Please help! Buyer's remorse, need advice

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Topic Author
Ryanlion8506
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Please help! Buyer's remorse, need advice

Post by Ryanlion8506 »

I should have came here before making my bonehead decision to buy new truck I never needed. I had a paid off practically new, nice midsize sedan I really liked, paid! Only had about 20,000 miles. My wife and I were making very strong progress with our financial goals thanks to this site and still are. I tried to strongly convince myself I "needed" a new crew cab full size truck, even went and put level and bigger tires on, stupid! I traded my car I liked in for 18k and put another 2k down on my 34,500 truck after rebates. I bought in April, it now only has 2,000 miles, the newness has worn off and I wish to gosh I had kept my paid off car, because I don't need a truck and am beginning to not want it quite frankly. We can easily afford it, we owe 16k. I took out a 5 year loan at 4.09% since I got 5,500 in rebates. I'm currently refinancing with credit union at 1.9 for what it's worth. I already know, regarding depreciation of new autos, so please save that one, I need your advice on should I sell privately and go get another car and write this off as a really dumb mistake, or keep truck and pay it off by January or February? I pasted below our entire financial stats from last October. What you won't find in there is how much my wife and I are now paying towards debt. We ended up stopping 529 on my 5 year old for now, stopping my Roth for now, stopping 200 savings, we will be paying off my student loan this August :D and then paying off auto or 2nd lien. We are paying $3,080 month towards student loan and auto combined, truck being 301.60 of that.

So, sorry so dang long, please help! Thank you in advance.


Ok, I've been reading many financial blogs and sites for some time now and have realized this forum has the most intelligent people who go out of their way to help others. I would greatly appreciate any advice and help here. I'm also very aware I'm not where I need or want to be financially, but am confident that with your help and my hard work my family can reach some huge goals.

Married, file jointly
Wife is 39, I'm 37
Combined income around 120,500 gross
25% federal
No state, TX

Debt: My annoying student loan. 15k, 3.5%.
Mortgage is 1850 month on 80% loan with taxes, insurance, 4.25%, 2nd lien 15% loan is 291 month 6.25%. 249k on first, 46k on 2nd.
No CC debt, No auto debt
Savings: About 3 months, goal is at least 6

Investments: I will have full state pension if I teach to 60, early partial if 54-55.
Roth: T. Rowe Price Cap Appreciation 15k, maxing out
Wife's employer: They contribute 4.5% of 75k, plus she's been putting in a tiny $100 month, 24k. VADRX Invesco 500 Index 50%, Fidelity Bond Index 40%, Vanguard Small Cap Index 10%
Her Roth: Vanguard Wellington 33k, Wellesley 3k, maxing out
4 year old daughter 529 T. Rowe Price. 250 month

We are behind because we took a while paying off debt just to get here. We sold old house last year because neighborhood was getting bad, and schools for daughter. This house is an investment long term, but great house to get our daughter through school with great schools!

My questions are:

1.) We are paying over $1,000 month towards student loan on top of principal. Should we pay this or less and invest rest? Wife really wants it gone.

2.) We have recently started really budgeting and will have quite a bit more to invest, I'm thinking 403b for me? Plus more for Wife's 403b. There is no match, but we do have Vanguard. How much and what funds? I sleep well with funds like Wellington and T. Rowe Cap App.

3.) Once the student loan is paid off, we will have almost 1200 extra month to pay down 2nd lien or invest or both. Best strategy here?

4.) Auto fund so we never have car payment again?

5.) Taxable Account through Vanguard? Would love to max 403b accounts and Roths, but can't at this time.

I want to retire at 55, not 60, meaning my pension would be less. So I have 18 years to make this goal happen. I'm also reading a lot of dividends books and read the dividend Mantra site. Wondering if I should go all out dividend stocks or not?

We will sell this house come retirement and move somewhere less expensive with lower taxes.


As you can see I have a lot of questions and I would be extremely grateful for your time!
furnace
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Re: Please help! Buyer's remorse, need advice

Post by furnace »

1. Sell the truck and buy a used car.
2. Pay off student loans. Pause the 529 contribution.
3. Pay off 2nd lien
4. Invest
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jeffyscott
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Re: Please help! Buyer's remorse, need advice

Post by jeffyscott »

I guess if it were me, it might depend on how much I could get for the truck. Maybe try and see how it goes? The right buyer might see getting a brand new truck for, say, 15% less than it'd cost them at a dealer as a great deal.

Though, I think it may be difficult to sell such an expensive vehicle privately, but then again, many people are in love with trucks right now because gas prices are low.
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Watty
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Re: Please help! Buyer's remorse, need advice

Post by Watty »

Ryanlion8506 wrote:I need your advice on should I sell privately and go get another car and write this off as a really dumb mistake, or keep truck and pay it off by January or February?
Sell it. Even if you had paid cash for it would still have been a mistake.

