Author Topic: Selling my pickup. Making the right choice?  (Read 2139 times)

cliner

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Selling my pickup. Making the right choice?
« on: May 06, 2017, 09:45:58 AM »
UPDATE:
Update:

Sold the pickup. Pulled off the aftermarket bumper & sold it and the winch for cash + buyer's factory/oem bumper.

Had a craigslist ad for the truck up for about 3 weeks with no bites before I started calling around dealerships again. After a bunch of phone calls to various dealerships, I sold it for $28,250.

After paying off the truck note, I paid off my remaining student loan debt.

Replacement vehicle ended up being a 2000 Jeep Wrangler with 110k on the odometer. Not the most efficient or inexpensive choice, but I think I'll be happier with it. Resale seems pretty good on them where I live, so I feel I can sell it down the line if needed.

Eliminating student loan and car payments frees up about $1,000/mo of income. I'm grateful for everyone's encouragement and suggestions.

Hey all, first post. I've been in debt for the last 7 years, making minimums, while occasionally throwing a few extra handfuls of cash at my loans, thinking I was being "aggressive". I don't know why it took me so long to wake up.

For the last 2 months I've been on a strict budget, and my new projected payoff date is September 2018.

But wait! I recently realized I could sell my truck & use the positive equity to pay off my student loan debt immediately. Why wait until September 2018 when I can do it now? I don't know why I didn't think of it before. This article was inspiring.



My numbers:
~$15,000 student loan debt remaining
~$11,000 car loan debt remaining (Toyota Tacoma 4x4 with aftermarket goodies added (suspension, bumper, etc.))
KBB puts the truck's value at ~$27,000 (dealer), ~$29,000 (private sale).

I'm parting out the aftermarket modifications right now, since I'm sure I can get more for them on CL vs what a dealer would value them if kept on the truck.

The reason I'm making this post is for reassurance. In my head, it makes sense. But nearly everyone I've talked to says I should keep the car since I like it, & it's almost paid off. "You can get all your debt paid off in a year, why not just keep the truck?", "Just be patient, you'll be out of debt soon.", "No need to do anything crazy like sell your truck!" Even Dave Ramsey advocates keeping a car if you like it, you can pay it off in a year, and the value of all your vehicles isn't >50% of your income.

I do like the truck. These pickups have a reputation for reliability, so I'm confident I could get 200,000 miles out of it if I kept it. It's fun to drive, and I enjoy off-roading 2-3 times a year. I just feel silly owning a $30,000 toy as a daily driver. Also, I've never been out of debt as an adult. I borrowed student loans right out of high school. I have a pathetic retirement savings, and zero non-retirement savings (outside of Dave Ramsey's baby step 1 emergency fund).

I figured I have no excuse not to do it. If I have to buy a used 4-banger for work commute, I can get that paid for in 3-4 months, since I'd have no more student loan payments + extra cash from reduced insurance and fuel costs.

I just want to make sure I'm making the smartest decision, financially.

Thanks all.
« Last Edit: June 10, 2017, 11:00:53 AM by cliner »

COEE

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Re: Selling my pickup. Making the right choice?
« Reply #1 on: May 06, 2017, 10:08:17 AM »
You're making a smart decision.  Do it already!  Like tomorrow!  Living below your means is the best decision you can make.  You'll save car interest, student loan interest, and fuel costs!  That's a 3x mulitiplier of savings.  It's a no brainier in my mind!

I recently bought a '07 Toyota Corolla for $3200.  Extremely fuel efficient and reliable.  Deals are out there.  Be patient - but also be ready to pounce like a lion!

englishteacheralex

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Re: Selling my pickup. Making the right choice?
« Reply #2 on: May 06, 2017, 10:29:37 AM »
Do it!

We are worth 200k+, make a combined income of 140k, and drive a $1500 1999 Toyota Corolla and a $3300 2003 Toyota Matrix. It's fun to drive beaters and trick everyone into thinking you're poor while racking up 5k+ in savings every month.

