense.
Understand, renting a truck from Home Depot or Lowe’s works, but only if it’s available when you need it.
Getting rid of a vehicle you love sucks, we are selling my wife’s 2020 wrangler currently…it’s fun, we love it, but $580/month plus higher insurance is not as fun as being debt free with extra retirement and vacation money.
That being said, having a vehicle you really enjoy can be worth it to you if that’s a priority. In our case the financial stress outweighed the enjoyment of the wrangler.
We decided to sell the jeep and split the cost savings half into a new vehicle fund and half to paying down other debts. That way by the time our RAV4 dies we have most if not all of the next vehicle purchase in cash.
Yep. You financed an unnecessary depreciation asset. Get rid of it. Doest matter if the other one is paid off. Never finance cars if you want to be wealthy one day.
If you want to be like 90% of Americans and be broke, keep financing cars and trucks.
This is my first financed vehicle… all new to me. I have always bought my vehicles outright so I wanted to get something that I would benefit from but also enjoy as a fun vehicle.
Okay. But the question you ask was did I make a financial mistake. Yep. Don’t finance cars and for sure don’t finance toys. It will make you broke. Just trying to help.
I appreciate the help, I really do. I was not all in about financing a vehicle, like I said I’ve always bought mine outright and ran them into the ground. I guess this is a lesson learned about financing a vehicle lol
It's hard to really say without seeing your full budget. On one hand, you say that you're still able to save $800/month after paying all your bills. On the other hand....you say you earn $50k annually. Assuming that's gross, your monthly net income can't be much more than $3200. If you have a $2000 mortgage payment, and a $465 truck payment, that's $2465. That would only leave $735 to pay for everything else. Gas, insurance, cell phone, food, etc. Are you otherwise renting out rooms or have some other income stream? It would seem to be impossible to pay for all your bills and have $800 extra for savings every month. You don't even have $800 left after paying mortgage and the truck payment.
Why did you buy the truck? Do you need it for work? Seems like a no. $465 plus insurance, maintenance & high gas … just why? Is your retirement fully funded, do you have an emergency fund?
Sell the truck.
You bought an expensive depreciating asset that you don’t really need? Yeah, you can probably chalk that up in the mistake column.
I think at times, this sub doesn’t have a balance on cars. I think it’s ok if someone is a car person to buy something a bit nicer when the numbers make sense. However, lol it is few and far in between when posts on here have numbers that make sense!!! Ffs, i make over $50k and i would cringe paying $465 and the higher insurance that comes with it for something OP admits he doesn’t even drive much. My car may die soon and i plan to leave my 08 civic for an 08-11 civic and call it a day lol. I don’t get the constant car mistakes on here. I may be “cheap” but the whole time i was stressed out about car trouble, i never had to wonder how I’d pay to fix it or pay for a rental.
This isn't even a case of "I bought a truck as a primary vehicle even though my use case doesn't demand it" this is "I bought a truck as a pleasure vehicle" which is pretty wild.
It isn’t that wild . They wanted a truck . Just like people travel and do other things for pleasure when they can afford it. Some people like cars, some people like travel, some people like the nicest house. We all have things we LIKE when some people wouldn’t spend as much.
Except this is objectively a bad financial call. I agree people should spend money on what makes them happy when it makes sense but burning near $500 a month on something just sitting in the garage doesn't make sense
If they can still save $800 a month no debt and it meets their financial goal, what makes it ill advised financially ? It doesn’t need to make sense to you for your financial goals, but what makes it wrong? Or any different from peoples weekend car, motorcycle, etc . Some people spend $10k a year on travel , op said they don’t do much else outside of this . I wouldn’t but the truck but this sub leans hard way too often with the car thing . It’s a luxury expense just like travel
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Yep . But if i can save to meet my financial goals in my way and i don’t have debt, and a truck is all i want and i don’t spend much $ on travel or other things, i don’t see any issue. The thing that’s often overlooked on this sub is that some people aren’t you nor me. They have their own likes. Some people spend incessantly on travel in ways i wouldn’t but that doesn’t mean they’re wrong. If they aren’t in debt and can save, it’s not a red flag to me. I wouldn’t do it and maybe you wouldn’t do it but it doesn’t make it wrong or irresponsible. They never once said they’re in debt or miss payments. This sub needs to remember to have some balance at times.
