Should I keep the truck I have or go into debt for a new one?

Seeking some advice.

I have a 2014 Toyota Tacoma access cab 4x4 with an anemic 4 cylinder engine. It is paid off. I like everything about it except for the weak 4 cylinder engine.

I'm thinking about trading it in on exactly the same thing only a new one with a 6 cylinder engine, but would have to go into debt for about 3 years.

House is paid off and I have a secure source of income, but debt freaks me out. Should i keep a truck I dislike and save up for 3 years and pay cash, or go into debt for 3 years for something that I would like.

I will add that it has 138,000 miles.

 

ide probably save so I could do a straight trade with cash on top. That's just me tho.

 

This won’t answer your question, but I used to work in home lending so I’ll throw this out there as a piece of data...

Debt is not a bad thing. Especially so when you don’t really need it and as long as you’re not stretching beyond your means. Let’s say in the future, you need quick cash for any number of reasons and you don’t have enough saved (or you decide to make a big purchase and don’t want to finance it directly). If you were to try to use the equity in your home to get access to cash, it’s best to have some debt that you’ve been consistently paying on for some time.

I saw it happen way more often than I ever thought I would, but I was forced to turn down potential home equity loans because the applicants had been debt free for so long that their credit scores were zero. And in today’s lending world, you want your credit score and income to be top notch and verifiable, just in case.

Anyway, I can’t really help you with your decision, but I figured I’d share that piece of information. Because, well, the more you know...

 

Shouldn’t ask the masses who are in debt and have no plan to get out about if you should go into debt. They’ll mostly say yes ha.

Only ask people with the results in life that you want what their take is.

I’m glad you don’t like debt and would say to keep it that way. Start making yourself whatever dollar a month payments you can afford. Once you have some money set aside for the difference specifically for an auto purchase then sell you vehicle privately and find a used Tacoma with a 6 cylinder that fits your needs. You lose the same amount on new one way or another.

-Figure out what you truck is worth (and will be tentatively worth with a year or two of miles on it).
-Figure out what the trim level you want will cost used.
-Save that difference in cash as quickly as possible.
-THEN start shopping for the switch.

good luck!

 

I think it should come down to what the interest rate is and how much you're willing to cash out on interest during the life of the loan. If that extra cost is worth it to you to trade in early, and you're 100% satisfied with your purchase, then go for it.

 

Never good to go into debt, but you seem financially secure.

Interest rates are low (even 0%), so borrowing costs would be low. The only downsize, is that if you are talking "new", it would mean a 3rd gen, with all of its problems.

 

Wasn’t going to start the topic ha but OP you should definitely test drive first. Some don’t mind it. Many hate it horribly ha I did. Find a 2015 with a V6 and you’ll be debt free and actually have a truck you can like to drive

 

save till you have cash if possible. Two people is life you never want to pay are lawyers and bankers. They both take your money and don't give you anything in value they just take money from you

 

Do what will let you sleep well at night.
My .02 is to save up and pay cash.

 

Pay cash. It feels better.

 

when i buy a new truck i start making truck payments to another savings account just like i have a truck payment. So when its time i have the money ready.

 

going into debt

 

normally, you could probably go for it. but i think i would wait until this economy figures out which way it wants to go. there is a good chance the price of new trucks hit the toilet and you can save a few bucks right there.

i am debt free except my home. so you beat me there!! in the grand scheme, i think a truck payment is way less scary than my house payment. i can see zero house payments in the horizon. my 15 year loan is moving along fast!!

 

Word. It’s called “savings” haha.

The wife and I have three funds.

Emergency: 6 months expenses
Checking: Just over one months household income
Savings: more than the amount of whatever you will need next (appliances getting old, maintenance, hobbies, vehicle, etc).

Pretty simple pay yourself first!

 

Go for it. Life is too short. Says a 55 year old.

 

I would say go for it. You're only financing the difference between two vehicles, neither of which are expensive (relatively). And like a poster above, life is short this isn't some reckless overly expensive frivolous purchase. I am debt free (except house) and I don't like debt any more than the next but I think this is a safe bet. I couldn't imagine driving around THREE years in something I didn't like, lol.

 

Read the room, dude.... 40+ million unemployed, inflation going up, businesses shutting down or going bankrupt, no end in sight

 

Debt is slavery. Interest owed on debt is robbery. Stay debt free and live free.

 

I would get the truck, make payments and save to pay off early.

You don’t want to drive in the slow lane for 3 yrs.