Financial Advice Needed

Sorry, I meant I WOULD agree with you on most cars

 

That's a rationalization.

Vehicles are a depreciating asset depreciating the most in the first 3 years.
$3-4k is a solid 10%. I think that's significant.

If you could buy into a stock fund where the fund manager said they will promise you a 10% less loss than anyone else who buys a same stock in a different fund... wouldn't you buy with that guy?

 

I disagree. It is not a rationalization for ME.
$3-4K to ME is worth a full warranty and 20,000 miles less.
Maybe for YOU it would be a rationalization.
My spending limits, buying process, net worth and desire to NEVER EVER have roadside problems or maintenance issues may be different than yours.
As I clearly stated, a full warranty and 20,000 miles is worth the 3k-4K for ME.

 

One thing not mentioned is new cars typically get better interest rates which reduces the savings of buying used.

 

I wasn’t discussing the point of it being worth it, or the difference not making a difference due to affordability.

I stated new vehicles depreciate faster than used. Stating the Tacoma is an exception to that rule is a rationalization.

Thats only when you take out a loan.

 

The market will return way more than 2.49%. Your retirement contributions should be treated just like any other monthly expense. As an earlier poster stated - max out (if you can) - early and often. I'd put money in my retirement portfolio before I'd put into truck mods. 2021 is predicted to be an above average year for the market.

 

Well the whole basis of this thread is explaining why it’s fiscally smarter to invest rather than pay a vehicle off. It would not be the most financially advantageous thing to take $40k out of investment to buy a truck when you can finance it at such a low interest rate.

 

You can say "rationalization" as much as you want, but that does not make it any more true.

The Tacoma being an exception is a fact, not a rationalization. Now, this is just me and I certainly may be stupid, but I make my decisions on the basis of individual facts so I don't particularly care about other cars/trucks. I was talking about a Taco, nothing else. Tacos depreciate less than most other vehicles = fact. The End.

 

Ok I’ll restate the statement. New cars depreciate faster than used vehicles.

The Tacoma may not depreciate as much as another vehicle but a new one still depreciates faster than a used one.

So you are arguing a different point than I made.

I’m not criticizing anyone so don’t take offense. Everyone has to make there own choices and there are certainly folks who can afford brand new vehicles. I just enjoy discussing the thought process of the different approaches.

No the thread is an open discussion on both.

 

I just don't see anyone on this Tacoma World seriously discussing other vehicles, nevertheless the depreciation of other vehicles, so I am just unaware how the depreciation of other vehicles matter. Sounds tangential, at best. Tacos. Not burritos or enchiladas.

Additionally, OP already has the Taco so it is all a moot point, anyway.

 

Hey @DawgLover i have a favor. Can you tell me how much you are paying each month to the truck and how much you need to pay each month? IE the payment is 550 but you’re paying 650.

and tell me how much time is left on the loan, annnnnd finally how old you are and when you plan on retiring? I’m going to do some maths with all that which might help some decisions.

and as @TreeFortRichard pointed out the Ramsey debt is high interest. My new mortgage is 2.625% which is preposterously low, so I won’t be rushing to pay that off especially since now I don’t have PMI either.

 

My take on Ramsey is that if you don’t know the difference between a Roth and traditional IRA he’s great. If you know off the top of your head what the Greeks are with options trading, chances are his lessons are children’s play. For his target audience it’s perfect.

 

$434 payment
$500 what I’m paying
34 age
67 age of retirement
5 years 3 months left on the note
$20k left to owe

 

Anyone want to do some math?

How many hours to drive 200,000 miles?

How many hours to own your truck for 10 years?

How much did you pay per hour to drive that truck?

How much did you pay per hour for that truck to sit in the driveway?

I've done the math. It sucks!

 

Is this your only debt? If not, you’re doing the Dave plan incorrectly.

 

Yes only debt.

 

if you bank that 66$/mo for 5 years, then don’t touch it at 10% returns at 67 it will be 72.6k.

your choice.

 

With the way SOMETHING is printing....that's lagging behind inflation...Basically his mortgage is interest free...That's also why if you don't get a raise that at least matches inflation every year you are taking a pay cut to stay at your work AND if you don't increase your 401K contribution with your raises you are effectively contributing LESS money even when it's more

 

YEah....BuT T@c0 resale valU3