There are lots of cheap/free hobbies out there to fill the hole left by the awesome monster truck, as my son would call it.

nick663

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Re: Selling my pickup. Making the right choice?
« Reply #3 on: May 06, 2017, 12:22:54 PM »
If you really like offroading you could buy a late 90s Cherokee or Wrangler instead of a econobox.  Just throwing that out as a "have your cake and eat it to" option. :)

Fuel mileage will be significantly worse than a Fit but if your commute is short that wouldn't add up too much.

jane x

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Re: Selling my pickup. Making the right choice?
« Reply #4 on: May 06, 2017, 12:28:01 PM »
Sell it!  If you replace with an older reliable used car you will save a ton of money on insurance, registration, gas, etc.  It's an expensive toy that you can easily rent if you ever want to use it again.  Being debt-free feels phenomenal.

Paul der Krake

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Re: Selling my pickup. Making the right choice?
« Reply #5 on: May 06, 2017, 01:00:49 PM »
Trucks are for work. You don't need a truck to do your work. Ergo, you must sell your truck.

MsPeacock

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Re: Selling my pickup. Making the right choice?
« Reply #6 on: May 06, 2017, 02:54:58 PM »
I sold my big expensive car and got rid of the car note and bought a car with cash and it was a huge relief! You will be so glad to have those loans GONE.  Do it!

ToTheMoon

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Re: Selling my pickup. Making the right choice?
« Reply #7 on: May 06, 2017, 03:47:23 PM »
If you really like offroading you could buy a late 90s Cherokee or Wrangler instead of a econobox.  Just throwing that out as a "have your cake and eat it to" option. :)

Fuel mileage will be significantly worse than a Fit but if your commute is short that wouldn't add up too much.

This is exactly what we did a couple of years ago.  Sold our 2012 Tacoma TRD and replaced it with a 1996 Jeep Grand Cherokee for under $5k CAD.  (We were looking for a plain ol' Cherokee, but came across a Grand Cherokee that had already had all the mods my hubby would have done anyways - was too good a deal to pass up!)  We don't regret it at all, and the Jeep has gotten way muddier than the Tacoma ever did. :D

That said, we do not have a commute, and we do most of our long distance trips in our '06 Mazda 3.

Bimmy

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Re: Selling my pickup. Making the right choice?
« Reply #8 on: May 06, 2017, 04:49:23 PM »
Second the idea that an older, used truck/jeep would be a good "compromise." A Honda Fit would be much more fuel efficient/cost effective, but I get wanting a car that doubles as a "toy."

cliner

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Re: Selling my pickup. Making the right choice?
« Reply #9 on: June 10, 2017, 11:00:06 AM »
Update:

Sold the pickup. Pulled off the aftermarket bumper & sold it and the winch for cash + buyer's factory/oem bumper.

Had a craigslist ad for the truck up for about 3 weeks with no bites before I started calling around dealerships again. After a bunch of phone calls to various dealerships, I sold it for $28,250.

After paying off the truck note, I paid off my remaining student loan debt.

Replacement vehicle ended up being a 2000 Jeep Wrangler with 110k on the odometer. Not the most efficient or inexpensive choice, but I think I'll be happier with it. Resale seems pretty good on them where I live, so I feel I can sell it down the line if needed.

Eliminating student loan and car payments frees up about $1,000/mo of income. I'm grateful for everyone's encouragement and suggestions.

chasesfish

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Re: Selling my pickup. Making the right choice?
« Reply #10 on: June 10, 2017, 02:25:50 PM »
Congrats on the change!

We have an '03 4-cyl with 100k, just find a solid mechanics shop and enjoy it the jeep.  We don't drive ours very far, it beats us up on longer trips and a black soft-top struggles in 100 degree Texas temps

ToTheMoon

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Re: Selling my pickup. Making the right choice?
« Reply #11 on: June 10, 2017, 10:28:23 PM »
Update:

Sold the pickup. Pulled off the aftermarket bumper & sold it and the winch for cash + buyer's factory/oem bumper.

Had a craigslist ad for the truck up for about 3 weeks with no bites before I started calling around dealerships again. After a bunch of phone calls to various dealerships, I sold it for $28,250.

After paying off the truck note, I paid off my remaining student loan debt.

Replacement vehicle ended up being a 2000 Jeep Wrangler with 110k on the odometer. Not the most efficient or inexpensive choice, but I think I'll be happier with it. Resale seems pretty good on them where I live, so I feel I can sell it down the line if needed.

Eliminating student loan and car payments frees up about $1,000/mo of income. I'm grateful for everyone's encouragement and suggestions.

Yeah!  Congrats, and enjoy getting your new Jeep dirty while your bank account grows!