View Poll Results: How much did you put down on your truck?
Nothing. (promo offer, etc)
42
13.33%
Less than 10%
33
10.48%
10%-25%
69
21.90%
25%-50%
28
8.89%
more than 50%
26
8.25%
Paid Cash
117
37.14%
Voters: 315. You may not vote on this poll
How much debt are people carrying over their trucks?
09-25-2007, 11:12 AM
#31
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My truck will be paid for this winter after 3 years of a 4 year loan and my plan is for it to be my last vehicle payment ever. I don't mind borrowing money for a home or something that either increases in value or generates income (as a farmer I have alot of business debt) and even though I use my truck in the business it's not directly generating much income and it's loosing value every day. About six months after I bought my truck I started listening to Dave Ramsey on the radio and after I got past the point where I thought he was nuts it really changed my thinking on borrowing money and I think his book "The Total Money Makeover" should be mandatory reading for every person before they can graduate from high school.
09-25-2007, 12:57 PM
#32
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I sold my 96 outright to a private individual. Bought the 01 new and got the promo rate of .9 for 36 months. I rolled everything into the loan taxes etc. The loan payment was 950ish a month. I took the money from the sale of the 96 and put it in quite a few different cds so that one termed every 3 months. Then when that cd termed I would use one third of it each month towards the payment which equaled about 1/2 the truck payment and made up the rest. Then the next cd termed and continued the cycle. The rate on the cd's was over 5% at the time. So after all was said and done the interest that I had earned on the cd's came to over 1.5 truck payments and that is after accounting for the interest paid on the truck loan and was also over and above what I would have saved in interest by just putting it all down at once at the time of the sale. Nothing like using someone elses money. Was it a pain in the rump to mess with it, a bit but was it worth 1500.00, yes.
09-25-2007, 01:06 PM
#33
DTR 1st Sergeant
I can't buy unless I feel like I got a deal. I bought an Escalade truck before they were popular and put 15% down with 60 month 0% financing and it was 12K below the sticker price. I got the Caddy cheaper than I could get a diesel and that is no lie. I spent 2 months trying. I paid it off and traded it for my current truck, which I got for 10k below sticker and a 4.5% loan for the rest. I paid it off early and don't plan on a new one for a few years. My wifes car is old but in good shape and she loves it. It has been paid for for quite awhile although expensive when new.
09-29-2007, 08:45 PM
#36
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I bought my truck new, and paid cash the day I took it home. This truck could out last me. I am just now coming off of a 12000 mile RV trip and this truck has done everything I have ask of it. DODGE is a great truck.
09-29-2007, 10:26 PM
#38
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Traded my 99' in on the 07' in January, financed $24k at a reasonable rate (I think 5.7%) for 4 years. I'm down to owing $20k now, plan on hammering down the debt with my tax return this spring and maybe paying it off by the end of 08'.
I hate having a truck payment.
I hate having a truck payment.
09-29-2007, 11:17 PM
#39
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Something else to look at as well, I am a Geotech Engineer and am paid .48 per mile to use my truck. I put on roughly a 1k miles a week. So at 480 times 4 weeks =1920 Truck payment- 315 insurance - 85 fuel- 600 money left over= $920 Out of that 920 i put half in savings for unforseen vehicle problems such as my vp44 which was ordered yesterday and the other half goes back into the truck like wheels tires tint chips all the good stuff and than i live off of my normal wage to pay other bills.
09-30-2007, 12:33 AM
#40
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well stated!
I've always had a rule about not ever buying a vehicle unless you are able to pay cash. if you can't come up with the cash, then you can't afford it. there's always plenty of other choices on vehicle you can afford.
please don't get me wrong... not all loans are bad.
loans paying on depreciating assets are.
it's extremely difficult to buy vehicles that go up in value. vs it's easy to buy real property that goes up in value.
monthly cash flow should be reserved for mortgage payments. which is an appreciating asset. that's how you build up your long term net worth. economics 101..
note these comments don't apply to commercial applications. where truck/equipment is bringing in more income than costs to service debt.
I've always had a rule about not ever buying a vehicle unless you are able to pay cash. if you can't come up with the cash, then you can't afford it. there's always plenty of other choices on vehicle you can afford.
please don't get me wrong... not all loans are bad.
loans paying on depreciating assets are.
it's extremely difficult to buy vehicles that go up in value. vs it's easy to buy real property that goes up in value.
monthly cash flow should be reserved for mortgage payments. which is an appreciating asset. that's how you build up your long term net worth. economics 101..
note these comments don't apply to commercial applications. where truck/equipment is bringing in more income than costs to service debt.
09-30-2007, 12:11 PM
#41
Registered User
I purchased both trucks new, one w/50% down, the other with zero down, and paid off early. Since the trucks produce income, I don't bother with interest rates because I know I'll be using cash flow to prepay the loans. I've always rolled all net income back into the biz to accelerate growth - haven't had a paycheck since 1998!
Entrepreneurs & small businesses tend to suffer from undercapitalization if they want to maintain control over their products and services... and as a recovered Anal-Retentive Perfectionist, I choose My Way since everyone else likes it so much better than the Highway!
... but seriously folks, ARP syndrome is nothing to laugh at.
Entrepreneurs & small businesses tend to suffer from undercapitalization if they want to maintain control over their products and services... and as a recovered Anal-Retentive Perfectionist, I choose My Way since everyone else likes it so much better than the Highway!... but seriously folks, ARP syndrome is nothing to laugh at.
09-30-2007, 02:15 PM
#42
Registered User
My last three truck purchases were brand new but I don't think I will do it again. The diesels hold value pretty well but you are taking a pretty big hit the first couple years.
I paid my truck off this month, and even though it was a year early the interest paid was ridiculous. Next month I will start saving toward my next vehicle so that I can pay cash. My only payment now is the house.
I paid my truck off this month, and even though it was a year early the interest paid was ridiculous. Next month I will start saving toward my next vehicle so that I can pay cash. My only payment now is the house.
09-30-2007, 02:24 PM
#43
Registered User
Something else to look at as well, I am a Geotech Engineer and am paid .48 per mile to use my truck. I put on roughly a 1k miles a week. So at 480 times 4 weeks =1920 Truck payment- 315 insurance - 85 fuel- 600 money left over= $920 Out of that 920 i put half in savings for unforseen vehicle problems such as my vp44 which was ordered yesterday and the other half goes back into the truck like wheels tires tint chips all the good stuff and than i live off of my normal wage to pay other bills.
09-30-2007, 08:55 PM
#45
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AMEN! My truck is a lease @ 0% it is considered a 100% business expense, whne the truck comes to term I will buy it out at 6% . I could not replace the same truck for what the buyout is. At that time the the truck stays a 100% business expense because I own a another vehicle for home use. With what these trucks cost and they aren't going down in price anytime soon the extra expense to go to diesel and to keep the truck for as long as the wheels turn as well as keeping your maintenance cost down as possible ( insert Cummins here) is the absolute key. Trading up every couple years is a waste of time and money if you have lots of both go and buy a SuperDuty.