Is this a stupid idea?

I agree on a level, however, when trying look at ways to avoid making a worse move, sometimes a lesser worse move might be something to consider.

 

Yeah I don't like the 401k idea at all.

 

Again, thanks for the opinions. I’ve got a pension (state) and a 403 but I nottouching either one till I’m at least 65. I don’t think I can refinance a refinance but I guess I can look into it. Just for S and G’s I may have a dealer give it a look and see what the real life trade in offer would be.

I’m not sure what I originally put in but those of you who said I was overestimating things seem to be right, I just checked again and KBB is around $14-15,000

 

1.9% is cheap money on a used auto loan...I'd milk that for as long as I could. Keep the truck, cancel the cable, put the money you spend on cable in savings. When you have an nice emergency fund and 3+ months of living expenses start moving some money into other investments (stock/mutual funds).

 

OP....going debt free is a great idea....but I don't get the impression that this truck loan is your only debt? If it isn't your only debt, then I would try to get rid of any higher interest debt long before I got rid of the truck loan.
1) if you '09 is mostly trouble free, then you have a mostly "known" entity in regards ownership costs. Any new to you used vehicle introduces unknown risk into your out of pocket costs of ownership.
2) $230/month seems like a lot to you...but, at only 1.9% interest, you are using almost free money on it. If you refinanced that loan recently, then no purpose in refinancing...but if you refinanced it over a year ago, it might be a good idea to at least look at current rate/term available and drop your payments (1.9% is quite good on an 8 year old vehicle!)
3) you don't say if the wife situation is short term or permanent. If she and/or you can put in a couple of extra hours a week or pick up a p/t at Starbucks or something, you are likely only looking at trying to get 2-5 hours/week more pay to make a $230/month payment. Might be worth it to stay with a vehicle that you know vs. the risk I noted in 1) above.
4) I love Subarus too...have owned 2. But, to find one under $10,000 that is in as good a shape with as low miles as what you currently driving may be optimistic.
5) bottom line, I would try to sweat it out and keep the truck, get rid of higher interest debt, pick up a few hours or whatever to ease the short term pain (2 years...is nothing at all in the grand scheme).
Best of luck to you!

 

I doubt that anyone in that much of a financial pinch is going to find a bank to refinance a used car loan on a nearly 10 year old vehicle with 100000+ miles. And realsitically, even if you could find one to do it how much are you going to save per month? Are you going to start a new 5 or 6 year term? Plus, I suspect any fees or charges would eat or exceed any savings.

Do everything you can to get out of debt. Sell the truck. Drop even the basic cable. Pack a bag lunch. Save every penny you can. Don't box yourself in saying "I'd only consider a Subaru..." Beggars can't be choosers, my friend. Find a reliable Civic or Corolla for $5,000 and enjoy the low insurance and good gas mileage. Like others have said, your current situation is temporary... but i hate to add, it could get worse. So having some savings is more important now than ever.

Sorry if this sounds harsh, but it's the truth you need to consider. Good luck with the situation. Hopefully things will turn around soon and you'll be back in a position to breathe easier.

 

agreed...NEVER touch touch your retirement except for a medical emergency....and only that after you have tapped everything else.

 

Post this in bogleheads.org with your full financial picture and you will receive top notch answer from financially savy individuals.

 

That site is great, I wish I had found it sooner than I did.

 

Not always true. I pulled about $40,000 from my 401k a few years back to purchase an income property. That property has appreciated nearly $125,000 and it provides positive cash flow every month...I would have never seen that level of gains from my 401k over such a short period of time. Your 401k is an investment and if you pull money it should be used for another investment or an emergency.

 

Me too man. Been on it for a year or so, wish I was a member in my twenties!

 

I just refinanced the fiancés Altima. Was at like a 5 percent interest rate with a 300 dollar payment. Went to Houston federal credit union and we owed 6000 on it. Refinanced it at a 1.9 rate and the payment is only like 100 bucks

 

How did it drop $200 per month, did you extend the loan time as well?

 

If you know the vehicle and know it will be reliable, I'd suggest keeping it. While exciting to get something else, once you sell/buy something else, you will end up with the unknown of new vehicle's reliability/issues. That is a big risk, since it doesn't sound like you could handle a 3,4, or 5k dollar repair. Agreed with others, trim all other expenses to the bone. Pickup extra $$ as you can. Refi probably won't be a great option, since getting it much lower will only extend your term, and you will reset the amortization of the loan, so you will be paying interest heavy for first year or two. I have been in your shoes, and have since gotten out. I will never go back there. It is wise of you to seek input and realize your current state. Don't loose hope, you can do it. The grass IS greener on the other side.

 

Just for comparison, my cousin has a 2009 PreRunner AC TRD OR with 120K on it. He toyed around the idea of selling it or trading it in for a newer one. CarMax was willing to give him $15K for it. That was a year and a half ago. It's still fairly low mileage with 132K on it now. It's only booking for $11-13K now so even though yours has lower miles, I think $17K as a trade in is very optimistic unless it's a DC and 4x4.

 

Yeah. Not planning on getting rid of the car. Just want to free up some extra money each month. We plan to pay it off faster. Just helps knowing that the payment ain't so high

 

You place too much emphasis on others opinions. This is a bad idea esp on an enthusiast forum.

Look at what you have with an honest eye and then decide what works for YOU.

 

You woukd be saving money if times are tough. Seems like a smart decision to me. Then can always get another one years down road. Sacrifices are smart

 

hadn't read the whole thread but getting rid of cable has to save $100/mo.

 

Cancel cable and any other unnecessary expenses, get a second job until you're back on your feet, keep the truck...