Who has their truck Paid off?

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.

 

Same. I'm 21 and have bought and sold about 60 vehicles plus trailers, construction equipment ect. It's all about making your money make you money. I am now transitioning into real estate to implement the same practices.

I started out with $200 trailers and mowers when I was 14. I just closed on a house with a 129k price tag. Paid for in cash and will hopefully profit about 20k from the deal.

You can do anything you set your mind to with enough discipline.

 

I completely agree. I just moved into my first house 3 weeks ago. We definitely plan to flip it after a while. Most everything that I own is for sale if someone wants to pay the right price. I can always replace it when its needed again.

 

Paid in full

 

Bought both last year and paid in full



My early 20's was a different story tho.

 

No Mortgage and no payment on my 2011 4x4 . Debt free

 

Good luck buying a house with cash here , average home price in my area is about $600K

 

Lucky dog.. 129k is a down payment for a house here. Ugh I hate california pricing sometimes... and the politics, and the crowds/traffic, and the pollution.. but man the jobs are great.

 

Here too. My townhouse cost more than that. Average single family home here is about $800K. Even higher in my side of the island.

 

Just got mine Paid off and it was the same month my daughter was born. LOL swear I didnt plan it that way but worked out good

 

Yeh, but up there in America's hat $600k is pretty cheap in snow dollars right?

 

The dollars are essentially at par

 

Dang.. My Canadian friends in Calgary get really tweaked with the "America's Hat" comment. They have taken to replying with saying America is "Canada's ass" lol

 

Your Jedi mind tricks won't work on me .

These aren't the droids you're looking for

 

Hence my favorite biblical verse - not making this a biblical thing, but I think it applies whether one is religious or not.....

The borrower is slave to the lender. Proverbs 22:7

You lose your independence. Slavery.

 

You are welcome, but I cannot take credit for it. I simply reworded it from something I hear frequently. I listen to Dave Ramsey (www.daveramsey.com) quite frequently, and his thought process is to live debt free.

I may have some problems with some of his choices, however his plan to get out of debt is pretty solid. I refuse to be a slave to anyone......except my credit union right now....but I cannot wait to break free of the mortgage shackles.

It took me YEARS to get here. YEARS. And I refuse to listen to anyone who says that it cannot be done. Took you years to get into ridiculous amounts of debt, gonna take you years to get out too.