Who has their truck Paid off?

Or people who fall for the "Limited extreme baja rocky mountain desert package"

 

I have 2 more payments left on my 08 and it will be payed off.

 

Traded for mine , paid doc fees the day of trade , nothing owed .
Sarge

 

car payment till I die!

 

That's what I thought back when.......but then the day came when I paid it off. Feels good!!!!!

 

Just bought it today and paid cash! Feels good lol

 

Paid mine off two weeks ago..just got title monday!

 

I don't finance anything (except my house). I just paid $18k cash for my 08 DCSB. Now I just need to save up for some mods.

 

I don't finance either, Including my house (Bank owned special ) Paid cash for my 07' Access cab 3 days ago and I think we're gonna have some good memories together hah

 

Just curious does everyone save up a shit ton and then pull the trigger? how does someone get 30k cash saved up? Just asking been driving since I was 16 and have always had a car payment.

 

^I've been working since I was 14 and buying and selling cars/trucks/motorcycles since then (buy low, sell high and don't let it depreciate). I take the money from selling the previous vehicle and put it towards the current one(s). I sold my customized 2009 Mercedes Benz C300 4matic for this truck.

 

Imagine if you didn't have to pay a house note / rent, utilities, student loans, buy your own food, etc. I don't imagine it would take all that long to save up for a new truck.

 

Not everyone, but financing a depreciating "asset" is ludicrous.

Think about it. You take out a loan for your brandidy new 2013 Taco for $29,000 at 1.79% for 60 months (this is the 60 month rate as of today at my credit union - Navy Federal Credit Union.) You pay about $1450 in interest over that 5 years. Plus your truck loses a huge portion of its value over those 5 years. So you are paying interest on a loan for something that is losing its value at the same time.

Instead, if you take that $570 monthly payment, save it up over the 5 years you can then walk into the dealer and walk out with the truck and no payment. Then, you just start saving the amount of whatever that payment would be again and begin the process again.

Just makes financial sense.

That is not to mean that it is not difficult. I was not able to do this until I was 36 years old. Made a bunch of stupid financial moves along the way which were my fault. I have gotten to the point that I cannot stand debt. Ever. The only debt we have is our mortgage. No credit cards, no car loans, no money owed to anyone but the credit union for my mortgage and we are busting our butts to get that whacked.

The other benefit of no car payment is that you have less stress. If you lose your job, become injured, get hours cut, etc.., you have one less huge bill to worry about. A paid off truck cannot be repossessed.

The other benefit is that while you are saving up that money for your new truck, if - God forbid - something happens you have an "emergency fund" of sorts if you need a new roof, septic system, or whatever.

It just makes financial sense. You do not need to go through life in debt. Hard to get to the point that you can do this.....but so worth it.

 

This. You are making a car payment, but to yourself. You act as your own bank.

 

I like this!!! Something to strive for. Thanks for the insight

 

x2

I bought my first gen cash but I will definitely be employing this as of today as best I can. Damn mods getting in the way of saving....

 

I could pay it off right now but want to build my credit.. so far @ 718 score when I get to 800 ill just drop it all for the title

 

This is a great way to manage money. However, one little piece that the guys who preach these methods always leave out is the time value of money consideration.

Same scenario you mention above, but invest the $29K for 5 years and pay the note. At the end of 5 years you end up with $6.5K net of the interest paid on the truck (assuming a 5% annual return). The truck depreciates either way (paid cash or financed), but this way you end up $6K richer - the money worked for and paid you for 5 years.

This only works if you can get a great rate on the loan (ie. 1.79%) AND be disciplined enough to invest the money and not just blow it all on mods.

Not trying to start an argument, just pointing out that there are times when financing is useful and beneficial.

 

Like I said earlier, I don't finance anything but financing a car is not the only way that you can get your score up. This is the only reason I have a credit card. I use my credit card and pay it off immedietly. By doing this you are showing your bank that you are using the card but you don't even get hit with an interest fee because your paying it off before it can be effected. I have a score close to a 780 and well on my way up.

 

A couple of personal thoughts/opinions I have tried to pass onto my daughter: 1. People are looking for investments-one of the best investments you'll ever make is not to have credit card debt. 2. Once you go into debt you tend to lose independence.