Baby On The Way. Sell Truck?

Hi Guys,

I am stuck between a rock and a hard place. Let me give you a bit of back story. Had my 2002 Tacoma fully paid off for about two years before I traded her in. Thought I'd have it forever, but used the money for my wife's engagement ring and to help pay for our wedding.

Financed a 2006 Tundra Double Cab (always loved the roll down back window, and was stoked to get a camper shell and lock my longboards inside). After having that for a bit less than a year, I found the size less than desirable for city driving (parking) and missed my old Taco dearly. Wanted back in a manual tranny bad, as well as a more manageable urban size.

Enter my current Tacoma. Found it a USAA certified dealer for a great price, and made an unwise decision to trade the Tundra in for less than I owed, rolling over debt to the Taco. Researching the blower motor noise, I came across tacomaworld and got bit hard by the mod bug (I had always planned on lifting the other trucks).

After I got rear ended in a parking lot, I spent the bumper money on a OME lift and just kept going... Now I've got a decently modded Tacoma that I still owe lots of money on . And my wife is pregnant . I'm super excited for my son to come in May though .

And here is the dilemma. I told my Dad I was considering selling my truck to avoid carrying debt until my son is almost 4, and he offered me his 2000(?) Mitsubishi Montero Sport, for free. Now it is far from impossible for me to continue the payments, but it seems to be a better financial decision not to. My wife really wants to buy a house, though I won't be able to save much monthly for a house while making truck payments. For the record, she loves my truck and is not very excited to sell it. Neither am I, but in the end its just a truck, and could be (eventually) replaced.

I have everything to take it back to stock then sell aftermarket/modded parts, or I would be fine selling it modded and paying off the loan. I wouldn't be upset to keep it either

Tacomaworld, what do you think I should do?

-Sell it modded (roof rack, FJ 17's, Duratrac 285s, OME 885 w Dakars, Wet Okoles, stereo, weathertechs, satoshi, bakflip G2, SS brake lines, hitch bike rack, I think thats it)

-Take it back to stock and sell truck and parts separate

-Take it back to stock and sell aftermarket, keeping truck

-Keep it all

 

I tried to add a poll, but screwed up and can't seem to edit one in

 

Gl. I'd evaluate your discretionary income closely before pawning assets.

 

Man you are going to have to come to that decision on your own but do what is right for your family and avoid regret

 

Yeah, we've both been looking at our monthly expenditures pretty closely and trying to cut back unnecessary spending. I should stop looking at tacomaworld to save money

Yeah, that is what I have thought also, but my Dad's Mitsu is low mileage and been taken good care of. He bought it new. I've never been one to think much about long term investments, but this kid is changing my thought process...

If I have any regrets, its selling the 2002 Tacoma. That truck and I went everywhere and had a great time in the process. I miss her dearly. Would have been better to just finance the ring and wedding. I'm going to avoid credit and pay cash for as much as possible from now on. If you wan't it that bad, save for it. I haven't had the same attachment to either truck since. Honestly, the short bed pisses me off sometimes, but a manual was a must to trade in the Tundra, and wifey didn't want an access cab again.

 

What are the living arrangements as of now?

 

Keep the truck.

 

My wife works for a local property management company and we get a pretty sweet deal. Neither of us want to rent forever though. She knows that I don't want to buy a house locally, but move closer to the coast. It would be a pretty big move for both of us, but was discussed thoroughly before we got married.

 

+1 sir, I think that is good advice

 

A car is NOT an asset. It will never make you money.
As much as I hate to say - family should always be number 1. Sell the taco and take the free car.

 

You say 4 years left owed correct? If you don't mind me asking and you can pm me if you want. But what do you owe? For the bank to roll in your negative equity you would of had to have gotten a really good deal on the tacoma. The reason I ask is because you may have a few options open to you. The main one being refinance the tacoma at a lower rate. However continue to make most of your current payment like the payment didn't go down as much and pay it off in say 2 years. Putting the remainder back into an escrow fund if you will that will allow you to continue to build up money to save on a down payment for the house. Granted you'll need to talk to your bank about this. Are there any local credit unions you're a member of? Most cu's offer refinancing at much lower rates. And usually you can get it done with no money out of pocket. Finance is my deal if you need to pm me.

 

I would honestly just keep the truck

 

Keep the toyota man, ull have the room since its a double cab, and trust me, that mitsubishi will end up costing u more in repairs than it would cost u to keep ur truck lolol. If I were u, id consider just selling parts off the tacoma and reverting back to stock, maybe?? Idk but its deff in ur best interests to keep the toyota.

 

If your Dad is willing to give you the montero sport for free see if he is willing to help you sell it (if its worth it) to help pay off some of that debt. I don't really know if he would be willing to do that but obviously you know him better than I do Just throwing suggestions out there! Congratulations on your child and I wish you luck!
Alex

 

I wouldn't sell personally. If you have the means to pay for what you need to take care of your family why not keep something you enjoy?

 

Congrats on the baby! 1st I wouldn't do anything till baby comes , give it some time , let finances settled in, see how much money you end up at end of month. Start a budget, you will see how much disposable income at end of month, and try to pay down your bills. Start with the smallest and work your way up, once you pay one off use that money to pay the next and so forth. It will take some time but it works well. If your dad gives you car to sell ,sell it keep the money as emergency fund. If you decide to sell truck ,take it back to stock the market will be broader to sell it. Just my .02

 

To me, family is first and foremost. Material things can be replaced. You are extremely lucky to have the options provided to you that I would take in a heartbeat to secure your financial future for your family. You are given a free SUV and a deal on a place to rent through your wife. Take the offers, sell the Tacoma to be debt free and stash away as much savings as possible and upgrade later to a better car and house when the finances are in order. I will tell you from personal experience(2yo/6yo) that having a child is expensive but well worth it. They enjoy my toys('05 Tacoma/ '98 Jeep wrangler) as much as I do since I was able to suffer earlier and drove beaters so I could provide for them. Congratulations!!

 

Some must have skipped out on their accounting classes. A car is not (usually) an investment but is always an asset (assuming it's not worthless). It's offset by a liability, if you have financed it. If you owe more than it's worth, it's a net liability or negative equity.

That being said, I agree with Gelo...give it a few months after the baby comes and reevalute at that time.

 

Thanks for all the advice guys. I'm the youngest of my family, and have always made rather selfish decisions without thinking about the long term. My perspective on things is really starting to shift though.

 

Your dad is giving you an awesome chance to eliminate (as you said) a huge payment and cash flow constraint by getting rid of the truck payment. I would do it in a heartbeat...it's just a truck. As you said, it can always be replaced, and you're doing the right thing for your family. My vote is to take the deal, sell your truck, and work to pay off whatever remaining debt is leftover after the sale (if any at all).