It also likely costs a lot more for gas and insurance so getting a more reasonable car will likely also save you money on those too.
Ron Ronnerson
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Re: Please help! Buyer's remorse, need advice

Post by Ron Ronnerson »

furnace wrote:1. Sell the truck and buy a used car.
2. Pay off student loans. Pause the 529 contribution.
3. Pay off 2nd lien
4. Invest
I agree with furnace on all suggestions. I would also recommend calculating how much less your pension would be at 55 vs. 60 if you haven't done so already. I'm a teacher and have seen many colleagues think they would retire in their mid 50s but delay for a few years after running the numbers. The reduction can be steep sometimes.
123
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Re: Please help! Buyer's remorse, need advice

Post by 123 »

I would think that Texas is probably the best place in the world to be in if you want to sell a truck.
The closest helping hand is at the end of your own arm.
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jeffyscott
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Re: Please help! Buyer's remorse, need advice

Post by jeffyscott »

Also, if or when there are no longer $5500 in rebates available, the discount that someone buying from you sees will be based on a much higher price. If, say, the current rebate were $2000 then a buyer is going to be comparing paying $38,000 at the dealer to, for example, $30,000 for your vehicle...that's a 21% discount.
servusdei
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Re: Please help! Buyer's remorse, need advice

Post by servusdei »

1. Sell the truck and buy a used car, or better yet, live closer to work and walk or bike instead.
2. Keep both the student loan (3.5% interest) and mortgage (4.5%). These rates are lower than the time value of money, what you can earn investing in the stock market.
3. Max out all the tax-sheltered accounts. Buy low fee index funds like VTSAX. Lower the expense ratio, the better. VTSAX is all you need.
4. Save aggressively and invest all excess cash flow (beyond maybe 3 months of expenses as cash cushion for liquidity) into VTSAX. Use taxable accounts once you have maxed out all tax-sheltered options.
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njboater74
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Re: Please help! Buyer's remorse, need advice

Post by njboater74 »

Consider the total cost of whatever decision you make.

What can you really get for your truck at this point? And what would you replace it with? I don't think we can divorce the 'depreciation of new autos' aspect of this conversation. That depreciation is going to affect your resale value. The difference between the resale value and the cost of a new car is what you hope to gain. How much can that actually be?

There are taxes and fees associated with any car purchase as well, so that's something to factor in as well.

You made a compulsive decision, the most economical thing may be to accept that decision, enjoy the truck as much as you can, and remember how you feel right now so that you don't do this again :wink:
When the mob and the press and the whole world tell you to move, your job is to plant yourself like a tree beside the river of truth and tell the whole world - 'No, YOU move'--Captain America, Boglehead
Topic Author
Ryanlion8506
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Re: Please help! Buyer's remorse, need advice

Post by Ryanlion8506 »

servusdei wrote:1. Sell the truck and buy a used car, or better yet, live closer to work and walk or bike instead.
2. Keep both the student loan (3.5% interest) and mortgage (4.5%). These rates are lower than the time value of money, what you can earn investing in the stock market.
3. Max out all the tax-sheltered accounts. Buy low fee index funds like VTSAX. Lower the expense ratio, the better. VTSAX is all you need.
4. Save aggressively and invest all excess cash flow (beyond maybe 3 months of expenses as cash cushion for liquidity) into VTSAX. Use taxable accounts once you have maxed out all tax-sheltered options.
Thanks, but no way we are "keeping" student loan when we can pay it off this August. It's been a part of me too dang long and it's going regardless of what math says. Much easier said than done regarding live closer to work and walk or bike. We love our house, great schools for my daughter, I work across town and it's extremely difficult getting jobs at schools where I live. Not to mention, I need a car. You must have missed the 2nd lien that's 6.25%, can you promise I'll get that in today's market? I didn't think so.
2Birds1Stone
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Re: Please help! Buyer's remorse, need advice

Post by 2Birds1Stone »

Ron Ronnerson wrote:
furnace wrote:1. Sell the truck and buy a used car.
2. Pay off student loans. Pause the 529 contribution.
3. Pay off 2nd lien
4. Invest
I agree with furnace on all suggestions. I would also recommend calculating how much less your pension would be at 55 vs. 60 if you haven't done so already. I'm a teacher and have seen many colleagues think they would retire in their mid 50s but delay for a few years after running the numbers. The reduction can be steep sometimes.
Great ideas here!
barnaclebob
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Re: Please help! Buyer's remorse, need advice

Post by barnaclebob »

What were your reasons for wanting the truck in the first place? How has that changed? Do you feel like it was a dumb purchase because you bought a new expensive truck...or i guess 34.5k is still cheap for a truck these days.

Maybe a used tacoma would get you the feeling of having made a wise purchase with the benefits of having the truck you originally wanted?
Topic Author
Ryanlion8506
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Re: Please help! Buyer's remorse, need advice

Post by Ryanlion8506 »

I appreciate all who have read and have helped comment. Well, many people here love the trucks with bigger tires and wheels, so that might do well privately. As far as trade, best I've been offered is 30k, no thanks. Just got approved now with credit union to refi and they waived the $70 processing fee, so I'm now at 1.9, lowering payment to 284, no payments for 90 if I choose.

Question? How much of a loss would you all be willing to take to rid truck and get good newer car? I'm not buying some old crapper.
barnaclebob
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Re: Please help! Buyer's remorse, need advice

Post by barnaclebob »

Ryanlion8506 wrote:I appreciate all who have read and have helped comment. Well, many people here love the trucks with bigger tires and wheels, so that might do well privately. As far as trade, best I've been offered is 30k, no thanks. Just got approved now with credit union to refi and they waived the $70 processing fee, so I'm now at 1.9, lowering payment to 284, no payments for 90 if I choose.

