Posts: 910
Location: Hastings, mn, 55033 | If it was me, I'd continue driving the current truck for another 3-4 years. During that time frame I'd make payments to myself(set up a dedicated savings account) of the same amount I'd be paying on the new vehicle for those 3-4 years AND MAKE SURE I PAID MYSELF EVERY MONTH JUST LIKE I'D HAVE TO WITH THE BANK. If your making a $400 a month payment to the bank thats $4800 a year. So at the end of 3 years you $14,400 and end of 4 you have $19,200 towards the new vehicle price, plus you've earned the interest on that $$ over the years instead of paying it (unless of course you qualify for the 0% interest)
IMO if you qualify for 0% interest on a new truck your probably better off doing that than to buy a late model used vehicle that you'll pay interest on. Pay 5% on a $18,000 loan for a late model usd isnt going to end up much less in the long run than 0% and depreciation on a brand new and you'll have the enjoyment/peace of mind that goes with brand new vs. used.
The best of all options is to save and then find a quality truck that you can afford to buy outright, then go back to making payments to yourself towards the next one. If you can get ahead on a vehicle instead of always being behind its a VERY nice feeling. |
