Author Topic: Sell 1 (Expensive) Vehicle for 2 (Cheap) Vehicles?  (Read 3033 times)

wasatch

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Sell 1 (Expensive) Vehicle for 2 (Cheap) Vehicles?
« on: June 02, 2017, 12:20:50 PM »
Hi all,

First post and I know this type of scenario is sort of played out, but I hope this instance is unique enough to warrant a discussion.

This site has inspired me over the last year of so to really buckle down and start on a path towards early retirement (currently in my late 20's). Now, it's time to focus on my vehicle situation.

I currently own a nice, expensive truck (paid off). I pay around $700 per year on insurance and LOTS on gas. It's a Toyota and resale prices for these trucks are ridiculous. In our local market, it would sell for around $27k (paid a little over $30k for it).

I commute 20 miles per day 3-5 days a week (riding a bike 0-2 times a week). I would love to tell you that 'I can just ride to work everyday!' But it's not happening as the 20 mile commute has no bike lanes and is an intense experience every time. 2 days a week is all I can offer currently.

The fancy truck gets 16 mpg if I'm lucky, and I'm paying $100+ at the pump every month. There has to be a more efficient way to get myself to and from work.

Finally, I use the truck as a truck most days. In fact, I need a truck bed to be happy. Sparing you the details, I require it for my hobbies (bikes, skis, camping gear, volunteer work). A car/SUV/crossover simply won't cut it. But, I think I'm being foolish and wasteful for owning this thing.


I have 3 scenarios playing out in my head:

1. Sell the expensive truck and get a cheap commuter (older Honda) AND a cheap (beater) truck (old Toyota). I am mechanically competent, and have always worked on my own vehicles, so I'm not scared of older car/truck problems. Bank 15-20k and use it more wisely.

2. Sell the expensive truck and buy a cheap truck and a cheap motorcycle (been riding for years, sold the old bike for what I paid). Bank around 15-20k and use it more wisely.

3. Keep the expensive truck. It's paid for, it has basic maintenance included for many more miles, be happy with it... But still get a motorcycle or commuter. Spend 2-4k on a motorcycle that is capable of highway commuting... Spend more for said motorcycle/cheap insurance ($100 per year). Also, save lots of gas $ and pay less for insurance on the expensive truck.


The fancy truck has zero issues and maintenance costs are little to none. Older vehicles, based on their ownership history, can have persistent issues if you're not careful. So there's an inherent risk of spending money on repairs, especially when you're maintaining 2 vehicles.

Are any of my options a good idea? Am I missing the real solution entirely??

Thank you for your help.
« Last Edit: June 08, 2017, 12:11:59 PM by wasatch »

nexus

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Re: Sell 1 (Expensive) Vehicle for 2 (Cheap) Vehicles?
« Reply #1 on: June 02, 2017, 01:22:24 PM »
How about an SUV or sedan with a trailer that you can haul behind you for your toys/hobbies? If you sold your truck for 27k, you could easily buy ONE car and a trailer AND bike that you can use AS NEEDED. Use the SUV for fun trips or grocery shopping, then use the bike for all commuting. Attach trailer to SUV/sedan as needed. If you do it right, you won't even use an entire tank of gas in the SUV each month, assuming the weather is safe to ride a motorcycle in.

Why?
-Better MPG than a truck = gas savings
-1 car = cheaper insurance, assuming it is cheaper to insure 1 vehicle instead of 2 (then again if you have a motorcycle, then you're qualifying you for multi-car discount)
-Spend less on license & registration each year (and smog checks depending on your state)
-Spend less on maintenance & repairs
-Can put all that new cash ($10k, maybe?) into your portfolio




http://www.mrmoneymustache.com/2011/12/08/turning-a-little-car-into-a-big-one/  --read this for ideas
http://www.mrmoneymustache.com/2011/05/02/car-strategies-to-cut-your-costs-in-four-or-more/   -- read this because people buy 'too much car'
http://www.mrmoneymustache.com/2014/12/01/all-wheel-drive-does-not-make-you-safer/  -- read this because I said so
http://www.mrmoneymustache.com/2012/03/19/top-10-cars-for-smart-people/  -- read this for ideas on vehicle options
http://www.mrmoneymustache.com/2012/09/04/its-never-too-late-to-ditch-your-gas-guzzler/  -- inspiration for money savings

MrsWolfeRN

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Re: Sell 1 (Expensive) Vehicle for 2 (Cheap) Vehicles?
« Reply #2 on: June 05, 2017, 10:37:32 AM »
I vote for a cheap truck like an S10 or one of those little Toyotas from the 90s, especially if you don't need 4 wheel drive. You would get to keep your truck bed, and save on gas and insurance. Get the motorcycle too if you really want it, or an e bike for bonus mustache points. No sense in having a car and a truck.

