Am I crazy to sell 2013 Tacoma?

Yep, cash is king!!

 

I’m a Dave Ramsey fan and he recommends selling vehicles to pay off debt if:
1. You have more than 50% of your income tied up in vehicles.
2. It will take you longer than two years to pay off all the debt without selling the car.

I think if either two of the above are correct then sell the truck. If the Tacoma is a reasonable vehicle for your income and you can get it paid off quickly then keep the truck if you really like it.

I would say make the decision on what is most important to you.

Although if you sell the Tacoma I’d get something you can pay cash for. Even if its less debt... its almost like what was really the point in selling it if you still have a payment? But thats just me.

Run the numbers and make the best long term decision for you. No vehicle is worth sacrificing responsible long term financial goals.

Good for you for thinking so wisely about it

 

You never sell a 2013. Best Year.

 

+1.

Your truck has new brakes, HGs.. Keep it clean and maintained and it’ll last more than a decade.

Do you have multiple student loans? Consider consolidating them.

Credit card debt- get rid of it first and as quickly as you can. NEVER carry a credit card balance again. If you have multiple cards with balances, find a new card that offers a benefit you want (cash back, miles...) offering a low introductory rate. Consolodate all your credit card debt to that one. Keep two, three cards at most that will give you something when you use them. Did I say NEVER carry a balance?

Edit:
Consider changing the second option in your poll to, “Keep the truck because 1) I might take a bath in selling it 2) it has the potential to reach over 400K miles or more 3) I know what the recent history is, it’s got new Dealer installed HGs (warrantied for xx amount of miles or months which translates into an overall engine warranty for the same amount of time due to what’s required to replace the HGs) and 4) I can do the maintenance myself.

 

I apologize if I missed this but how much do you owe on the current loan? I looked through many of the thoughtful comments here and may have missed it. It seems like there are three separate issues here:

The first issue is the smart comparison between keeping your truck and making the payments or trying to downgrade and get a cheaper vehicle. How that shakes out depends on how much you owe on the current loan, how long you owe on the current loan and then finally what your interest rate is. You should look at this comparison first.

The second issue is your current cash expenditures -- car loans, credit card loans, student loans. Looking at these should really be a separate task than what to do with your current car. A lot of the so-called canned financial experts have generally good rules of thumb about debt. For example, it is pretty irrefutable that credit card debt should be avoided at all costs and paid off first. But you can't take all of that advice as gospel. You can't cut your way to growth and debt is not always bad.

The third larger issue is planning for a sound financial future -- retirement and real estate investing, as you suggest. Here is where you might be able to take advantage of insight from a financial planner (if you don't want to do that yourself -- or you feel you lack the skills). Many offer free one hour consultations and that might be worth your time.

I guess my point is start with the vehicle first. Before you move on to two and three -- I would really think through the first issue. For example, you may owe a lot on the truck or you may owe a reasonable amount. But getting a cheaper car might be more costly -- and you may have to lay out valuable cash out of pocket to boot. So is it better to pay a little over time if you can manage it or pay cash out of pocket for something that may not be as reliable as you need it to be? That would depend on your current loan terms.

 

No doubt, ya'll gott'a make the decision, but things you may want to think about. Not knowing your business, you owe $22K, Intrest on vehicles run between appx. 3% & 10%, depending on how well you get along with your banker. Maybe $4K, probably closer to $5K will be intrest. If you can sell your truck for the $22K, take the $4k to $5k, you won't have to pay in interest, to buy a reasonable little car or truck (nice beater), the other $17K to $18K will make your $32K student loan become a $15 or $14K loan, & all you did was quit driving a 2013 Taco & started driving something a little less, naw a lot less, nice. but also put those Taco payments , that you no longer have, on the student loan & it will also be gone, way earlier than the Taco would have been paid off. If you keep the Taco, & pay it off, appx 4 yrs. down the road you will have a paid off 11 yr. old Taco & a $32K student loan. If you let the Taco go, 3 yrs down the road you will have no 11 yr. old Taco, nor a $32K student loan. Just something else to think about.

 

Sorry sir but student debt doesn't change when all the money that you get from selling the truck goes to the bank that holds the title

 

Sorry, I brain locked, I knew that didn't sound right

 

I wanted to check back in with you guys. I took some time to think about it and ultimately decided to keep the truck. My original plan when I bought this truck was to pay it off as fast as possible and drive it for the next 10+ years. Realistically I can have this thing paid off in the next two years and then I'll be set. Thanks for all the input. Lots of good advice was given.

 

As nice as these trucks are. I recommend prioritizing your financial issue until you get in a more comfortable position. Sell it if you can. Pay your debts. Earn more money and buy what you can afford. Some day you can get another one again

 

Open credit cards

Use those checks they send you to deposit funds into checking account

Pay off student loans

File bankruptcy

Yea I just helped you get around debt that you cant file bankruptcy on

Keep your truck and move on with life

Or....dont be an assbag and pay all your debts as agreed, and not drive a crap.car while you do it

 

Solid advice. Intentionally plan to go bankrupt. That way you won't be able to buy a house ever.