Upside down Negative Equity, possible to upgrade?

I get sick to my stomach thinking about a 5 year loan.

 

I did it. At 0.9% either way I went with the 5 year loan because it ends up being a difference of $350 over the life of the loan from a 3 year term, but the payment is almost half as much. Plus at 5 years I was ahead after about a year, so not much in the way of negative equity. With record low interest rates sometimes it does make sense to put your payments over longer terms.

I also got a deal on a 7 year warranty, so I can be sure the truck will be working for the entire time I'm making payments and for at least 2 years when I'm not paying a loan on it.

What I really don't get is 7 or 8 year loans on $20,000 shit box cars that are worth nothing after 3-4 years yet still the owners still owe over half that amount in debt.

 

It was through a bank of all things. I don't remember which one. The example was a $65k Tahoe for a payment of around $600.

 

Oh my. Can you imagine how in the red that truck is after 5 years at that payment? A good Yukon in Canada is easily $60K OTD. After 5 years you'd still owe $30K and you might be lucky to sell it for $15K .

 

I don't see how anyone would pay on a vehicle for 5 less years than some home loans.

 

Then again the average mortgage in this area is now 35 years. I took out a 20 year and most of my friends think I'm nuts.

 

That's true. I hate having a 30 year mortgage but pretty happy with the rate.

 

I just signed my new rate yesterday for 2.5% over 5 year . That's about as cheap as I'll ever see my payment I'm sure.

 

That's awesome. Do you have an adjustable rate?

 

No, locked in at that for 5 year. Variable rate mortgages here are around 2.3% for me but if the Bank of Canada even raises interest rates a 1/4% then I'll be over the 5 year rate they negotiated with me. So that's no good.

 

Ahhh. Gotcha.

 

This thread has de-escalated into stories about how responsible you are and absurd delusions.

 

White baby!

 

Wait....there's a Tahoe that costs $65k???

 

Only for the last decade.

 

To all the haters, simply put... Fuck you.

To all the positive feedback whether it be good or bad, I appreciate your input, I plan on keeping my 2.7L, I outweighed my needs vs wants and my needs are on top, I have a solid truck with a credible realible engine and I'll plan to drive this fucking truck until the fucking wheels fall off. Cheers to all, even if your an insulting doche bag asshole.

 

Who was hating?

Enjoy the truck. I am pretty sure we have the same trucks, and while I wouldn't cry if I had a V6 4x4, I love my 2.7 DCSB Prerunner.

 

Me too, I just washed it and I was thinking, fuck it may be slow but I love it.

 

Heh.

I have days when I come outside and see it parked there, usually amongst our local trees, and I fall in love all over again. It gets even better when I remember it's mine and I'm about to drive it away. Lol

 

Awesome. I am glad you took the overwhelming advise of keep your truck. Enjoy it.