Looking for serious advice.. Should I sell my Truck? Struggling.....

This has nothing to do with the quality of the vehicle.

Background: As an adult, I have only owned two other vehicles. I had a 1991 Toyota MR2, which purchased for $5K when I was 19. I drove that until someone hit me and totaled the car when I was 27. I then bought a used 2007 Tacoma 2.7 I4 MT for 12K. I drove that car until my second kid arrived last year. I had a two-seater, and it just wasn't going to work anymore with my family anymore.

As you can see, I have never bought a brand new car. I tried buying another used Tacoma, and I looked at 2014-2016 models, and the prices were outrageously high compared to brand-new. In response, I just said "screw it" and I bought a 2017 MT V6 for $35K. I didn't really like the idea of payments because I have never really committed to a 5 year payment plan. I financed my old Tacoma, but I paid it off in under two years.

I am just not comfortable with this debt load. I have $26K on the truck, and I have a $6K student loan. I never cleared out the $6K student loan. Someone advised me not to pay it off completely because I can deduct the interest for taxes. I feel like that was a stupid idea in in hindsight. I don't have any other debt, and no credit cards.

my monthly payment is $550 month, but I have paid $660 a month since the loan started. I have never paid a monthly bill this high before, and I am just not feeling it anymore.

Now I have a third kid being born later this year, so I definitely need more cash-flow flexibility.

I just don't want to pay this anymore.

Here are the options I have given myself.

1) Sell the truck and get something way cheaper. Thankfully, I wouldn;t lose too much, and I would immediately clear the loan. I really like my Truck though, so this would be the most painful for me.

2) Stop saving and put more towards the car. I have already cancelled my 401K and Roth Contributions because this is path I intend to take. I also have 15K in cash that I can put toward it anytime. I have bonus coming, which I intended to use to clear out my student load debt of $6K, but the leftover can also go to the car note. I view this as a dangerous move because I am 35 years old, and I only have $100K in retirement savings. I think $100k is too low for someone my age. However, As soon as my debts are paid off, I will greatly increase my savings rate Plus, I think market will crash or stay flat sometime in the next year or so. I wouldn't miss out on gains. But I would miss out on a 50% employer match.

3) Start driving for Uber or Doordash, and use the extra money to payoff the loan. I would use my wife's car for this. I did Doordash for fun a 2 years ago. I would mind getting back into it. This means less time with my kids and wife, which I not ideal.


Love to know what you guys think. I know there are many older and wiser people on this site, so I would greatly appreciate your advice.

 

Hard to say, I don't like car payments either, but I stuck with it, paid mine off, I now have a Tacoma with only 30K on it and no payments. I say keep your Toy.

 

My rule: ONLY offer advice if asked for it.
Ok, you asked.
I'll state my own ideals.
The truck is just a thing. This thing, is stripping your cash so you're squeaking. And child no. 3 your squeaking is likely to starting really hurting. You. And all that needs YOU. And you've placed your priority on that thing over there.
Get transportation you can afford for the time being. That thing over there will be there whenever you're more comfortable.
Man, don't make you family and your financial situation a nightmare.
Well, that's my thoughts. Many will disagree I'm sure.
Good luck with whatever you decide.
By the way, I know it's hard. I worked my ARSE off my whole life, and only put myself in debt for one thing. A home.
Oh, and learn to budget. Best you learn how to invest, how to save, or both..

 

I would say put that bonus 15k
6k toward student loan
6k toward the truck
3k toward retirement
Then maybe do the door dash or uber a few times a week or month to help regain the 12k in savings and keep paying on the truck. Maybe try to refinance it. With a 3rd child on the way you may want a bigger truck too.
Just my .02

 

Ditch the current taco for a leased taco boom money saved and you still have a taco for 300 bucks less. When lease is up walk away and have no payments.

 

DO NOT give up the 50% employer match...its free money. Max out the match. Pay off your highest % debt first. 100K put away at 35? You are not doing bad. People 35 and 44 with more than $50,000 set aside ~29% of the population.

 

You having 100k in retirement is more than practically all Americans at your/my age. I look at that a bit separately from month-to-month costs however. If you are “treading water” every month, it could be a good idea to trade down. But, if you are doing fine, well...the point of making money is to spend it.
Also, don’t short change college funds when thinking about monthly costs.

 

Sell it, re-buy when you can afford it.

 

What is your % rate on your auto loan?

 

Take a loan on your 401k and clear all your debt. Then make the payments back to your 401 k that way your only paying back to yourself. Having debt to have a writeoff is dumb in the long run. Work to live debt free. You wont feel so bad paying back to yourself. Whole lot less stress and deducted right from your paycheck. Dumping the truck isnt going to get you much of anything since you would have to have a good car to haul the family around. a 50% employer match is allot, you should take advantage of it. More money than you can get anyplace else.

 

Well, you are asking for advice, so here are my thoughts, fwiw:

Tough it out, make the payments and don't mess with the retirement plans.

Keep the paid off truck for 20 years.

Enjoy the family and keep it simple, avoid expensive vacations in lieu of family camping trips.

Brown bag lunches and coffee thermos.

Eat dinner at home every night.

These practices are not easy, but neither is raising three children.


However, the Tacoma is not a great family vehicle, if you do trade it in, bite the bullet and get a minivan, seriously.

Good luck whatever you decide.

 

Solid.

 

Whoa let’s not get too crazy here!

 

Since you're not really bad off, this is a horrid idea. Time is your friend on retirement investments. Anything younger is better than more when older.

Never try to time the market. Cost averaging is what you want. Think of it this way. When the market is down, why not buy more? No one wants to buy high. You'll looking long term, not day trading.

You have no clue about that. 2 or 3 great days could offset 300 days of mediocrity.

That is simply throwing money away. Period. Like driving down the street with your wallet out the window.

Even if you feel for some reason you have to reduce your savings, always contribute enough to get the match.

It's good that you are considering options and trying to plan. Just don't make choices that will lead to regret. Like tax deductions on student loans being a good thing, as opposed to paying them off.

Of course we don't know the things your CPA might know, but there's a 97.33 percent chance this was lousy advice. If the advice was you're paying 2% fixed and here is a 4% fixed investment, keeping the debt might have been ok. But for IRS deduction............ not so much.

Only other advice I'll offer is to not be hasty in your final decision. Panic leaves more money on the table than due consideration in most cases.

 

Or an SUV.

 

Yeah, that is the kind of decision that separates the men from the boys.....

 

I can fit 3 in my wife’s T4R

 

Badass......

 

Again, as some one asked, what's the %on your loan? Also what would you replace the taco with? 3 kids need some space.

 

I see it like this, you’re already positive on your loan since you’ve been paying extra. If you’re worried about your payment being too much, you could refi your current loan and still pay what you’ve been paying monthly, but if for some reason money becomes tight then pay less that month. Also, if you have 15k, pay off the student loan completely and save the rest. That way, if you have a situation arise where you need funds you have it at no pentaly to your retirement. This is all pending on if you love the truck? I’m 33, a total car/motorcycle guy and always have been. That being said, I’ve had over 20 vehicles and I’ve gotten rid of vehicles I enjoyed for a better move and I regret nothing. So, if you don’t LOVE the taco, send it down the road and don’t look back.