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

138,000 Miles! She's brand new! I miss my 2nd gen, I have a 3rd gen 4cyl now. My 2nd gen was also 4cyl, I miss it badly. Don't do it. Don't give in!

Your truck may seem underpowered but it's getting the job done? If it is, Stick with it! 4th gen is around the corner.

Good luck on your decision, Be happy with what you pick

 

Keep what you have,those 4 bangers last forever,why would you even want too pay payments on the new junk Toyota puts out.

 

Hey Now.
There is nothing wrong with the slow lane.

And get off my lawn!

Old Guy here.

 

Haven't read all this thread, so someone else might have made my point. Someone has to go in debt to keep the economy going. Not me--I have been debt free for about 40 years.

For those who say that hurts credit ratings--mine is somewhere north of 700.

 

I have never been more happy and carefree in my life since I've finally paid off all my debt. I would never go back. Its like the biggest weight in the world lifted off my shoulders.

 

Nice, I love it!

The ironic thing is that someone with a ton of debt could very well have a better credit score than you, despite the fact that you (likely) have a nice net worth and don’t ‘need’ the bank to finance what you want or need to buy. A high credit score means you pay your bills on time, but doesn’t make you wealthy. Living on less than you make, Debt Freedom, and long term investing do.

I suppose debt freedom isn’t a requirement to become wealthy, but it sure does help!

 

Very few lenders partake in that type of lending. And usually, interest rates are much higher. In general, if you want the security of knowing you can access equity in your home quickly and without issue, it’s best to keep some debt and maintain a high credit score.

And as others have mentioned, your credit score impacts a lot more than your ability to borrow money. It can make or break a job offer as well as save you money on insurance, cell phone bills, etc.

And again, I have no advice either way for the OP. My truck is paid off and I don’t plan on financing another vehicle any time soon. I was simply stating a fact from my time spent in Home Equity lending. That and in the current economy, home lending has become super strict so to me, having some debt (and paying it off monthly and on time) makes the most sense. It may not for others, and I respect that. Just don’t borrow beyond your means and make sure you pay yourself (save money) for emergencies and retirement and do what you want with the rest of your money.

 

Edit :: took away the negativity...





I, like you, own my own place. I’m 28. Credit score of 781, and I have a very steady career with great income. I’ve worked hard my entire life. Nothing to be ashamed of with being honest.

Now..

I had a lease payment for my truck. I made payments on my previous vehicles and never thought twice about it. Why ? Because to me it made more sense.

Some people will tell you a small payment of $300 a month is stupid... but then they’ll tell you to throw 40K upfront on a truck...


We are going through a huge pandemic, and are still fighting through many many issues in this country.

your career today isn’t promised tomorrow. Now this goes both ways... if you don’t have income how can you make payments ? If you don’t have money saved up because you saved up for 3 years to blow it on a day of spending... well... it looks like neither sound too good.



my advice. Snag a new truck IF you have a good savings behind you. Throw a few G’s down. And make the payments. As you get more comfortable, and know you’re good to pay it off. Pay it off.

plus. . You build your credit. And good credit is nearly almost everything these days.


GL OP!

 

Rather be a boomer than a millennial

 

I am a millennial and stereo-typically learned the hard way about getting in over your head. I suppose if you have money to back it up debt is no problem. I am just so gun-shy now after having dealt with living beyond my means for a short period of time early in my independent life... and then I have paid for it the last 8 years of my life I don't think I could ever go back.

 

I'm not a boomer, I'm 21, and age has nothing to do with financial intelligence. Pay bankers and lenders interest money all you want, but I'd rather keep my money to myself. Obviously spending all your money on one thing is and idea, no one here said it. Have an emergency fund, save cash for what you want, and buy it. Simple.
Credit companies have people brainwashed that you need to have an credit score and take out a loan to build that score, when really you just use that score to take out more debt. Plenty of people have no debt and no credit score and live life fine.
I spent my late teens building my credit score, but if I would've just saved my money I wouldn't have gotten into credit card debt and been much better off.

 

If you can afford it, trade it. And finance as much as you can. With today's interest you are better off using the banks money than paying cash. I could have paid cash for the last 3 vehicles I've bought, but would have lost money.

Use the trade as a down payment and borrow the rest. I'm paying 2% right now on my F150 and that loan was from 4 years ago. You can do a lot better today. I had cash, but the money I have in the bank is paying ME more money every 6 months than I will pay out in interest over the life of the loan. I'd have been foolish to have pulled that money out.

 

Awesome man. Not here to argue with anyone ! Everyone has their beliefs on what is right and wrong.


More power to ya brotha !

 

LS Swap.

 

i would keep what you got. Paid off and reliable are words that are beautiful together.

 

Only one beer? My friends would require at least six...maybe I need some new friends.

 

They make their money in there somehow. They’re not dumb. They’re in this for the profits, not to give away trucks.

 

0

I checked the local deals and couldn’t find any info.

I bought my new 05 f150 at 0% and it saved me a ton of money, I’m sure they make money but it’s less. I was shopping for awhile than at regular rates, and when 0% came I bit. So I did have a comparison.

 

You answered your own question. If debt “freaks you out” then avoid it.

 

Thanks everyone for the thoughtful comments. I've read every one. After sleeping on it, I decided that a truck payment for 3 years isn't worth an engine upgrade.

I'm going to keep saving.