When you lend your car/truck to a family or friend ....

Rental cars are cheap nowadays. If folk can afford airfare, travel and dine out, they can afford a rental car.

 

This!
If I can't pay cash for it,, I don't borrow and have the same requirement.
And the next time I need a safe moved, or a friend does,,, we/I are hiring someone, I am shit full of that goat-rope'n exercise.

 

i'm not really in what i would consider a good financial position. i'm still paying on the truck.

but it's also why i specifically keep two vehicles at all times.

earlier in the past year, my mom had a lapse of judgement and didn't see some stopped traffic. the incident totaled her vehicle--but also the only incident on her record in 30-some years. i loaned her the truck for 4 months and used my spare vehicle for the time.

because in the end, i value my family and friends more than i value my vehicles--that's the whole point of having full coverage insurance. and if at any point, i value my vehicles more than i value a person, it's already likely that i choose to avoid associating with that person.

 

I am not 100% sure if I am in a good financial position? But I have my staff working hard to find out.

 

Lemme see this is an easy one……no.

 

Moved my 3000 sf warehouse Dec 2023.Helped my sister move last summer, moved my packed storage space (300sf) two weeks ago and helped my nephew and his family move last week... 56 and still able so f#ck it... its good workout and family first

 

If you're paying cash for vehicles you're losing money.

If I had $50K in cash and invested it in a CD for 5 years at 5% interest it would earn me $13,800
If I borrow $50K and make payments on it for 5 years at 5% interest it will cost me $6600 in interest. If I can get one of the 2% loans or if I pay it off early even less. It would cost me over $7,000 more to pay cash.

I do like to pay enough down so that the truck is never upside down on value, but I always finance most of it even though I could pay cash.

My '07 Tacoma hasn't been in my driveway for nearly 2 months. My son hit a deer about 6 weeks ago and drove it while his car was being repaired. My daughters Subaru needs a new clutch and she came over to pick it up 30 minutes after my son brought it back. But my 17 year old granddaughter has been driving it for the last 2 weeks. She has claimed dibs on the truck and wants it when I die or stop driving it. It takes 2+ weeks to get an appointment at a good local garage. They are supposed to put the clutch in next week so I should get it back.

 

Nope sorry,Don't be mad

 

Doing something for your Mom is way different than other "relatives and friends" !!

 

Those 2% loans seem to be a thing of the past. Rates are awful now.

 

You completely missed his point.

 

I would never loan any of my vehicles. I keep my cars in pristine condition and I would be PISSED if they messed it up. I know many people that cannot drive a Prius, one of the smallest cars on the road, without running into something. I cannot imagine them trying to navigate my truck and not hitting, bumping or scratching it. It's easier to say no and if they don't understand then that is their issue. I might offer to drive it for them if I have the time.

 

This thread is too funny, my 2022 TRD Sport 6MT has been lent out more than all of my other vehicles combined; brother, son, daughter, son-in-law, cousin, friends, they've all borrowed it upon occasion.

 

I’ll let someone borrow the truck if they really need help, but I’m driving lol

 

I would wonder what happened to their vehicle that they needed to borrow mine?

I don't loan things I can't afford to lose.

 

I'm ONLY the person who's driving MY truck or ANY other vehicles belongs to me.
Also applied to my tools, my wife, my rifles and my cats. Period.
end of transmission.

 

Interesting thought here. How does the math work out if one were to pay the car off in cash then invest what would have been the monthly payments?

 

You cannot invest $40k that you used to pay off the truck ... it is gone. Also, if the truck is totaled and they pay off less than fair value, you lost that difference.

 

Not fkn happening. Had 2 bad experiences with 2 different friends borrowing my Camaro I had as a teenager. One promised he would be 10 minutes and was gone an hour..mind you this is before cell phones and beepers so I couldn't call him to find out what happened. Turns out he was trying to show off like it was his. Another one did a holeshot and I found out the next night, he tried denying it even in front of the guy who saw him do it.

I can count on one hand the times my wife has driven my truck in 13 years..she's an excellent driver and owned a 96 extended cab. She always says she doesn't know how my radio works so I set it on her station and volume, and beg her not to mess around with the other controls. She never listens, then I have to figure it out and she gets mad when I ask her what she pushed.

Add to the list of requirements..ROLL UP THE WINDOWS AND LOCK THE FUCKING DOORS! The other thing she never does and she used to work in a bad area on top of it all.

 

You are wrong on how interest works. If the alternative to taking on a 5% loan, is investing it at 5% ... then you break even whether you invest or pay it. But you are actually worse off investing it.

For ease of explanation, I'll round the monthly loan payment to $1K and loan interest to $7K.

The loan interest ($7K) totals half the interest income route ($14K), because as you make payments, the amount goes down incrementally over the 5 years. The interest on a 50K loan for 5 years at 5%, ends up being equal to a half the original amount $25K compounded at full rate 5%. Same math applies if you invest $1K monthly for same term.

By putting $50K away at 5%, you still have to commit $1K monthly toward the loan. However, if you pay the entire $50K now and avoid $7K interest, you now can invest $1K monthly at 5%, and in 5 years you'll have an investment account that earned $7K interest income.

I.e., you are the same cause path A = $14K interest income - $7K loan interest. Path B is $0 loan interest, but $7K investment interest.

So why are you worse off? Cause path A you have to pay income taxes on $14K of interest income, vs path B you only pay taxes on $7K of interest income.

Also, in the last 1-2 years, it's been possible to secure 5% short term CDs, but not today. Some of the best ones are only 4 points now. So the story today is avoid 5% loan, or invest at 4% for a 1 point deficit and still pay more interest income taxes.

Real financial advice is if you can buy cash, then pay cash. Anybody worried about whether money can be made investing vs incurring loan for an average car value, take the loan cause 'being able' to pay cash, doesn't mean 'can afford' to.