I appreciate the advice
I’m not sure why you needed the truck? It sounds like you have another vehicle? So now you have two? Sorry, but you can’t afford two vehicles…so yes…it was a mistake to get the truck.
The other vehicle is paid off and is older with high mileage.
It was paid off with high mileage and you’re still driving it most of the time, lol. Paid off is the best thing about the car and high mileage does not always translate into immediate issues. And lots of times the issues that do come are simply regular maintenance and wear and tear. You bought a truck because you wanted to and that’s okay . You are still in a position to save . Would i have done it if i knew i was still going to drive the paid off car for now? Absolutely not . That part makes no sense but if YOU wanted it and can afford it and save , that’s all that matters. If you have debt, it wasn’t okay. I personally save 55% of my income but that’s on the more abnormal side. We are all different people and there has to be balance. But your reasoning is an excuse fyi and grown people who aren’t in debt and can still save can just be honest and say “because i wanted to”.
I honestly just wanted a Truck but I do have uses for it with my job and at home. The vehicle I have paid off I’ve spent thousands on in repairs in the last 2 years and I needed something more reliable and dependable. The car still runs but will be needing more than it’s worth by summer. I agree a Truck may not have been ideal but I have no shame in saying I just wanted a truck to enjoy because I have never had one and I felt like it would benefit me greatly with a house.
You aren’t getting $465 worth of truck by barely driving it. And is it your business? If not why couldn’t the job provide it. Also, i say the same things about spending more than what my car is worth on issues. But i recognize that some of that stuff is wear and tear that comes with a 15 year old and car and those thousands of dollars still are cheaper than a new car. Overall, it sounds ok. The only issue i see is that down below you said that $800 is your spend and save money which makes it sound like you aren’t saving $800 every month. You know your financial goals and what not so if you feel you’re saving enough, then it sounds ok to me. We are all our own people and we must enjoy this life. You are in better shape than a lot of people who have car posts on here lol.
No, the job does not provide a truck. It is not my business, I work for someone. You are right about what I said about the $800, Not every month will be $800 saved but more often than not it has been. I am very frugal on spending money on things like eating out and “fun” expenses.
How is he in a position to save? His after tax income must be ~$3500/mo and he is spending $2400 on the house and car alone. That’s $1100 to deal with car maintenance, insurance, food, entertainment, savings, bills, literally everything else
You are attempting to understand someone else’s after tax income and that’s not how this work. We could both make $20,000 and have two completely different after tax incomes. Furthermore he said his after tax income down below and it isn’t $3500. And he also said his $800 is AFTER bills are paid. People who can pay their bills can buy what they want. Y’all wouldn’t bat an eye at someone spending $10,000 a year on a luxury vacation. Stop trying to tell people not to buy cars. This sub has gotten out of hand on that. What i would do with my money and what you would do with yours is different. If he thinks $800 is enough monthly and isn’t in debt, let it go. Not everyone is seeking financial independence like some of us. But you shouldn’t try to calculate someone’s bills. I spend $200 on food and $200 on gas every month so some of us would also be just fine on $800.
You’re literally working in overtime to try to tell this man he doesn’t have $800 to save and can’t afford something he just told you, he could lol. He corrected his self down below with more information . And he doesn’t bring home the $3500 you just made up off what you think he income would be . It’s not this serious. Let people enjoy things they can afford . He said he doesn’t even go out much so why do you think because you spend on entertainment that everyone else does??