Question? How much of a loss would you all be willing to take to rid truck and get good newer car? I'm not buying some old crapper.
Only a 4.5k loss on a used truck with 2k miles seems like a pretty fair offer to me if you are really unhappy with the truck. If it was 30k for a trade you'll probably be able to get 32k private. It probably wont lose too much more value with another few thousand miles on it. Maybe drive it for a little longer and see if you are still unhappy. The truck will definitely cost more than 4.5k in gas and maintenance over its life relative to a car.
surfstar
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Re: Please help! Buyer's remorse, need advice

Post by surfstar »

I think its a requirement to own a truck if you live in TX, right? ;)

Can you justify it with household hauling needs?

Tough call - the deed is done, so selling now could cost you thousands. That is okay if you end up in a cheaper vehicle, but you're paying a "lesson tax".

See how much you could sell it for and then decide if its worth it. Or if you like it, keep it. Great, big, reminder sitting there in your driveway to fully think through financial decisions and avoid debt in the future...
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N1CKV
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Re: Please help! Buyer's remorse, need advice

Post by N1CKV »

Watty wrote:It also likely costs a lot more for gas and insurance so getting a more reasonable car will likely also save you money on those too.
Newer trucks in stock configuration get pretty decent fuel economy.
My 4X4 truck that is worth almost double as much as my wife's sedan is cheaper to insure. Trucks are almost always cheaper to insure that cars by a good bit.

OP:
Do you have a need for a truck?
What does the truck do for you that you couldn't do before?
How about selling / trading the oversized tires and removing the level kit to save fuel economy?

Not everyone can be happy driving a Prius or a Civic. I have a full size 4X4 (lifted, larger aggressive tires) that I bought when I had a need for that (travel on logging roads), I no longer do that, but I can't justify trading it in because I still have needs for a truck (tow/haul), just not one this large and mid/small trucks are almost as much as a large truck.
servusdei
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Re: Please help! Buyer's remorse, need advice

Post by servusdei »

Ryanlion8506 wrote:
servusdei wrote:1. Sell the truck and buy a used car, or better yet, live closer to work and walk or bike instead.
2. Keep both the student loan (3.5% interest) and mortgage (4.5%). These rates are lower than the time value of money, what you can earn investing in the stock market.
3. Max out all the tax-sheltered accounts. Buy low fee index funds like VTSAX. Lower the expense ratio, the better. VTSAX is all you need.
4. Save aggressively and invest all excess cash flow (beyond maybe 3 months of expenses as cash cushion for liquidity) into VTSAX. Use taxable accounts once you have maxed out all tax-sheltered options.
Thanks, but no way we are "keeping" student loan when we can pay it off this August. It's been a part of me too dang long and it's going regardless of what math says. Much easier said than done regarding live closer to work and walk or bike. We love our house, great schools for my daughter, I work across town and it's extremely difficult getting jobs at schools where I live. Not to mention, I need a car. You must have missed the 2nd lien that's 6.25%, can you promise I'll get that in today's market? I didn't think so.
Well, life is full of choices, and sometimes one has to make some tough choices in life.

Your second lien is only about 20% of the the total mortgage value, so the weighted average interest rate on your mortgage is only about 4.5% ((429*4.25+46*6.25)/475=4.44). If you don't think you can earn 6.25%, and it's possible to pay off only second lien, consider paying that off first. It doesn't help earning a lower interest rate (which is essentially what you do by paying off low interest rate debt), while simultaneously paying a higher interest rate (which is the opportunity cost of investing the money in the stock market instead). The stock market does not promise anything, but if the past 200+ years of stock market history is any guide, it will deliver average annualized return of around 10% a year over the long run (20+ years). Hope this helps and good luck!
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tyrion
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Re: Please help! Buyer's remorse, need advice

Post by tyrion »

If you don't need the truck then yes, sell it and replace it with something more practical. Take your lumps and move on.

I think the bigger issue here preventing future impulse purchases. Did you buy it without telling your wife? Or was she okay with the purchase?

We have a system in our house where any purchase over $X needs to be agreed upon. 'X' is a little vague but probably in the $400-500 range. If she wants to buy new clothes for the kids for $100, no problem. If I want to buy a new umbrella for the table outdoors, no problem. But once it reaches a certain level, there needs to be prior agreement to make the purchase.
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bottlecap
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Re: Please help! Buyer's remorse, need advice

Post by bottlecap »

I'd just take it easy. There is no hurry to get rid of the truck just yet - that decision has already been made. Do you really not like it, or are you beginning not to like it because it doesn't seem like it was as good of a move as you thought?

What's done is done, slow down and don't compound things.

Then, figure out what you would like to drive/own. If it's not this truck, then figure out if you'd be okay with something used. If so, see if you can find something for a price that makes sense. Then sell the existing truck.

The first thing is figuring out what you want. The next is trying to find something that is what you want that makes financial sense.

JT
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Ryanlion8506
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Re: Please help! Buyer's remorse, need advice

Post by Ryanlion8506 »

Ok, I get it...huge reminder in driveway, maybe that's why I want to rid it! Lol.

Need/Want: I convinced myself I needed one after I had neighbor drive me 10 miles out to tractor supply to get my garage gym horse stall mats. And yea, nice to be able to throw leaf bags in or if you make bed purchase, etc... I don't pull anything, don't use it for work, bed is clean, city boy driving big boy truck.

Tacoma: I originally wanted one until I saw how much they charge for small truck.

Cost to insure and gas: To person who said cheaper to insure than sedans, where do you live?! My premium went up about $25 month from my 2015 sedan. Gas, 17-18 mpg at most. I'm not paying to remove level kit and tires.

