- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Getting Out Of A Vehicle You Are Upside Down On?
Posted on 10/23/17 at 11:15 am to LNCHBOX
Posted on 10/23/17 at 11:15 am to LNCHBOX
Sell current car: $(4,000) - $(6,000) guaranteed loss that he otherwise doesn't incur, operating cost $0.15/mile ($2.25 / 15 mpg)
Buy replacement car that gets 30+ mpg: $7,500 ~ $10,000 cost, operating cost $0.075/mile ($2.25 / 30 mpg)
OP has created a guaranteed loss on a functional truck that he otherwise doesn't have to incur and spent over $10,000 to save about $0.075 per mile. He'd have to drive 133,333 miles to break even, plus he has $10,000+ less in his pocket because there is an irrational fear of being upside down.
Or he could keep paying $0.15 per mile to drive his truck and spend $0 extra cash to deal with that irrational fear.
Buy replacement car that gets 30+ mpg: $7,500 ~ $10,000 cost, operating cost $0.075/mile ($2.25 / 30 mpg)
OP has created a guaranteed loss on a functional truck that he otherwise doesn't have to incur and spent over $10,000 to save about $0.075 per mile. He'd have to drive 133,333 miles to break even, plus he has $10,000+ less in his pocket because there is an irrational fear of being upside down.
Or he could keep paying $0.15 per mile to drive his truck and spend $0 extra cash to deal with that irrational fear.
Posted on 10/23/17 at 11:19 am to GoIrish02
Why are you ignoring the current loan he has?
Posted on 10/23/17 at 11:19 am to 3andOut
Why pay an extra $1,000 to get the balance down? The loan terms are still the same and no one is going to take your truck. You'd be better off investing the $1,000 elsewhere than paying down the loan to "sleep better".
Just realize that is an emotional decision not a rational one and it makes you poorer.
Sounds like you should put the right size tires on and be done with the whole question.
Just realize that is an emotional decision not a rational one and it makes you poorer.
Sounds like you should put the right size tires on and be done with the whole question.
This post was edited on 10/23/17 at 11:30 am
Posted on 10/23/17 at 11:22 am to LNCHBOX
The loan he has is not changing. Selling the car will generate a guaranteed loss he otherwise doesn't have to incur. He can keep the loan and his financial position doesn't change.
He's just afraid of being upside down.
Edit: He's got a truck worth $20,000 and owes $26,000, that's the recognition of the loan and satisfying it.
He's just afraid of being upside down.
Edit: He's got a truck worth $20,000 and owes $26,000, that's the recognition of the loan and satisfying it.
This post was edited on 10/23/17 at 11:27 am
Posted on 10/23/17 at 11:25 am to UpstairsComputer
quote:
Or this. What type of vehicle are you thinking you are getting? What's the difference in gas mileage?
For example, if you're getting 20 mpg hwy now and you upgrade to 25 mpg, you'll save 6 gallons per week. Let's say it's $2.25/gal. You're saving $13.50/wk or $700/yr.
If you're $6,000 under water... it'll take you 8 years to break even on getting better gas mileage.
Absolutely this. You will lose money and end up with a cheap car you don't really want.
Posted on 10/23/17 at 11:28 am to 3andOut
quote:
When I bought this truck (before adding the life and oversized Tires I was getting a 24-26 mpg. I am now getting half of that.
why not remove everything affecting mpg and then pay off the truck till you're atleast even or up a little?
seems like the cheapest option
Posted on 10/23/17 at 11:34 am to GoIrish02
quote:
He can keep the loan and his financial position doesn't change.
But you've been counting the cost of the replacement vehicle. You're inflating the replacement cost without acknowledging that his vehicle debt would go down substantially.
Posted on 10/23/17 at 11:49 am to LNCHBOX
Irrational fear of "vehicle debt" is the whole argument we're having. The OP said he's comfortable with the current level of debt, you're encouraging using a bunch of cash to satisfy an emotional fear of debt instead of sound rational decision making.
Posted on 10/23/17 at 11:55 am to GoIrish02
He has a $6,000 loss.