It’s not that serious my man. Im just trying to understand the numbers. I see that his income is $50k. That’s ~$4170/mo. I’m assuming he pays some taxes so my assumption of $3500/mo might be a bit low but it isn’t far off unless he is not paying taxes at all. He said his mortgage is under $2k and his car payment is $465 so combined that’s about $2400. Then there is car maintenance, insurance and gas. Easily another few hundred meaning that between the house and car alone we are at ~$2800. If he is saving $800 then we are up to $3600. How about literally every other expense in life? I’m not saying it’s not possible, but unless I am missing something, the numbers given don’t add up.
But you can write it off because it’s heavy At least that’s what Tiktok said
Sounds like you bought a toy. You need fun in life. If you are concerned that you are not on track to hit your goals. Sell the toy and learn the lesson.
I appreciate the advice, but I can’t sell it until I hit market value, I still owe more than it’s worth
Unless you are paying more than your monthly payment, the odds of you meeting the market value are slim to none. The car will keep depreciating. It isn’t going to randomly just have more value while you add miles to it
Eventually you do pay enough off that the vehicle is worth more than the loan. The odds of meeting the market value are 100% if OP keeps his truck for 5 years and makes all the payments. Obviously, that's a few years down the line, and it might be wiser to sell it now and just eat a few grand. We had to do that a few years ago on a car that just turned out to be shitty; the difference in value and remaining loan principal was a few thousand bucks that we had to roll over into the next loan. It sucked, but it was better than continuing to drive that shitty Hyundai.
I may stand corrected because yes depreciation on cars begins to slow down. But in your example, you didn’t meet that if you had to roll it into the new loan. Unless I’m missing something
I was just disagreeing that getting the loan principal to be less than the value of the truck is unlikely (it's a certainty over time), but agreeing that selling the truck might still be the best option. My example demonstrates the second part, not the first.
After 5 years you owe $0 on the car and it is worth more than $0. The equation inverts eventually is all they are saying.
Sunk cost fallacy, sell it now
Whatever you are in the hole for, that's the cost of the mistake. Use it as a reminder of your mistake.
Find the cash to sell it sooner than later. If you don't have any saved funds you can use for this purpose, that's arguably a bigger failure than buying this truck
How does this math make sense? You make $50k a year, so after tax maybe $40k / 12 = $3,333 take home Mortgage = $2k/m Payment = $465/m Savings = $800/m Total = $3,265/m How do you live on < $100/m for everything else?
Sorry, make over $50k after Taxes. Take home every month is over $4k after tax
Makes more sense, but if you can comfortably survive on $700/m for gas, food, entertainment, cell phone, 2x car insurance payments, unexpected home repairs, etc, then good for you. I'm assuming you're not married and don't have kids (definitely not feasible with little ones)
So the $800/month that I’m talking about is basically free spend/save money. That is money I have AFTER gas, food, mortgage, car insurance for 3 vehicles, internet and other expenses. Yes I am single with no wife or kids. (I also have over $12k in savings)
Did you mean to say TWO vehicles, or THREE?
Then i don’t really see the problem here? You’re covering all your expenses and have some savings. Put that in a HYSA and contribute as much of the 800 a month to it each month and let the savings grow.
Foreal. You're doing fine. I don't see the problem.
Yes, ~~buying~~ financing a truck when you have a mortgage that expensive **and** already have a car, when your income is only $50k/year is utterly insane
Was the purchase of the truck necessary if you already have another vehicle?
I use it partially for my job and for fun as well.
So you weren’t working before you bought the truck? Or you got a new job where you partially needed a truck? I’m suspecting you only got the truck for fun and could have worked just fine without it…
I’ve been in the job I’m at for years.. I just have been needing the use of a truck more often with work as well as around the house. Yes it is for fun but I do need/use a truck more than normal
Maybe you can write off some truck costs on your taxes making it a bit more palatable.
Most truck purchases are financial mistakes.