Wife: Yes, I discuss almost all $$ decisions. She knew, but wasn't excited.
Topic Author
Ryanlion8506
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Re: Please help! Buyer's remorse, need advice

Post by Ryanlion8506 »

bottlecap wrote:I'd just take it easy. There is no hurry to get rid of the truck just yet - that decision has already been made. Do you really not like it, or are you beginning not to like it because it doesn't seem like it was as good of a move as you thought?

What's done is done, slow down and don't compound things.

Then, figure out what you would like to drive/own. If it's not this truck, then figure out if you'd be okay with something used. If so, see if you can find something for a price that makes sense. Then sell the existing truck.

The first thing is figuring out what you want. The next is trying to find something that is what you want that makes financial sense.

JT
Great advice. There are things I like and things I don't, it just feels huge and lethargic. Pain in butt to park, too much for a guy driving solo 95% of time. Just out of character for me.
rgs92
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Re: Please help! Buyer's remorse, need advice

Post by rgs92 »

You have a secure job and a nice coat-of-living state pension coming down the road that will be easily be worth the equivalent of a couple of million when you retire. Whatever you do or lose with this little car transaction is as significant as a gnat. Do whatever you want and stay cool and relax and enjoy life because you have already won the equivalent of the career lottery compared to the many professionals in the workforce today or those who were fired. $20 or $30 grand means nothing from this perspective.
Last edited by rgs92 on Tue Jun 28, 2016 11:36 am, edited 2 times in total.
Texanbybirth
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Re: Please help! Buyer's remorse, need advice

Post by Texanbybirth »

Ryanlion8506 wrote:
bottlecap wrote:I'd just take it easy. There is no hurry to get rid of the truck just yet - that decision has already been made. Do you really not like it, or are you beginning not to like it because it doesn't seem like it was as good of a move as you thought?

What's done is done, slow down and don't compound things.

Then, figure out what you would like to drive/own. If it's not this truck, then figure out if you'd be okay with something used. If so, see if you can find something for a price that makes sense. Then sell the existing truck.

The first thing is figuring out what you want. The next is trying to find something that is what you want that makes financial sense.

JT
Great advice. There are things I like and things I don't, it just feels huge and lethargic. Pain in butt to park, too much for a guy driving solo 95% of time. Just out of character for me.
I made your same mistake 4 years ago. I'm in TX too, so I can understand the desire for a truck. I've been here my whole life, they've always been ubiquitous and I thought that's what everyone drove. I got a beautiful, shiny new red F-150 FX4. It actually wasn't my first ride, but it was my first "big boy" decision, and it fell flat on my face. The pmts sucked, and insurance/gas was brutal. I now drive a Toyota Yaris - my wife's originally, but we bought her a newer car with cash from the sale of my truck. I commute along, and I do miss the truck about once a week. It was a comfy, very nice ride to roll around in - and my wife loved it! - but there's no comparison when we're filling up both cars for <$25 TOTAL. I'm also making a better decision for my whole family now. I wasn't married when I bought it.

I'd analyze the sale to get you back into a reasonable car for a solo commuter like yourself. We pay ourselves a car pmt every month, and it's really feeling like it'll finally pay off when we buy a new van sometime between baby #2 and #3 with CASH. I recommend you do the same.

Slay those silly student loans before summer is over. (It sounds like you're both teachers: God bless you from a teacher's son.) Then switch to killing that second lien, and then invest the remainder. Maxing your tax-deferred would seem to be the ideal strategy, but if you're intent on not sticking it out until 60 - which should really be considered the new 40 and you could get a truck then if you stuck it out for 5 more years - you might have to look into taxable investing. That way you can fund your expenses until 59.5. Is your wife on board with you giving up 5 years before full pension? After seeing my dad's pension statements from TRS, the 5 years could really make a big difference for your whole family.
“The strong cannot be brave. Only the weak can be brave; and yet again, in practice, only those who can be brave can be trusted, in time of doubt, to be strong.“ - GK Chesterton
Ron Ronnerson
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Re: Please help! Buyer's remorse, need advice

Post by Ron Ronnerson »

Your rate on the 2nd lien is much higher than the student loan rate. I would keep the student loan as long as possible and direct extra money toward paying off the 2nd lien. If you really dislike having the student loan, you can focus on that but should understand that you'll end up paying more in interest overall.
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Ryanlion8506
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Re: Please help! Buyer's remorse, need advice

Post by Ryanlion8506 »

Texanbybirth wrote:
Ryanlion8506 wrote:
bottlecap wrote:I'd just take it easy. There is no hurry to get rid of the truck just yet - that decision has already been made. Do you really not like it, or are you beginning not to like it because it doesn't seem like it was as good of a move as you thought?

What's done is done, slow down and don't compound things.

Then, figure out what you would like to drive/own. If it's not this truck, then figure out if you'd be okay with something used. If so, see if you can find something for a price that makes sense. Then sell the existing truck.

The first thing is figuring out what you want. The next is trying to find something that is what you want that makes financial sense.

JT
Great advice. There are things I like and things I don't, it just feels huge and lethargic. Pain in butt to park, too much for a guy driving solo 95% of time. Just out of character for me.
I made your same mistake 4 years ago. I'm in TX too, so I can understand the desire for a truck. I've been here my whole life, they've always been ubiquitous and I thought that's what everyone drove. I got a beautiful, shiny new red F-150 FX4. It actually wasn't my first ride, but it was my first "big boy" decision, and it fell flat on my face. The pmts sucked, and insurance/gas was brutal. I now drive a Toyota Yaris - my wife's originally, but we bought her a newer car with cash from the sale of my truck. I commute along, and I do miss the truck about once a week. It was a comfy, very nice ride to roll around in - and my wife loved it! - but there's no comparison when we're filling up both cars for <$25 TOTAL. I'm also making a better decision for my whole family now. I wasn't married when I bought it.

