Keep vs sell vs another choice. Actual numbers about my F150 inequity
06-06-2019, 03:18 AM
#21
06-06-2019, 07:04 AM
#22
Senior Member
Cash flow is king...for businesses, families, individuals.
If you have the cash flow then new trucks are a luxury and keeping them 10 years makes the pain less. If you don't have the cash flow, used is a better strategy. There are always people who claim to buy new, then trade it in a year or two claiming to have made profit. They are full of crap.
Selling at a big loss is just bad for you unless you have a cash flow problem. Again, cash flow is king.
Notes:
Assets are things you own that have value
Liabilities are things you owe money on
Cash flow is the money in vs. the money out each month....this needs to be positive or you're in deep trouble. Smart people protect against interruptions in cash flow by saving each month and keeping their liabilities low. Your life is your business, treat it like one.
If you have the cash flow then new trucks are a luxury and keeping them 10 years makes the pain less. If you don't have the cash flow, used is a better strategy. There are always people who claim to buy new, then trade it in a year or two claiming to have made profit. They are full of crap.
Selling at a big loss is just bad for you unless you have a cash flow problem. Again, cash flow is king.
Notes:
Assets are things you own that have value
Liabilities are things you owe money on
Cash flow is the money in vs. the money out each month....this needs to be positive or you're in deep trouble. Smart people protect against interruptions in cash flow by saving each month and keeping their liabilities low. Your life is your business, treat it like one.
Last edited by Ssls6; 06-06-2019 at 07:40 AM.
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06-06-2019, 07:29 AM
#23
A whopping $900 that was rolled in to it.
The difference in this one is that 1- there is the option of a salvage, and there is approximately $2500 LESS inequity now.
Who said I was getting a "loan" for a salvage. Cash.
Once again, 900 bucks was rolled in. LMAO. No one reads.
If I can find one hail damaged (big whoop) for mass cheap, and can write a check for the negative difference on mine, tell me how that doesnt make sense when it saves me $20,000 in debt?
Far as I can see, body hail damage = easily fixable with time, effort and a decent paint job.
100% agree on interest..... make it dont spend it.
42 is indeed a long ***** time. About two months after I got this F150 I realized cash (like how I USED to buy cars, when I was a teenager and didnt even know about car loans) is the way to go.
If you dont obsess over your net worth, then you probably have crappy goals.
The difference in this one is that 1- there is the option of a salvage, and there is approximately $2500 LESS inequity now.
Who said I was getting a "loan" for a salvage. Cash.
Once again, 900 bucks was rolled in. LMAO. No one reads.
If I can find one hail damaged (big whoop) for mass cheap, and can write a check for the negative difference on mine, tell me how that doesnt make sense when it saves me $20,000 in debt?
Far as I can see, body hail damage = easily fixable with time, effort and a decent paint job.
100% agree on interest..... make it dont spend it.
42 is indeed a long ***** time. About two months after I got this F150 I realized cash (like how I USED to buy cars, when I was a teenager and didnt even know about car loans) is the way to go.
If you dont obsess over your net worth, then you probably have crappy goals.
Re-Read what I said. You cannot get a loan on a salvage title truck. If you have the cash laying around to spend on a salvage title then financially it makes a lot more sense to apply that cash to the loan on your current truck as a principle only payment. This would reduce the overall interest you would be paying on your current loan. This makes more sense than selling your truck at a potentially huge loss to buy a salvage title truck that you will never be able to resell.
Oh and the word you are looking for is negative equity not inequity.
Last edited by Jeff1024; 06-06-2019 at 07:33 AM.
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chris24 (06-06-2019)
06-06-2019, 10:37 AM
#25
Senior Member
Something not consider is... you are considering getting rid of a almost new vehicle in your 2018 truck and buying a "cheaper" replacement.
For whatever justification you have for that is on you.... but, if you buy another truck for 12k, well, you are going to get an OLD vehicle and NO WARRANTY.
I know what $12,000 around here look like, and you might get a 2003 F150 with 130,000 miles on it - maybe not that extreme, but you get the point.
Keep your truck, make the payments.
Your other options make zero sense to be based upon the information you provided.
None of us know your personal life or financial situation, what you own, what you have saved, etc.
Life happens and things change.
But I really can't imagine a situation, where I would buy a new $50,000 truck and then less than 18 months later, be in such a bad financial situation, that I would be considering dumping that vehicle and taking a HUGE loss on it, and buying some piece of junk 15 year old, 100k mile vehicle that WILL have maintenance needs.
For whatever justification you have for that is on you.... but, if you buy another truck for 12k, well, you are going to get an OLD vehicle and NO WARRANTY.
I know what $12,000 around here look like, and you might get a 2003 F150 with 130,000 miles on it - maybe not that extreme, but you get the point.
Keep your truck, make the payments.
Your other options make zero sense to be based upon the information you provided.
None of us know your personal life or financial situation, what you own, what you have saved, etc.
Life happens and things change.
But I really can't imagine a situation, where I would buy a new $50,000 truck and then less than 18 months later, be in such a bad financial situation, that I would be considering dumping that vehicle and taking a HUGE loss on it, and buying some piece of junk 15 year old, 100k mile vehicle that WILL have maintenance needs.
Last edited by ThunderStruck007; 06-06-2019 at 10:41 AM.
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FourBitty (06-06-2019)
06-06-2019, 12:04 PM
#26
Large Member
Keep the truck until you hit the break-even point, then dump it.
06-06-2019, 12:10 PM
#27
Senior Member
Or keep it, pay it off, and drive it for "free." I have never traded or sold a vehicle that has negative equity. It just makes more sense to tough it out.
I also err towards buying new. If I'm making payments, I like to also have a warranty.
I also err towards buying new. If I'm making payments, I like to also have a warranty.
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Slvr (06-06-2019)
06-06-2019, 03:21 PM
#28
If you had to roll $900.00 into the new truck and then finance it for 8 years i would've assumed you didn't have the cash to buy a salvage. The only reason i see to finance a vehicle on an 8year term is because you cant afford the regular 5 year terms. Dealers will typically offer 0% on up to 5 years and anything more than that you're paying interest.
He could be 4-5 years away from break even on an 8 year loan
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Jeff1024 (06-06-2019)
06-06-2019, 03:26 PM
#29
At this point I can only assume OP is either trolling or just wanting us to support what he was going to do anyway (but we aren't). OP is giving somewhat hostile responses and not answering questions clearly. We also don't know what the loan rate or financial background is. So do you have the cash to buy a salvage? Then why the 8 year loan?
Buy a hail truck and sell the 2018 and then end up with a hail truck that costs the same amount after rolling in the loss on the loan after sale?
Or try and figure out how to fix that 8 year loan into a 0% APR 5 year, although it is probably too late to do that.
Buy a hail truck and sell the 2018 and then end up with a hail truck that costs the same amount after rolling in the loss on the loan after sale?
Or try and figure out how to fix that 8 year loan into a 0% APR 5 year, although it is probably too late to do that.
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