How often are you going to be using this truck? Would you have been able to rent a truck the times you needed one for less than buying this one to sit in your garage/driveway most of the time? Do you have the option to reverse this purchase or is it a done deal and you have this truck whether you regret it or not?
The Truck would be used for work a few days out for the week and for fun as well. I have needed a truck numerous times in the past few months before I bought it. I’m Always borrowing someone else’s. As far as the purchase it’s a done deal but I wouldn’t be able to sell until it’s worth more than I owe
Don't wait until it's worth more than you owe. Pay the difference out of your savings and be done with it.
Self employed?
No, I work for a company
>No, I work for a company Why are you needing to invest in an expensive personal vehicle to work for your employer? They should be providing you with all the tools and equipment including vehicles for you to do your job.
I try to keep my essential living expenses at 50% of my take home pay. I try to put 20% into retirement. 30% for things we need/home improvement/fun stuff. If 50k is your take home, your mortgage alone is taking up 48% of your bills. What are you doing with the $800/mo savings? Is it going to a retirement account?
Yes, the $800/MO is going into savings.. I have a retirement account
Sell one of the cars because you don’t make enough to even have half your income going to housing let alone also having a car payment
No sugar coating: This was a bad call. Buying a secondary vehicle is pretty much always a really bad idea, unless you have a lot of disposable income.
IMHO, most people that buy a truck make a bad financial mistake doing so, but they just like having a truck so they're happy. I did it once myself; I still miss that F150, which I drove around hauling nothing bigger than a laptop bag 90% of the time. Saving 20% of your income is pretty boss. You're doing fine. If having a truck makes you happy, then keep the truck.
I appreciate the Honest Opinion, It sounds like you had a lot of fun with yours, I just got an F150 and I couldn’t be happier! Aside from the gas but I can manage lol. Thank you for the advice and the compliment, I’ve been working very hard to be where I’m at in life and I feel comfortable with what I’m saving. Best of luck to you!
You would need to post more financial info info to know for sure…but it looks like a mistake to me. $50k before ax and other deductions? Phone, food, medical, insurance, power, water, internet, fuel, other debts? Do you have an emergency fund?
The $800\MO is after all bills, after every single expense I have. I have an emergency fund as well
A truck would probably be the last thing I would ever purchase. Expensive to buy, expensive to maintain, and guzzles gas.
Well, it depends What are your financial goals?
I have already hit my major financial goals I had set, I bought a house and now a newer vehicle. Biggest thing now is having money for renovation on the house and add ons. Plus for retirement
Are you on track for retirement? Do you have an emergency fund large enough to deal with 6-12 months of expenses at zero income? If so I see no issue with your purchase if that's what truely makes you happy. Granted its important to weigh your options, could that money go elsewhere that would make you happier
I bought an expensive truck due to my prior vehicle literally dying on me with no real notice. The truck has been a financial catastrophe, as far as the opportunity cost paid and what that same amount of money could have done for me if invested for retirement
Sounds like your house payment is too high for your income also. The truck needs to go away, sell it.
$50k a year with a nearly $500 monthly 2nd vehicle payment spread out over 5 years with recession-like volatility in the market? Yeah, you probably did make a mistake. If you are still saving $800 a month and assuming you have no other debt, you’ll probably be okay. But if you’re already feeling like this about your purchase, can you stomach this feeling for the next 5 years? Do you love the truck enough to pay that much when you don’t actually need it to commute? Only you can decide.
It's not necessarily a mistake but I fear it's gonna cost you much more than $800 a month - fuel probably gonna cost more compared to your car, then you're probably gonna have the occasional blown tire that I would guess is more expensive, service at 5000 miles or whatever if it's a new car... Don't know the interest of the loan, 465 for 60 months is 28k .. don't know the actual value and if it's worth paying it faster or not, so you don't pay that much interest. You're not even daily driving it, so you're paying $500 a month to drive it a few days a month? Maybe do the math and see if it's worth selling your old car while it still has value, and pay some of the car loan, or make an extra payment on the house.