v8rx7guy

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Re: Sell 1 (Expensive) Vehicle for 2 (Cheap) Vehicles?
« Reply #3 on: June 05, 2017, 11:24:30 AM »
90's toyota trucks are insanely priced for what you get (at least around here in the PNW).  I'd spring for a 2001-2006 Ford Ranger and a 98-00 Honda Civic HX.

bigalsmith101

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Re: Sell 1 (Expensive) Vehicle for 2 (Cheap) Vehicles?
« Reply #4 on: June 06, 2017, 10:05:55 AM »
I vote for option 1. Sell the truck, and buy an old Honda commuter, and a cheap truck. Note, I said cheap truck, not cheap toyota pickup. An older F-150, Ranger, or Nissan would do you just fine and not command the high resale values. 

wasatch

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Re: Sell 1 (Expensive) Vehicle for 2 (Cheap) Vehicles?
« Reply #5 on: June 08, 2017, 12:10:25 PM »
Thank you everyone for your opinions!

I have begun the process of Option 1 for a coupe reasons:
-I have to have a truck for hobbies and fixing my home (hauling materials).. I thought about the trailer option and an SUV, but I saw more savings in the long run with an an efficient car, and a truck that gets used when needed (rather than an SUV that gets 20 mpg instead of 16 mpg).
-The car will also be used by my girlfriend, we carpool to work together, therefore the more MPG, the better.
-I crunched the numbers on gas, maintenance, insurance... and overall this seems to be the best option financially and environmentally.
 
I recently purchased a $2500 Honda that gets 38+ mpg. The insurance is less than $400 a year.

Now time to polish up the fancy truck and get it on the classifieds.

The plan is to get an older regular/single cab (undesirable) Tundra or Tacoma/Pickup. Sorry to those who said Ford or Nissan, I just can't part from these trucks due to their reliability (and my know-how on how to fix them).

I'll update this thread once the truck sells!

thisadviceisworthles

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Re: Sell 1 (Expensive) Vehicle for 2 (Cheap) Vehicles?
« Reply #6 on: June 09, 2017, 08:06:11 AM »
Have you considered getting trailer for the Honda?

You can get a hitch and a 4x8 trailer for the Honda for hauling any materials that weigh less than 500lbs for less than $1000.  Then just rent a truck when you need to haul more than 500lbs.

wasatch

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Re: Sell 1 (Expensive) Vehicle for 2 (Cheap) Vehicles?
« Reply #7 on: June 21, 2017, 12:28:01 PM »
That's an interesting idea! Unfortunately.. This Honda is LOW to the ground. Also, I don't think a hitch was made for a 1990 CRX!

So far, I am right under $3,000 into the vehicle. This includes all maintenance, registration, and insurance for a year.

Have been driving for a week and the 40 mpg car is already a noticeable savings from driving my lifted truck everyday.

Polishing up the Truck this week to sell... I'll update when it does.

wasatch

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Re: Sell 1 (Expensive) Vehicle for 2 (Cheap) Vehicles?
« Reply #8 on: July 07, 2017, 10:32:07 AM »
Update:

Been working on the car. Runs like a champ. Needed a new suspension so I am approximately 4k into my communter car experiment.

I am hoping that's about it in terms of fixing it up!

As for the gas savings: it's immediately noticeable. I've gone from $50 a week to $30 every 2.5 weeks.

I drive the truck 1-2 times per week mostly to shuttle bikes around... Should I should sell it and get a cheaper truck, or enjoy my maintenance free - paid for truck forever?

I am tracking everything on a spreadsheet, so I'll update a little later when I have some longer-term numbers.

405programmer

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Re: Sell 1 (Expensive) Vehicle for 2 (Cheap) Vehicles?
« Reply #9 on: July 07, 2017, 10:57:33 AM »
Awesome! Glad the commuter car is working out!

I think at this point your only big cost with the truck is in the depreciation. Because of that I would say to get an older, much cheaper pickup that will be cheaper to insure and will sell for essentially the same price in a few years. If you're completely in love with your fancy truck then keep it. Sounds like you are not in a hair on fire situation or anything too crazy.