I'd analyze the sale to get you back into a reasonable car for a solo commuter like yourself. We pay ourselves a car pmt every month, and it's really feeling like it'll finally pay off when we buy a new van sometime between baby #2 and #3 with CASH. I recommend you do the same.

Slay those silly student loans before summer is over. (It sounds like you're both teachers: God bless you from a teacher's son.) Then switch to killing that second lien, and then invest the remainder. Maxing your tax-deferred would seem to be the ideal strategy, but if you're intent on not sticking it out until 60 - which should really be considered the new 40 and you could get a truck then if you stuck it out for 5 more years - you might have to look into taxable investing. That way you can fund your expenses until 59.5. Is your wife on board with you giving up 5 years before full pension? After seeing my dad's pension statements from TRS, the 5 years could really make a big difference for your whole family.

Well, I'm only 37, so I have a ways before pension decisions, lol. It's just a goal and I'm totally willing to go to 60 if necessary because I really enjoy what I do and feel blessed. We have a 10 year written plan and after 2nd lien is paid with no auto, student loans which is very near, we will be saving car fund, vacation fund, daughters 529, more in retirement funds and have 6 month expenses put back. Yea, if I was willing to drive Yaris I would save huge. My wife drives paid for Toyota Prius C and loves it, but too small for me. I'm looking at Camry, Mazda 6 like I had, Honda Accord. Need something big enough and comfortable enough for road trips.

Thanks!
Texanbybirth
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Re: Please help! Buyer's remorse, need advice

Post by Texanbybirth »

With only one child, all of those cars would be perfectly fine. We took the Yaris on a 4-hour road trip for Memorial Day wknd. Sounds like you're bigger than me: I'm 5'10" and wife is 5'6". I can understand the need for a larger car. With only one kid right now, we were all comfortable for the drive. (#2 is on the way so he's always sitting with morm.) Anymore kids and the backseat might have been a little more packed. People do it, though, when that's all they have.

I don't want to sound like a Yaris apologist, but from a former truck guy (and still truck-loving guy) to another: yeah, the truck sounds like it really has to go. 8-)

Good job having a written plan! Sounds like you're recovering from some past mistakes, but have a bright future ahead you really shouldn't beat yourself up. 10 years from now you'll be thanking your sacrificial present self. :sharebeer
“The strong cannot be brave. Only the weak can be brave; and yet again, in practice, only those who can be brave can be trusted, in time of doubt, to be strong.“ - GK Chesterton
Smurf
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Re: Please help! Buyer's remorse, need advice

Post by Smurf »

I commute to a city in a crew cab Ram 1500 and there is no denying it's a PITA sometimes. You will have to make adjustments like avoiding tight parking garages, uturns, etc. However, I work to support my family and hobbies and my truck allows me to do those hobbies. If my hobby was commuting then a sedan would be perfect!

You bought the truck for a reason and life in a sedan is not necessarily better. If you sell the truck the next time you need to haul something you will wish you'd have kept the truck. Think about this, how are you going to bring home those craigslist items for your home gym? A power rack on a Camry is a bad look. You now have a comfortable vehicle that can do it all from hauling, road trips, and commuting. Enjoy it.
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jeffyscott
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Re: Please help! Buyer's remorse, need advice

Post by jeffyscott »

barnaclebob wrote:
Ryanlion8506 wrote:I appreciate all who have read and have helped comment. Well, many people here love the trucks with bigger tires and wheels, so that might do well privately. As far as trade, best I've been offered is 30k, no thanks. Just got approved now with credit union to refi and they waived the $70 processing fee, so I'm now at 1.9, lowering payment to 284, no payments for 90 if I choose.

Question? How much of a loss would you all be willing to take to rid truck and get good newer car? I'm not buying some old crapper.
Only a 4.5k loss on a used truck with 2k miles seems like a pretty fair offer to me if you are really unhappy with the truck. If it was 30k for a trade you'll probably be able to get 32k private. It probably wont lose too much more value with another few thousand miles on it. Maybe drive it for a little longer and see if you are still unhappy. The truck will definitely cost more than 4.5k in gas and maintenance over its life relative to a car.
I agree, getting $30K hassle free by trading it is better than I'd have expected. What would renting a truck like that for 3 months have cost? $3K??? If something like that, he's effectively out of it for only an extra $1500.

Keeping has some risk, suppose it's damaged in a collision, after being repaired it'll still probably have diminished value.
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sunny_socal
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Re: Please help! Buyer's remorse, need advice

Post by sunny_socal »

If I lived near you, we'd go have a couple beers, maybe a few. And then I would say:
- I would much rather have that big truck than that sedan! Nice ride.
- You'll have large transaction costs if you sell it and buy another car. Thousands down the drain - for what?
- That truck will last you a long time, just take care of it and enjoy it

If there was a mistake, it was buying the sedan. I've done similar things and I've learned this about myself - if I 'settle' too much, I won't be happy.
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Ryanlion8506
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Re: Please help! Buyer's remorse, need advice

Post by Ryanlion8506 »

Great points by all! Love all the drastically different takes, although it makes me even more confused.

