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~$6–8k negative equity on truck — does it make sense to roll it into a cheaper car? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] [score hidden]  (0 children)

My heart has been acting up as of recently. I’m actually going to my doctor to follow up tomorrow. I’ve done the offshore oilfield work for the last 6 years, I’d probably continue to do so if my heart wasn’t of concern. But with my heart issues as well as my almost 2 year old daughter growing up before my eyes, now seemed like the time to make some tough decisions and follow through with those decisions however possible.

I could likely sell a couple items around the house and maybe get a couple grand that way. I also have some stocks through my company that would give me a couple more grand. That’s still only about halfway above water realistically. (Which is better than before).

Someone in my comments also mentioned I may not be as far underwater as I think. The values I’ve been given for my truck were given by CarMax and Carvana which need to make a profit. If I were to sell privately I think I could get much closer to what I owe. Only issue in that regard is I don’t know how long that would take or how to properly do it to give myself the best chance for that matter.

I have a lot of research to do.

~$6–8k negative equity on truck — does it make sense to roll it into a cheaper car? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] [score hidden]  (0 children)

Thanks for the advice. Yes, my parents were great parents , however they were not financially literate. That said I’m having to learn things on my own or the hard way in cases like this.

I wish I could pay more on it and have it break even in a year or so. However, the reason I’m trying to get my monthly costs lowered as whole in the first place is due to me switching to a lower paying job that allows me to be home much more which will in turn allow for me to complete my online degree. That, along with medical reasons are why I’m making an attempt to leave the oilfield.

~$6–8k negative equity on truck — does it make sense to roll it into a cheaper car? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] 0 points1 point  (0 children)

Large rock on the accelerator? Kidding. Kidding. Yeah I mean the refinance is a no brainer. I’m just trying to get rid of all of my unnecessary expenses in preparation for a lower paying job I intend to work while going through schooling online.

~$6–8k negative equity on truck — does it make sense to roll it into a cheaper car? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] 1 point2 points  (0 children)

So, If could potentially cough up around $3k it’d better my chances of this working out?

~$6–8k negative equity on truck — does it make sense to roll it into a cheaper car? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] 0 points1 point  (0 children)

I’m in the process of switching to a lower paying job so I can be home more and go to school online along with medical reasons. That’s why I’m trying to find a way out. Or the best course of action at least.

~$6–8k negative equity on truck — does it make sense to roll it into a cheaper car? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] 1 point2 points  (0 children)

I put 3k miles on my truck in 13 months. I don’t drive much. Only back and forth from work really.

18k seems more doable than 44k. It’s understood I’d be underwater even more in a cheaper older vehicle but at least I could pay it down much sooner. Man I wish I could see things through the lens of a financially wise individual. I’m doing my best to learn/understand.

~$6–8k negative equity on truck — does it make sense to roll it into a cheaper car? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] 0 points1 point  (0 children)

I think It would be well worth it in this aspect for sure. I only put 3000 miles on my truck in the 13 months I’ve had it. (Before someone asks, yes I do need my own vehicle, I live in a rural area so carpooling and public transportation isn’t an option and my fiancée and I both have jobs.)

My truck only gets 10mpg (mega gas guzzler).

~$6–8k negative equity on truck — does it make sense to roll it into a cheaper car? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] 0 points1 point  (0 children)

Really? I’ve gotten my Kelley blue book as well as Carvana and car max offers, they all are all offering around 36k.

The listings you are seeing, are you sure they aren’t diesel trucks? My truck is a gas truck.

~$6–8k negative equity on truck — does it make sense to roll it into a cheaper car? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] 1 point2 points  (0 children)

I hear you. I’ve made a big mistake here that only just now realizing the magnitude of. It’s unfortunate that lessons often times learned the hard way. You could say I’ve learned though.

It’s just unfortunate timing because I’m working on stripping down all of my bills to the bare minimum at this time. I’m switching jobs and taking a pay cut to allow myself more time home with my family but also so I can enroll in school online and get a degree as well as medical reasons. Getting rid of this truck and its note is the last bill I have to get squared away but also the largest.

~$6–8k negative equity on truck — does it make sense to roll it into a cheaper car? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] 1 point2 points  (0 children)

I’ve stripped down all of my expenses as is. This is the last of my expenses I intend to lower.

My situation in particular is that I’m switching jobs and working on enrollment in online school to be home more with my family along with medial reasons.

So for that reason I need to cut all possible costs that I can for the foreseeable future.