Just with mileage... he breaks even at 80,000 miles. (6,000 miles / 7.5 cents
However, he is also going to spend less per month on a new car note vs his old note. He may even get a better rate. Further, his repairs may be less (or more) depending on what he buys. His insurance may well be less.
Depending on any of these factors... his breakeven time may be as little as a year.
Just with mileage... he breaks even at 80,000 miles. (6,000 miles / 7.5 cents
However, he is also going to spend less per month on a new car note vs his old note. He may even get a better rate. Further, his repairs may be less (or more) depending on what he buys. His insurance may well be less.
Depending on any of these factors... his breakeven time may be as little as a year.
Posted on 10/23/17 at 12:09 pm to GoIrish02
I'm not encouraging anything. I answered his questions, and I also questioned your math.
Posted on 10/23/17 at 12:22 pm to 3andOut
quote:
6" lift 4WD
With truck nuts? Or nah?
(Disclaimer: I haven't read this thread. I'm sure this joke has alrady been made. But considering this is on Money Talk and not OT, I wanted to be sure)
Posted on 10/23/17 at 12:40 pm to lnomm34
Gotta keep the truck nutz, is this even a question?
Posted on 10/23/17 at 1:03 pm to 3andOut
1) try listing your truck in a number of places. (penny adds, craigslist, ect.) you will get more in a private sale then you will at a dealership
2) go by a used car with good gas millage. the $6k difference between payoff and list go buy a $6k car. otherwise w/ a 120 mile commute, you will start depreciating the truck even more and become even more upside down. (high millage deduction on KBB)
3) hopefully truck will eventually sell, if not by only sparingly driving it around town, you will not rack up the miles.
4) learn life lesson. vehicles are a depreciating asset, and custom upgrades are not a return on investment item. i feel for you in this situation
2) go by a used car with good gas millage. the $6k difference between payoff and list go buy a $6k car. otherwise w/ a 120 mile commute, you will start depreciating the truck even more and become even more upside down. (high millage deduction on KBB)
3) hopefully truck will eventually sell, if not by only sparingly driving it around town, you will not rack up the miles.
4) learn life lesson. vehicles are a depreciating asset, and custom upgrades are not a return on investment item. i feel for you in this situation
Posted on 10/23/17 at 1:28 pm to LNCHBOX
quote:
LNCHBOX
has the right answer.
This is a one time mistake you are trying to rectify as cheap as possible. Don't make it again.
I personally believe that vehicles are the #1 reason people struggle financially. I have rarely met someone that does vehicles right that is not doing well. However, the people Ive met with 2-3 car payments are struggling heavily.
Posted on 10/23/17 at 4:39 pm to lnomm34
Believe it or not no one made a truck nut joke, or even chastised his ridiculous and needless 6" lift
Posted on 10/23/17 at 6:05 pm to 3andOut
quote:
When I bought this truck (before adding the life and oversized Tires I was getting a 24-26 mpg. I am now getting half of that.
Good job on paying extra. Whatcha gonna do?
Posted on 10/23/17 at 6:07 pm to 3andOut
I’m no help but why buy a vehicle you couldn’t afford straight up with cash?
You must’ve financed a lot of $ because that truck new is 42-45k.
You must’ve financed a lot of $ because that truck new is 42-45k.
Posted on 10/23/17 at 7:38 pm to SilverStallion
How about finding a baw with a stock truck to trade parts with you with even a little cash from him? Get your truck back to stock and make it's operating costs more reasonable.
Posted on 10/23/17 at 8:10 pm to 3andOut
You should be able to part out the wheels & tires pretty easy, and only lose a grand or two. Even if you sold the old ones, stock wheels are all over Facebook marketplace for cheap. Getting the lift removed is gonna cost, I dunno, a grand? Maybe you can find a shop that will trade the labor in exchange for the parts.
Getting the truck back to stock seems like a no brainer.
Getting the truck back to stock seems like a no brainer.
Posted on 10/23/17 at 8:44 pm to 3andOut
Selling wheels and tires and going to smaller tires should be a wash morny wise. Might even make a little. And will help with MPGs some.
Popular
Back to top
Follow TigerDroppings for LSU Football News