Here's how it really started for those who care. When I had my nice 2015 paid for sedan I said man I've always wanted a truck, but really just an old truck to haul brush and stuff when necessary, not a fancy decked out truck as my daily commuter. I would have loved to of had kept my car and just got an older truck, and looking back I could have! My wife really doesn't want a truck and another car in driveway, our garage is a really nice gym. And by the way, I won't ever need a power rack, I have a Rogue made in USA all steel rack decked out that will easily outlive me.
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Ryanlion8506
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Re: Please help! Buyer's remorse, need advice

Post by Ryanlion8506 »

rgs92 wrote:You have a secure job and a nice coat-of-living state pension coming down the road that will be easily be worth the equivalent of a couple of million when you retire. Whatever you do or lose with this little car transaction is as significant as a gnat. Do whatever you want and stay cool and relax and enjoy life because you have already won the equivalent of the career lottery compared to the many professionals in the workforce today or those who were fired. $20 or $30 grand means nothing from this perspective.
Lol, state pension worth couple million?? Where are you getting those numbers? Highly doubtful, just like so many people in private sector think we teachers get same benefits as federal employees, sadly mistaken.
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Ryanlion8506
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Re: Please help! Buyer's remorse, need advice

Post by Ryanlion8506 »

sunny_socal wrote:If I lived near you, we'd go have a couple beers, maybe a few. And then I would say:
- I would much rather have that big truck than that sedan! Nice ride.
- You'll have large transaction costs if you sell it and buy another car. Thousands down the drain - for what?
- That truck will last you a long time, just take care of it and enjoy it

If there was a mistake, it was buying the sedan. I've done similar things and I've learned this about myself - if I 'settle' too much, I won't be happy.
Not sure about truck, but I'll take you up on cold beer. :sharebeer
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Ryanlion8506
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Re: Please help! Buyer's remorse, need advice

Post by Ryanlion8506 »

jeffyscott wrote:
barnaclebob wrote:
Ryanlion8506 wrote:I appreciate all who have read and have helped comment. Well, many people here love the trucks with bigger tires and wheels, so that might do well privately. As far as trade, best I've been offered is 30k, no thanks. Just got approved now with credit union to refi and they waived the $70 processing fee, so I'm now at 1.9, lowering payment to 284, no payments for 90 if I choose.

Question? How much of a loss would you all be willing to take to rid truck and get good newer car? I'm not buying some old crapper.
Only a 4.5k loss on a used truck with 2k miles seems like a pretty fair offer to me if you are really unhappy with the truck. If it was 30k for a trade you'll probably be able to get 32k private. It probably wont lose too much more value with another few thousand miles on it. Maybe drive it for a little longer and see if you are still unhappy. The truck will definitely cost more than 4.5k in gas and maintenance over its life relative to a car.
I agree, getting $30K hassle free by trading it is better than I'd have expected. What would renting a truck like that for 3 months have cost? $3K??? If something like that, he's effectively out of it for only an extra $1500.

Keeping has some risk, suppose it's damaged in a collision, after being repaired it'll still probably have diminished value.

Yea, but 30k is a lot of stupid tax to pay! Remember, factor in tires, level as well. :oops:
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Toons
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Re: Please help! Buyer's remorse, need advice

Post by Toons »

furnace wrote:1. Sell the truck and buy a used car.
2. Pay off student loans. Pause the 529 contribution.
3. Pay off 2nd lien
4. Invest
+1
Thanks what I like.
Clear.
Logical Steps.
To The Point.
It really isn't complicated :happy :happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
Texanbybirth
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Re: Please help! Buyer's remorse, need advice

Post by Texanbybirth »

You're also right on the cusp of the 15% tax bracket after some quick calcs on taxcaster (https://turbotax.intuit.com/tax-tools/c ... taxcaster/). I guess with your pension you're assuming your income in retirement will be more than it is now, which may very well be true. However, funneling one of those maxed out Roth's contributions to your or your wife's 403(b) might also save you some taxes now.

EDIT: Sorry I transposed 120k for 102k of income. Nevermind! :oops:
“The strong cannot be brave. Only the weak can be brave; and yet again, in practice, only those who can be brave can be trusted, in time of doubt, to be strong.“ - GK Chesterton
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Ryanlion8506
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Re: Please help! Buyer's remorse, need advice

Post by Ryanlion8506 »

Texanbybirth wrote:You're also right on the cusp of the 15% tax bracket after some quick calcs on taxcaster (https://turbotax.intuit.com/tax-tools/c ... taxcaster/). I guess with your pension you're assuming your income in retirement will be more than it is now, which may very well be true. However, funneling one of those maxed out Roth's contributions to your or your wife's 403(b) might also save you some taxes now.

EDIT: Sorry I transposed 120k for 102k of income. Nevermind! :oops:
Pretty sure 102k is not 15% either. Thanks. Why would we ever funnel money from Roth? We already paid tax on it, it's 100% tax free after 59.5.
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Ryanlion8506
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Re: Please help! Buyer's remorse, need advice

Post by Ryanlion8506 »

Texanbybirth wrote:You're also right on the cusp of the 15% tax bracket after some quick calcs on taxcaster (https://turbotax.intuit.com/tax-tools/c ... taxcaster/). I guess with your pension you're assuming your income in retirement will be more than it is now, which may very well be true. However, funneling one of those maxed out Roth's contributions to your or your wife's 403(b) might also save you some taxes now.