I will throw in my anecdote though for fun! I bought a 2001 GMC van for $2300 and spent some money getting it in tip top running shape with new tires / repair and now I have a vehicle that can tow 5000 pounds, fit all of my friends and gear for a camping trip, and (after taking out the middle seats) can close the door on 4x8 sheets of plywood / drywall for home construction. All for ~$3K after tires and repairs. I guess I'm just trying to say, mini vans are pretty cool. Granted, this GMC will almost certainly experience engine or transmission failure one day in the future. That's why it's not my only form of transportation and it gets several checkups by myself before it goes on the aforementioned camping trips.

Also is your truck truly maintenance free forever? Even awesome Toyotas need brakes, belts, oil and tires eventually ;)

wasatch

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Re: Sell 1 (Expensive) Vehicle for 2 (Cheap) Vehicles?
« Reply #10 on: August 01, 2017, 01:51:23 PM »
Well, Sold the truck. It was tough to do as I was attached to it, but it feels good.

NOW, What to do with my 5 figure check?

The (potential) Plan:
-House renovations, carpets, and a new deck (built by me- cost is for materials) - 5k
-A cheap truck, maybe a van? -5-10k

Stash the rest in a savings? Invest? Not sure..

I'm open to ideas!
« Last Edit: August 01, 2017, 01:55:15 PM by wasatch »

the_fixer

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Re: Sell 1 (Expensive) Vehicle for 2 (Cheap) Vehicles?
« Reply #11 on: August 02, 2017, 07:03:03 AM »
When you say bikes I assume you are talking pedal bikes not motor bikes?

If that is the case why not get a bike rack or hitch mounted bike carrier for the Honda?

I see pics of CRX's with hitches and even one towing a street bike.

A hitch, cheap harbor freight trailer that can lean up against your garage wall and a bike rack and it sounds like you would be set.

If you are dead set on buying another motorized hauling device I would say look for a ford ranger or mazda b2000 from the mid 2000's they are great little trucks and this coming from a Toyota fan. I also like the minivan idea and have considered it myself.

wasatch

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Re: Sell 1 (Expensive) Vehicle for 2 (Cheap) Vehicles?
« Reply #12 on: November 01, 2017, 11:04:19 AM »
Hi all,

Wanted to give another quick update. Selling the expensive truck for 2 vehicles turned out to be a great decision.

A few observations:
-2 older vehicles require much more wrenching time. If you're not into repairing cars, your sanity may be at stake.
-Having an older honda that gets 40 mpg's is very rewarding.
-I can sell the car/truck at anytime without much loss financially.
-If one vehicle has an issue, the other one can be driven in the mean time! This allows me to take my time on major repairs.

As of now:

Sold the expensive truck for $28k.

Bought the 01 Tundra for $10k (1 owner, under 100k miles)

Bought the 89 Honda for $2,500 (and have put about $2k to make it a very reliable vehicle.. and a nice suspension..)

Put the rest of the money into savings, and plan to use it for home repairs and landscaping materials next spring.

Cheers.

wasatch

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Re: Sell 1 (Expensive) Vehicle for 2 (Cheap) Vehicles?
« Reply #13 on: May 23, 2018, 08:48:32 AM »
Once again I have made another move in terms of work transportation. The old Honda was great, but it required too much attention ($) to keep running well.

SO, I have now sold it and replaced it with a motorcycle. So far so good! 60 mpg's isn't too bad to and from work.

My update:
Sold expensive truck: $28k
Bought Honda (and put money into it running) $4500
Purchased older Truck: $10k
Sold Honda: $3600
Purchased Motorcycle: $4500

$12,600 back into savings.

I realize it hasn't been a lottery winning adventure, but I was still able to put cash into savings for future house renovations, rather than a fancy pickup.

Overall, I am happy with my initial decision to sell the expensive truck. Since the beginning of this thread (about a year), its been a pretty obvious realization that my new-truck-purchase was unnecessary and that reliable, fuel efficient transportation can be had at a much lower cost.

Hope this helps someone else in a similar situation.
« Last Edit: May 23, 2018, 08:58:49 AM by wasatch »

405programmer

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Re: Sell 1 (Expensive) Vehicle for 2 (Cheap) Vehicles?
« Reply #14 on: August 14, 2018, 02:07:00 PM »
Awesome to hear that you found something that works for you and let's you stash a little more cash! Congrats!

wasatch

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Re: Sell 1 (Expensive) Vehicle for 2 (Cheap) Vehicles?
« Reply #15 on: February 25, 2019, 12:35:47 PM »
Just wanted to update this long-term transportation adventure.

Ended up selling the old truck at a profit (including all maintenance and expenses I put into the vehicle).

Bought a '99 CR-V for $2,000 and now I am down to the CR-V and a motorcycle.

No loans, no payments, and a little extra cash in the bank has been great.

Cheers.