Thursday, July 17, 2014

Back in Debt

I almost feel a little bad for posting this after the comments on my previous post but here goes.

Y bought a new to him pickup yesterday, a 2012 Dodge Ram. He traded in his pickup. Here are the numbers:
Price of new pickup $30,000 plus $1540 in taxes and registration
trade in $4000
credit card $2000
cash down $10,000
financed $15,540 at 2.66% for 48 months, payment of $342.03

Yes, we were debt free for one day. I'm not going to focus on paying this off right away. I want to build wealth by investing instead. More to come on that later.

How ironic!

20 comments:

  1. Glad you found something Y likes and the terms sound reasonable. Congratulations, ND!

    ReplyDelete
  2. It still amazes me how much used trucks cost. M bought a 2013 used Silverado last year for about the same price. I was definitely in sticker shock!

    ReplyDelete
    Replies
    1. I am totally in sticker shock on the price of a truck. If that's the price of a model that's almost 3 years old (aren't the 2015s due out any time?) how much do they retail for new? *gag!*

      Delete
  3. This is so something I would do! But good terms and he does need a truck.

    ReplyDelete
  4. That is not a huge monthly payment but, 48 months is a long time. I hope there will be windfalls so that you can get rid of the debt sooner.

    ReplyDelete
  5. Trucks are very popular so their prices are high. I have no debt, but for car loans. I never feel bad having a car loan, because I figure if my husband loses his job, they can take the car back. Since we are inching close to retirement, our cars will be paid off soon, as we don't want a car loan then...although I'm not sure if they can last until we are 90! ha. Andrea

    ReplyDelete
  6. You'll be able to get rid of that debt early, and the interest rate is really good, don't beat yourself up - finance & debt is never straightforward :)

    ReplyDelete
  7. You've got a good head on your shoulders... it'll be fine! :) Enjoybthat truck!!!

    ReplyDelete
  8. Honestly, I have $47k in student f***ing loans. I'm no one to talk.

    That said, I can't help but feel a bit disappointed...aaand...it seems like it was a "him" decision rather than a joint decision.

    The irony of trying to build wealth while toting around a $15k car loan plus $2k of cc debt is not lost on me.

    ReplyDelete
    Replies
    1. I don't have 2k in credit card debt. I put $2000 on my credit card because its a super easy way to get rewards. I will pay it off when my statement comes because I have the money for it. The reality is that his old pickup was having a ton of problems and it was a good decision to trade it in while it was running.

      Delete
    2. Are you seriously arguing with me because I'm the one person who expressed dismay at the fact that you and your husband went right back into car loan debt? I'm just saying what I'm thinking, everyone else said it's great that you took out the car loan. I'm sorry but I don't think it's that great, to be honest.

      Delete
    3. I do get a little defensive with your assumptions. I don't think it's great that we went back into debt but I own it. It will be paid in a timely manner.

      Delete
    4. This comment has been removed by the author.

      Delete
    5. This comment has been removed by the author.

      Delete
    6. This comment has been removed by the author.

      Delete
    7. I'm sorry. I didn't mean to be rude. I just think debt tends to be a bad thing. I know that the decision is made, what's done is done and you both will pay it off in a timely manner. I know you're good for the loan, it's just disappointing to have to go into debt, generally.

      Also, could you do me a huge favor and delete the comments from "Kay B"? That would be great...

      Delete
    8. This comment has been removed by the author.

      Delete
    9. This comment has been removed by the author.

      Delete
  9. I so understand the car/truck wheel. You can only keep them for so long and then you need to make the call of when they will crap out. Our "fleet" is getting old and we are at the point of needing to replace a few cars. We also try really hard to maintain them. We are hoping that we can continue passing our cars down to our kids. I think this is a huge gift to them. Mind you, when they get the car it is about 10 years old but is still in good working order. Den and I agree that it would make it so much easier for the kids to get on solid ground without a payment but they might just be getting car repairs instead.

    ReplyDelete