EDIT: Sorry I transposed 120k for 102k of income. Nevermind! :oops:
Sorry, I see what you mean.
LadyIJ
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Re: Please help! Buyer's remorse, need advice

Post by LadyIJ »

Okay, a couple of months ago I posted about buying the wrong car and knew it right away. I got tons of responses and my head was spinning. I had an old Honda Accord that I LOVED and convinced myself I needed a new car before I really did, and bought a tad smaller, sportier Acura (certified pre-owned). Well I thought I wanted to ditch the car after the first 15 days and felt sick to make a mistake like that. I missed my old one, I knew that I would lose a couple of thousand making a trade, and then have to pony up more money to trade up to a larger Lexus. I thought the car seats were killing my back . . . yada yada. I settled down, and I discovered that I have adjusted to the seats - now I love the car. Oh, I think I will trade it in down the line for a larger Lexus, BUT, a few responses did tell me to slow down, and I think that's wise. Let the dust settle, enjoy the truck for awhile while you think carefully about what you may trade it in for down the line - no sense in being hasty again - you will lose some money now or later making a trade most likely, and it's not going to affect your future. I vote on losing the money later - lol
LarryAllen
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Re: Please help! Buyer's remorse, need advice

Post by LarryAllen »

Sell the truck and punish yourself for the mistake by buying an old piece of crap. Ok, I am half joking but don't do it again. Many of us have made that exact same mistake... and some of us more than once... but eventually many people learn that a new car just isn't worth it. I am a car guy but the reality is it just doesn't matter. I drive a 9 year old car now and LOVE it! I laugh at people smiling in their brand new Lexus/BMW/etc.... I could buy one cash but then what? Does it change who I am? Heck no.

It sounds like you are thinking clearly now and heading in the right direction.

Good luck.
antiqueman
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Re: Please help! Buyer's remorse, need advice

Post by antiqueman »

It appears to me that you are very upset about getting rid of your sedan. My concern would be that you will never be happy with the truck regardless of how long it last and even if it performs well.


I would take the truck to CarMax to see what it would pay you for it. It has been my experience that CarMax beats most dealers. You can at least good a good idea of what it would bring. Then try sell it to a private individual if you don't want to sale to CarMax.

If you sale the truck you will almost for certain take a loss. But you may have more than a loss from an emotional standpoint over the years if you keep it , all the while not liking it. We pay money for college and other education. Chalk this up as the cost of learning something , and also taking the angst out of your life.


I have made many mistakes before with finances. I bought stuff I shouldn't and have sold it when I realized I made a mistake. It stings for a while but after time it doesn't sting as bad. In the long run I doubt you will miss , from a financial standpoint, whatever this lesson cost you.


I wish you well.
Luke Duke
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Re: Please help! Buyer's remorse, need advice

Post by Luke Duke »

barnaclebob wrote:
Ryanlion8506 wrote:I appreciate all who have read and have helped comment. Well, many people here love the trucks with bigger tires and wheels, so that might do well privately. As far as trade, best I've been offered is 30k, no thanks. Just got approved now with credit union to refi and they waived the $70 processing fee, so I'm now at 1.9, lowering payment to 284, no payments for 90 if I choose.

Question? How much of a loss would you all be willing to take to rid truck and get good newer car? I'm not buying some old crapper.
Only a 4.5k loss on a used truck with 2k miles seems like a pretty fair offer to me if you are really unhappy with the truck. If it was 30k for a trade you'll probably be able to get 32k private. It probably wont lose too much more value with another few thousand miles on it. Maybe drive it for a little longer and see if you are still unhappy. The truck will definitely cost more than 4.5k in gas and maintenance over its life relative to a car.
Keep in mind that if you sell it privately, you will have to pay sales tax on the entire purchase price of your next vehicle. That would be over $1500 for a $25K car. It is probably not worth your time or energy to sell it yourself to make an extra $3-$400.

I would keep the truck, but I also have a use for a truck.
tbradnc
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Re: Please help! Buyer's remorse, need advice

Post by tbradnc »

surfstar wrote:I think its a requirement to own a truck if you live in TX, right? ;)

Can you justify it with household hauling needs?

Tough call - the deed is done, so selling now could cost you thousands. That is okay if you end up in a cheaper vehicle, but you're paying a "lesson tax".

See how much you could sell it for and then decide if its worth it. Or if you like it, keep it. Great, big, reminder sitting there in your driveway to fully think through financial decisions and avoid debt in the future...
Yep.. I did the same thing with a Jeep a few years ago. Bought it and before the dealership was out of the rear view mirror I knew I'd screwed up royally.

But.... I *do* need 4WD 2-3 times a year and it was cool as heck as soon as I put big tires, new wheels, winch, etc. on it. :)
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Ryanlion8506
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Re: Please help! Buyer's remorse, need advice

Post by Ryanlion8506 »

Wow! A lot of great people with great, considerate posts. All I can say is thank you all and wouldn't mind to here more. Maybe this is my healthy, free counseling session. :happy

I know about the tax deal with trade here. One guy at Toyota is trying hard to use that as his bargaining chip, not working. My personal one time experience with Car Max was crappy, they offered less than Mazda by 2k. I don't have any intentions on losing a boat load to rid my truck. There are many things I do like, and I just refinanced today at credit union for 1.9, dropping payment. I only owe 16k, we can pay off quick.