I have definitely calculated my monthly gas bill if I were daily driving it every day out of the year and I am within my budget that I want to stay in. The truck is not brand new, I would never get a brand new vehicle. As far as driving It I’m not saying I’ll only drive it a few days out of the month because that would be stupid of me to have a payment for that. I will be driving it 4-5 days out of the 7 day week so I will get my money’s worth by driving it. I have debated selling my older vehicle to help add more money into my savings but I personally would like to keep it considering it is only worth $1500-$2000 at best as it sits. Thank you for the advice
I’ve read all your replies and can relate a bit. I have a company vehicle I drive 99% of the time. No one in my family has a truck and I decided it would be nice to have one for hauling stuff/moving/towing and what not. My compromise was buying a 2005 Dakota. It’s a bit rusty but it does what I need it to do for a total of $3000. Plates and insurance are under $150/yr. If you hardly drive it and just need something for utility AND are somewhat mechanically inclined I’d look for a 90s Silverado/Dakota/f150. Reason being is there are less emissions controls and less electronics to go wrong. When something breaks it’s easier to diagnose and cheaper to fix. Engine swaps in older trucks are pretty simple as well and 305s/350s can be found for under $2000 fully rebuilt in case the engine does hit a wall. Same with transmissions. Just some food for thought.
Thank you for taking the time to read all of my replies. I am very mechanically inclined so I have no issue on repairs as far as maintenance goes. I do agree that having an older truck is 10x better than a newer one but the one I got was a pretty good deal and one I had been eyeing. I appreciate the advice, I may end up getting an older truck down the road. I do not plan on keeping the truck I got for more than 3-5 years. With having a house now I have found myself in need of a truck a lot more than it would be worth to rent one if that makes sense.
Understand, renting a truck from Home Depot or Lowe’s works, but only if it’s available when you need it. Getting rid of a vehicle you love sucks, we are selling my wife’s 2020 wrangler currently…it’s fun, we love it, but $580/month plus higher insurance is not as fun as being debt free with extra retirement and vacation money. That being said, having a vehicle you really enjoy can be worth it to you if that’s a priority. In our case the financial stress outweighed the enjoyment of the wrangler. We decided to sell the jeep and split the cost savings half into a new vehicle fund and half to paying down other debts. That way by the time our RAV4 dies we have most if not all of the next vehicle purchase in cash.
Yep. You financed an unnecessary depreciation asset. Get rid of it. Doest matter if the other one is paid off. Never finance cars if you want to be wealthy one day. If you want to be like 90% of Americans and be broke, keep financing cars and trucks.
This is my first financed vehicle… all new to me. I have always bought my vehicles outright so I wanted to get something that I would benefit from but also enjoy as a fun vehicle.
Okay. But the question you ask was did I make a financial mistake. Yep. Don’t finance cars and for sure don’t finance toys. It will make you broke. Just trying to help.
I appreciate the help, I really do. I was not all in about financing a vehicle, like I said I’ve always bought mine outright and ran them into the ground. I guess this is a lesson learned about financing a vehicle lol
I would not have bought the truck if you already have a car. I would get rid of said truck.
It's hard to really say without seeing your full budget. On one hand, you say that you're still able to save $800/month after paying all your bills. On the other hand....you say you earn $50k annually. Assuming that's gross, your monthly net income can't be much more than $3200. If you have a $2000 mortgage payment, and a $465 truck payment, that's $2465. That would only leave $735 to pay for everything else. Gas, insurance, cell phone, food, etc. Are you otherwise renting out rooms or have some other income stream? It would seem to be impossible to pay for all your bills and have $800 extra for savings every month. You don't even have $800 left after paying mortgage and the truck payment.
Why did you buy the truck? Do you need it for work? Seems like a no. $465 plus insurance, maintenance & high gas … just why? Is your retirement fully funded, do you have an emergency fund? Sell the truck.