I was once your age and wished somebody would have given me the advice that I am trying to give to you.

Contrary to what I have posted and how you have interpreted it, I'm happy that you can "afford" this vehicle. But what happens, god forbid, if you suffer a life changing event that takes away your ability to earn an income? What happens if your company decides to close up shop one day, without you having a clue that this was about to happen?

Instead of financing a vehicle for $30 to $35K, why don't you take that money that you have to pay cash and buy a used 3 to 4 year old vehicle and start paying yourself back in the amount of $30 - $35K over next 60 months?

What would you rather? A truck that you'll want to get rid of in 5 years that will be worth less than 1/2 of what you paid for it, because you're 22 and your style and perhaps relationship (family - think house, life insurance, child's needs, etc.) situation will change or at a minimum $35K in investments that are working for you? What do you think will offer more security to your spouse? A 5 year old + truck or a fully funded emergency fund?

This post was edited on 2/26/14 at 10:34 pm

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Posted by Teddy Ruxpin

Member since Oct 2006

39649 posts

Posted on 2/26/14 at 10:37 pm to Will Cover

Tosh, you kept harping on the tax deduction for buying new on the OT, but did you ever consider the opportunity cost that will cover is describing above?

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Posted by DanielTosh

Member since Feb 2014

32 posts

Posted on 2/26/14 at 10:43 pm to Will Cover

I'm not 22. I'm 27 and I know that's still young so I'm not trying to act like some old wise man.That is when I messed up my credit. I highly doubt the 2nd largest company in my field(multibillion dollar company) in the world is going to close shop. I have a 401k with close to 60k(I know it's not enough to last forever) in it plus my fiancé is an RN so in the rare event that something happens to me I can make it. I spend a lot of time in my truck so I want something nice. Plus you can write off more if you buy brand new. I've been disciplined enough to pay off all my debt and have worked my way up to a fairly high paying job and a nice truck is my reward. I have set up a savings account that 35% of my pay is direct deposited in so that's some of the money I will be saving. I plan on setting up auto bill pay for it and I will double up payments on it. I have learned a lot over the last few years and have gotten a lot better. I want a nice truck and that is the one place I plan on spending a little extra.

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Posted by Dead Mike

Cell Block 4

Member since Mar 2010

3400 posts

Posted on 2/26/14 at 10:45 pm to Will Cover

quote:
I was once your age and wished somebody would have given me the advice that I am trying to give to you.

Contrary to what I have posted and how you have interpreted it, I'm happy that you can "afford" this vehicle. But what happens, god forbid, if you suffer a life changing event that takes away your ability to earn an income? What happens if your company decides to close up shop one day, without you having a clue that this was about to happen?

Instead of financing a vehicle for $30 to $35K, why don't you take that money that you have to pay cash and buy a used 3 to 4 year old vehicle and start paying yourself back in the amount of $30 - $35K over next 60 months?

What would you rather? A truck that you'll want to get rid of in 5 years that will be worth less than 1/2 of what you paid for it, because you're 22 and your style and perhaps relationship (family - think house, life insurance, child's needs, etc.) situation will change or at a minimum $35K in investments that are working for you? What do you think will offer more security to your spouse? A 5 year old + truck or a fully funded emergency fund?

He's ~29, he wrecked his credit when he was 20-22.

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