Should I sell my tacoma? Need advice!

Mine are high as well ... just do not know exactly what they are. But I pay off as soon as I use them. CC is preferred for rental cars and hotels so I keep them. Debit cards are not preferred because of the "limited to what is in the account".

I pay cash for almost everything in my daily life. If I cannot, I must change what I am doing. The exception is my Tacoma but my Corolla does not go offroad.

Sorry if this sounds "ivory tower", but debt is slavery.

 

lol, who has time for a SECOND job?!? i barely have enough time for the first one!

 

110 helpful comments from the CrossPost https://www.reddit.com/r/ToyotaTacoma/comments/1hy49k1/should_i_sell_my_2020_trd_pro_in_army_green/

 

The couple of credit cards I have with balances range from 19% to 24%.

Giving creditors $15-$25 a month ticks me off...the sooner I pay off...within next three months, the better.

Wife helped me to enforce a budget/spend plan and I have to stay true to it.

Saving for nice-to-have-things for my truck is more rewarding when I wait-to-save.

 

One of the few good uses for credit card interest rates is when you are trying to pay them off. Some who want to pay them off honestly will "transfer the balance" to a card that offers 2% interest for the first year, transferring from an account with 24%. But such tricks can bite you because of "transfer fees".

If one just wants the debt gone, get a second job and make the debt go away ... that has no hidden catches that card companies can use against you.

 

Thanks for that!

I'm fortunate that I have a military retirement check on top of my Boeing pay.

The Boeing pay goes into an account my wife manages...making monthly saving folders for our annual bills: Property/Fed taxes/HOA dues/Mint Plan, etc.

I'm able to pay mortgage/utilities/insurance/credit cards with my military pay.

I'm almost there with payoffs!

Then I can continue saving for DB Tonneau cover...then wheels/tires! (I'm contemplating Bilsteins 5100s but will probably change my mind)

It's a good feeling to have...attaining freedom from Creditors and paying off balances before next billing cycle. (Have the money saved first)

 

She sounds like a savior. Smart, patient and just enough controller that is not "dictator". She is a keeper, my opinion.

That first night after you pay all the cards off will be an easy sleep and the next morning will be all-the-brighter.

 

Yes, she is my Money Manager Guide! lol

On top of the annual bills folders, she's putting what's left over into High Yield Savings Account for our retirement fund. Bonus!

She also wants me to take better care of my liver...my numbers were borderline in Oct so she's holding me to the fire.

She still reverts to saying, "You're a grown-ass man, if you don't care, why should I?"

She's a ball-buster...but definitely a keeper.

 

Ummm, the HRV has been out since around 2016 here..unless you are thinking maybe of a redesign of the vehicle?

 

Tough one. Moneywise it makes sense to kill the CC debt of course, I'm surmising your rate on that is more than the 3.9 for your truck. Can you pick up overtime at work or a side hustle?

Think too that you probably won't find another one if you sell this one..just a side thing to consider.

One thing I noticed, why do you need more room in the backseat? Family or otherwise? If otherwise, don't let that factor in. I have a single cab truck and it's going nowhere because I don't have a need for another row of seats..people can make fun of it but TBSS it ain't their truck.

 

I have one credit card and I think it's 8 pct..not 100% sure as I don't carry a balance. I use it to pay for things such as concert tickets when I do that, and pay it off as soon as it arrives in full. I haven't carried CC debt in well over 10 yrs and haven't had a car loan in 7, my wife's we just paid off last year but it was a small enough one that my side job paid for it. We've always paid more on the mortgage even in the lean years 21 yrs ago of first moving in and needing to rehab the place, and over time have slammed more down on it. Down to only 50K on it which we could do in 25 months but we are planning to rid ourselves of it this year if an inheritance or personal injury case get finished..I've said soon as the money is in the account we will call the bank, get the payoff, sign the check and drop it in the mailbox..then go have a nice dinner out.

