re: Should I pay cash for a new vehicle?

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cannot seem to pull the trigger on a used vehicle that out of warranty that cost 25 - 35K.

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So you will spend and extra $25-35k on a new vehicle instead of a “new” used vehicle that may need (at the most) $10k in repairs over the next 3-5 years.

New transmission $4k new engine $6k? Those are the two big ticket items on a used vehicle. Is it worth $25k to not have to possibly pay $10k?

Not trying to persuade you one way or another, that is just my thinking. I may never buy a new vehicle. I’ll let someone else lose instant value for me.

On top of that, a warranty is trash anyway. Something is going to go out at 65k with a 60k mile warranty almost guaranteed.

He’s already driving that luxury SUV.

Just remember,

everybody drives a used car.

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new motor $6k?

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Try $11k...I just went through this.

I bought a new (to me) vehicle.

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Does your CD have enough to cover the total cost of the vehicle? If so, a CD loan would be a better option than cashing it out. Most banks are super flexible on CD repayment terms, and the great thing is that the CD continues to earn interest throughout the life of the loan.

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This is the worst advice in this thread. CD loans are a horrific financial tool.

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am now leaning to fixing the F150 and driving it for another year. Its hard as hell to pull $50K out of the bank so I can drive to work 4 miles down the road and go to Lowes on Saturday morning

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Is there any type of middle ground? Would there be a vehicle in the 40-45k price range you'd enjoy?

When the pandemic hit, I "downgraded" from a 62k suv that I didn't need (as I shifted to 100% remote work) to a vehicle with a 41k MSRP.

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This is the worst advice in this thread. CD loans are a horrific financial tool.

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My post was illustrating that it’d be a better idea to collateralize a portion of his CD than to cash it out. Given it was the 1st option he listed, it’s pretty clear he was considering it.

Not once did I advise him to go that route to fix his situation. You’d look less like an a-hole if you could practice a little reading comprehension.

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This is what I was thinking. Does it have to be a 62k luxury SUV? (And does that include TTL?)

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My $.02 is the guy wants what he wants. Seems he drives vehicles until they're paid off and wants something nice to drive around for the next 10-20 years. I'm not shaming him into something less if he's well off to afford a vehicle outright with cash.

A vehicle worth $9,000 that needs $2,500 in repairs is worth relatively immaterial money. At some point, the vehicle just isn't worth the potential to be stranded on the side of the road unexpectedly and all vehicles need replacing at some point.

Personally, I separate investments and expenditures. A 401k is your retirement. I don't want to jeopardize a dollar of earnings for a depreciating asset. Once I paid off my truck, I opened a brokerage account putting in the monthly payment of what I want my next vehicle to be, and I've been earning the interest on that for a year now. If the OP's vehicle can be reliable enough for a couple more years, I'd throw every penny I could into an investment account and patch the current truck along until there is at least half of a down payment in the investment account if it can wait.

If it can't wait or don't want to wait, I'd cash out the CD and use all of that to fund whatever portion of the new vehicle you could. The rate on that is lower than the interest you'll be paying.

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My $.02 is the guy wants what he wants. Seems he drives vehicles until they're paid off and wants something nice to drive around for the next 10-20 years. I'm not shaming him into something less if he's well off to afford a vehicle outright with cash.

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Oh I'm definitely not shaming him for thinking of dropping 60k plus on a vehicle. Not everyone wants to drive around in a decade old vehicle, I certainly don't.

That said, OP either isn't in a financial position to drop 60k without blinking, or, he's extremely conservative with his spending; hence why he started this thread.

I was essentially in the same position as the OP. I could easily afford a 60k vehicle, but since the pandemic, I drive about as much as he does. So, I cashed out the equity in my Audi Q7 and went with a nicely equipped Nissan Pathfinder. The added luxury (and cost) of the Audi simply wasn't necessary anymore.

i have a 2014 F150 that is running strong, but crap just keeps fizzing out on me that need minor repairs.

currently, my A/C is going out, but with some manipulation to the area under the glovebox, the A/C will kick right on and do a great job. very annoying to have to keep doing this just to get it to blow cold air.


how many miles you got on it?