- Pay off truck in 5-6 months after s. Loan and keep new truck?
- Drive 6 months and pay off, then sell and buy car?
- Sell now and take big loss and only have 14-15k towards next car?
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jeffyscott
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Re: Please help! Buyer's remorse, need advice

Post by jeffyscott »

Ryanlion8506 wrote:- Pay off truck in 5-6 months after s. Loan and keep new truck?
- Drive 6 months and pay off, then sell and buy car?
- Sell now and take big loss and only have 14-15k towards next car?
You seem to think there is a difference between the second two, I don't see it. If you are going to get rid of the truck, I think it makes little difference whether you do it now or in 6 months.

If you do it now, you get $30,000 for it, you pay off the $16K. Then if you by a new car for, say $25K, you put $14,000 down and owe $11,000 ($5000 less than you owed before) which you can then pay off in a few months. After 5-6 months you are $5000 ahead.

If you pay off the truck first (assuming you would still get $30,000 5-6 months from now), you now have $30,000. Spend $25K on a new car and you have $5,000 left, same as above.

BTW, did the dealer sell your trade in yet? If not, perhaps you could buy your own used car back :) .

If gas prices go up, truck prices will probably go down again and prices of fuel efficient cars will go up. People are foolish and base long term decisions like what vehicle to buy on gas prices that they saw last week. While demand for trucks may be more constant in Texas, I'd guess the manufacturer's incentives and used vehicle prices are still affected by the national market. OTOH, maybe oil prices also have the opposite effect in Texas, higher oil prices would be an economic boost?
Yea, but 30k is a lot of stupid tax to pay! Remember, factor in tires, level as well.
The "stupid tax" would be $4500, plus whatever you spent to apparently replace brand new tires with other brand new tires (and bigger wheels?). I have no idea what you mean by "level", but then I hate trucks and drive a Mazda6 sedan and my wife has a sedan as well. It is a hard, difficult life having only sedans :wink: . We've endured horrors like borrowing a relative's minivan, paying delivery charges, and having craigslist sellers deliver merchandise we bought from them.
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sunny_socal
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Re: Please help! Buyer's remorse, need advice

Post by sunny_socal »

jeffyscott wrote:We've endured horrors like borrowing a relative's minivan, paying delivery charges, and having craigslist sellers deliver merchandise we bought from them.
I know jeffyscott is only joking, but he lists the biggest reasons for having a truck: they can do everything! I vote keep the truck.

Remember, "Buy once, cry once." Right now you're in the crying phase. Dry your eyes, pay it off and 6 months from now you will be in great shape. Just don't turn around and buy another car at that point - constant flipping of cars is the bad thing due to the transaction costs, not the car itself.
tim1999
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Re: Please help! Buyer's remorse, need advice

Post by tim1999 »

Keep the truck. You are going to take a bath on it if you try to sell it now. Private parties won't buy yours vs. new unless there is a large discount, and dealers buy for wholesale price. You need something to drive regardless, this is a meaningless event in the big picture of your life. I'd be more concerned about getting rid of that second lien on the house, but it would be good to pay off the truck loan early too. Any other vehicle you buy, you are going to be paying retail price again, paying sales tax, etc.
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Ryanlion8506
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Re: Please help! Buyer's remorse, need advice

Post by Ryanlion8506 »

Thank you all who have continued this small, but frustrating first world problem. I've obviously been thinking about it a lot and if I could go back I would have bought a truck, just not a huge full size truck. I would have bought a Toyota Tacoma most likely. The money is jot an issue when we can pay the payment and still dish out almost 3k month towards debt. This payment or one in near future will be eradicated in no time at end of the day.

So, I've been talking with Toyota on phone and told them exactly what I want and how much I am willing to owe and said I'm very prepared to walk if we can't make it happen. I want a Tacoma double cab. That's what I wanted at start, but let others around me convince me I "needed" a bigger truck. We do "need" a truck at times. My neighborhood is a pain in butt getting rid of leaf bags. We live in neighborhood with many trees which are beautiful until they shed, month after month. We can unload truck load of leaf bags for $2 down road....if you have truck :D Not to mention this weekend, going to Grandmas to pick up wooden bed frames too long to go in any car. Mid size trucks do job, Tacomas last, and don't feel so damn huge!

I'll fill you in, please wish me luck.
TOJ
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Re: Please help! Buyer's remorse, need advice

Post by TOJ »

Well I would say "downsizing" to a slightly smaller truck that gets less than 10% more mileage at nearly the same price is not a good idea.
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Animal House
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Re: Please help! Buyer's remorse, need advice

Post by Animal House »

You will take a bath either on the trade value or on what you pay on the next vehicle. That is just the way it is. Give it a couple of months. Use the truck and you will get used to the size and it won't seem so big or lethargic. I have moved between cars and trucks most of my life. The transition to a truck is always the harder of the two. A couple of months and you will probably look back on this and wonder what the "big" deal was :)
“A person needs a little madness, or else they never dare cut the rope and be free.” | ― Nikos Kazantzakis
stoptothink
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Re: Please help! Buyer's remorse, need advice

Post by stoptothink »

TOJ wrote:Well I would say "downsizing" to a slightly smaller truck that gets less than 10% more mileage at nearly the same price is not a good idea.
This. I love Tacomas, but they are VERY expensive for what they are. I'd be shocked if you ultimately saved anything by swapping. If you feel like you need a truck, just keep the one you have.
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