 

I'm guessing no second or passive income for OP. CC debt means you are living beyond your means. I understand really wanting something and not being able to afford it. The temptation is real I told myself about 5 years ago that I no longer wanted payments or financing. All my cars are bought in cash. If that car is overbudget, I won't buy it...and I LOVE cars. The only thing I am currently financing is my house. I also live in the Bay Area. It's very easy to let debt get out of control if you are not careful with your planning.

I agree with some of the early replies above: Sell the TRD Pro, pay off CC whole, use the balance on an HRV Sport AWD downpayment. I would look a a Certified Pre-owned. They generally have 40k miles or less and have pretty good warranties. A CPO HRV Sport AWD in the Bay Area is around $23k-$24k. With $8k down, your payment would fall around $350/mo for 60 mo or around $400/mo for 48 mo. It's a much more responsible way to go IMO. I have bought two cars from Lexus CPO and both turned out good. You do not put hardly any miles on your car so buying from brand new may not make sense.

If it were me, I would just buy a used Toyota or Honda for around $15k with slightly higher miles since you hardly drive anyways and minimize your car payments even further.

 

That could be true re beyond means, or perhaps a lesson was learned and is now being addressed..or maybe something else, who knows. FWIW I saw up close with my sister even when she was much younger, she has always been a shopaholic whether she needs to or not.

I find debt is a thing that can nickel and dime one to death easily if not wisely managed.

 

Totally agree. I saw this happen with my Brother many years ago until he married a wise Woman.

 

My sis was 12K in cc debt before she was 21..for going out to dinner and shopping. She had a closet that was about 8 feet, stuffed so you couldn't fit one more wire hanger. Half the stuff still had tags..she did a consolidation loan and paid that off but never really changed her habits. Every couple of years buys another car because she gets bored, still goes to dinner all the time, etc..to the point of getting a foreclosure about 10 yrs ago.

 

Houses are reasonable debt, but pay it off early with even as little as an extra $100/month. Car payments just suck, but at this point in my life I CAN pay off the truck and would rather have that money liquid in case if bad things. I may change my mind and may discard that debt ... always a question in my mind.

Businesses take debt short term when expanding inventory because they use cash-flow for salaries, rent, other day-to-day expenses. But they manage that and have collateral to get better loan terms than credit cards.

 

Agreed about the Home Mortgage being reasonable debt/paying additional hundred bucks/month.

I'll tolerate (have done with my current 2021 TRD Sport) a Car Loan if the interest rate is phenomenal (1.8%) with no penalty for early payoff.

I've paid additional funds towards the car loan ($50) but not every month.

There really needs to be a game plan set up with goals/set allowances for each luxury expenditure...must pays must be done first!

The happiness when goal is completed is worth the effort!

 

I was 11 years free of car loan before I moved to AZ intending to travel off-road. Otherwise I would have kept my Corolla running until a major repair bill arrived.

 

IMO, tighten you belt and ride it out. In 2.5 years you'll have a paid off truck and can reduce the $8000 debt by about 1/2. 6 months after paying off the truck you can be debt free. With the modifications and a truck that new you'll lose a Butt Load of money selling it now. If I'm buying, I'm keeping it 5 years minimum and 10 is better. Buying it may not have been the best decision at the time, but I don't think trading now helps you much.

If you trade, you're still going to have a car payment and for a lot longer than the 2.5 years left on your current loan. With higher interest rates you won't save that much on your monthly payment and will probably pay more in the long run. And when the Honda is paid off it will be worth less money than your Tacoma will be.

You won't save as much on gas as you think either. If you were driving 30,000 miles a year it adds up. But 40 miles/week is just under 2100 miles/year. Lets say you actually drive 10,000/year. The Tacoma @ 18 mpg will burn 555 gallons in 10,000 miles. The Honda about 1/2 that. If you figure gas at $3/gallon you'll only save about $800/year on gas. If you TRULY do only drive 40miles/week the Honda will only save you about $175/year in gas money.