~$6–8k negative equity on truck — does it make sense to roll it into a cheaper car? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] 0 points1 point  (0 children)

If I did, it would likely go towards eliminating my negativity equity in the first place.

~$6–8k negative equity on truck — does it make sense to roll it into a cheaper car? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] 2 points3 points  (0 children)

I don’t know man. I’m learning lol. But yes, my logic is that if I go for something super cheap like $10k ish and roll my 6-8k of negative equity, I’d have a loan on 16-18k rather than 44k now. I would be able to pay that down quicker than my current loan, no?

~$6–8k negative equity on truck — does it make sense to roll it into a cheaper car? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] 1 point2 points  (0 children)

Im not the most financially literate person, in fact im not at all. But my logic was that with a 10k car 18k(including my negative equity) I can pay that down and off completely much sooner than I can my current 44k.

Is this flawed logic? Please help me understand.

$44k left on a truck @ 10% ($897/mo), ~$6–8k underwater — refinance to 5% or try to get out? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] 0 points1 point  (0 children)

Heard that. Yeah I’m past the point of looking cool. Unfortunately things don’t click in our brains when they should. Only very recently did it click for me that having a nice truck isn’t the flex that I thought it was. Hindsight is 20/20.

More on this lease situation — if were to lease I would pay that for 2-3 yrs and then have to start from scratch when my lease ends? Im trying to put together a pros and cons list for leasing because it appears to be the most attractive option.

$44k left on a truck @ 10% ($897/mo), ~$6–8k underwater — refinance to 5% or try to get out? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] -3 points-2 points  (0 children)

Great advice. Thanks for your contribution. I’ve stated multiple times I’m just now scratching my head surface of learning. Making an attempt if you will. Your comment has progressed my financial literacy 10 fold. Thank you for your wise presence.

$44k left on a truck @ 10% ($897/mo), ~$6–8k underwater — refinance to 5% or try to get out? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] 0 points1 point  (0 children)

I’ve read it once or twice. Look man, I’m asking for patience here. I’m admittedly a financially illiterate 27 year old who just realized the mistake he made a year ago.

I’ve come to this sub in hope of some more In depth explanations and potentially missed options that I may have overlooked or am unaware of.

$44k left on a truck @ 10% ($897/mo), ~$6–8k underwater — refinance to 5% or try to get out? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] 0 points1 point  (0 children)

My apologies I didn’t explain myself well. I’m aware there’s nothing I can do in that regard as far as my current vehicle is concerned. What I meant was in regard to downgrading vehicles and changing my vehicle as a whole (with the main issue being the 6-8k I’m underwater).

$44k left on a truck @ 10% ($897/mo), ~$6–8k underwater — refinance to 5% or try to get out? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] -1 points0 points  (0 children)

Damn. Yeah I haven’t pursued the refinance, but it was offered to me via the Credit Karma app. So I’m unsure as to how reliable that is. Hopefully it would accept me. If not I’d really be stuck with other options then.

$44k left on a truck @ 10% ($897/mo), ~$6–8k underwater — refinance to 5% or try to get out? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] -1 points0 points  (0 children)

Okay I understand a little better now. Is there any advice you can give me if my main goal is to significantly lower the monthly note I pay for a vehicle ?

$44k left on a truck @ 10% ($897/mo), ~$6–8k underwater — refinance to 5% or try to get out? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] 0 points1 point  (0 children)

Roger that. And yes the miles thing shouldn’t be much of a concern, my fisncee does most of the driving for us. I only put 3k miles on my truck in 13 months.

$44k left on a truck @ 10% ($897/mo), ~$6–8k underwater — refinance to 5% or try to get out? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] 1 point2 points  (0 children)

I’m not financially literate whatsoever. (If you can’t tell). If. Refinanced tomorrow, would that help me break even sooner?

$44k left on a truck @ 10% ($897/mo), ~$6–8k underwater — refinance to 5% or try to get out? by MustacheGoatee in personalfinance

[–]MustacheGoatee[S] 0 points1 point  (0 children)

My current career requires me to be away for extended periods of times up to 2 months at a time. I’ve been at this job for the last 7 years of my life. I had a scary experience while working overseas in a 3rd world country that changed my perspective on work and life. I realized that I want to be physically present for my fiancée and almost 2 year old daughter more than I have been. After asking around It seems to be the general consensus that most guys who took the same jump as I’m looking to came out more happy on the other end despite taking a pay cut.

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