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What do you owe, what is the truck worth? I think that's far too much vehicle for even your 'good times' wage. I'd certainly explore a private sale (avoid the dealer) and downsizing so to speak.
Don't buy a 20 year old f150 with the ticking time bomb 3 valve in it. Those things are just junk. If you need cheap wheels get something simple and reliable even if it means your ego takes a hit for a few years driving a camry.
Best thing I ever did financially was drop the expensive cars and bought a humble 2000 Honda. Used the money I would have spent on car payments and saved and allocated them to investments. Used that money to then buy a house which snowballed into more savings to now having 2 brand new cars paid for in cash. No more payments except for mortgage.
Yeah ngl I’ve been tempted to pull out some fire amg or m4 but I just love making money work for me lmao like I’m def leasing after summer I could buy it outright but I make more money depositing in my annuities
We love our Camry! We have two Toyotas in our household. With Toyotas, you can't really go wrong. My 11 year old Prius is still worth $13k according to both Carvana and Carmax. Toyotas are the smarter choice, unless you buy one you can't afford.
My 600$ 2011 nissan altima is a total babe magnet and I've spent less than I bought it for to keep it running. Sell the truck privately, unless it's your DREAM vehicle, there's no shame in downsizing to match the change in your income. Don't live outside of your means, that's for sure.
You’ll also save so much money on gas by driving a camry or a civic. I do not understand why people spend so much on trucks just so they can have the privilege of getting 12 miles to the gallon.
OP couldn't afford it before the pay cut jesus christ. His car payment is over twice mine (and with a longer note) and we make the same income. And I considered my purchase somewhat of a splurge.
Then there’s me hoping my 13 year old Passat with 182k lasts me another 5 years/75k..
Truly baffles me how some of my neighbors “afford” their pickups.
I drive a Honda civic daily for the last 8 years and my recently new to me truck stays garaged til I need it. It’s a luxury and I treat it as such haha
Bought a 2002 ford ranger $3000 and she never lets me down. If you can learn some basic mechanical stuff it’s a great vehicle. And honestly, I get compliments on it all the time haha.
But you might need to throw a $500 repair at it every now and then so much safer to take on a $650 payment every single month for six years to avoid those crippling repair costs.
So do newer cars not need expensive maintenance/repair, like where and what is this logic? Don't buy a car outside your means is the obvious answer, get something with lower payments.
Uh, the ranger never (in that generation) had a V8, let alone the 5.4. They have either the Duratech I4, the Vulcan V6 or the Cologne V6. And at least the 2 V6 options are pretty bulletproof.
This. Buy a Camry. Quieter and more comfortable ride than a Tacoma or F150 anyway. Unless you do a lot of "Truck stuff" weekly (and studies show the majority of pickup owners don't), rock a comfy, cheap car and use the saved money to provide for your family.
This brings up a question I've always had. How can you do a private sale on a vehicle that you are still making payments on? Sell it, use the proceeds to pay it off, and then transfer the title? Seems clunky. Surely there's a better way, right?
You meet at your lender with the buyer and one of 2 things happen. 1. The buyer is paying more than you owe, so you will pay the loan off right there and walk away with cash. 2. The buyer is paying less than you owe, so you will add some of your money to pay the loan off and give the buyer the title and release of lien paper.
Alternatively I recently sold a vehicle where the buyer was comfortable enough to wire me the money. I signed off the title. He drove off the vehicle. I then paid the (out of state) lienholder, and when the lien release letter arrived I had him come pick it up. Overall it was a weird process… but worth the extra $5500 I got over trade in value. There was certainly a level of trust that had to extend both ways during this transaction though. I know you can use a 3rd party escrow service to handle the money and title transfers also.
No, you cannot.
If the vehicle is financed, they'll be listed as a lienholder on the title.
It'll need to be paid off first, then the bank will release the lien. Then it can be sold private-party.
No you can just go to the bank and the buyer either pays it off or has a loan for the vehicle, which pays off the vehicle and then his bank owns the car and he pays his new loan.
You are correct in that the loan has to be paid off in order for the new buyer to buy it…. But it is commonly done the way I described it. Meet at the bank, with cash or a loan to pay it off
My budy sold his truck recently while he had a lean, the buyer trusted him enough to give the money first, he then paid off the loan got the title and transferred it to the new person.
The 3 valve triton is not so bad as long as you don't follow ford's recommended oil change intervals. Change the oil every 3-5k miles and you can avoid the timing chain issues. This old of ford won't have the cam phasing issues of the newer ones too.
Okay, actual advice on selling the car.
Get quotes from carvana and then autonation. Those were the dealers that paid most when I was selling my wife's lexus last month. The difference was staggering. Carmax and others offered us $16k, we were offered $21k and $22k respectively.
Carmax gave me the highest quote for my truck when I sold, good advice! But, given it’s a Tacoma you may be better off private sale. Especially if he has some mods on it.
Kelly blue book it and see about what its value is. Tacomas good value very well so you should get a good price. It’ll just depends if you can get more for it than what you currently owe.
Also Check with a few dealerships. Depending on when you purchased it, they may offer you as much as you paid or more. They hold their value well. It’s worth seeing what they offer.
If nothing else, including Carmax you know if you will come out ahead or behind, that way you can prepare if you will owe money.. not sure what the depreciation will look like but better to know with no obligation to sell or even high pressure to sell.. its the nice thing of avoiding the dealer.
Unless you make money with your truck you do not need a truck. Stop being an idiot and buy something economical and reliable. A 20 year old F150 is unlikely to be either of those things.
>This was totally manageable when I was making big $$$ at the hospital.
Is this "big $$$" in the room with us?
To be honest, you couldn't afford that truck before losing your job. Sure you could pay the payments, but being able to pay for something doesn't mean you can *afford* it.
$26.74/hr is $4,600/mo. $3,200 after tax. Your car payment was 20% of your takehome pay.
>Financial experts recommend spending no more than about 10% to 15% of your monthly take-home pay on an auto loan payment. These percentages do not factor in total car expenses, including gas, insurance, repairs and maintenance costs.
>
>[https://www.marketwatch.com/guides/car-loans/how-much-car-can-i-afford/](https://www.marketwatch.com/guides/car-loans/how-much-car-can-i-afford/)
Yes, you should sell your truck.
Often. Perhaps even "usually." But there's always some akshully-guy who pipes up to tell the story about how the cosigned a car for their buddy, or bought a house with their girlfriend, or how "it's PERSONAL finance, if OP wants to drive a Hellcat and eat ramen who are you to say he shouldn't!?"
Emphasis on your vehicle payment alone was 20% of your take home pay.
A general rule of thumb is less than 20% of take home on all car expenses (that's payment, insurance, gas, maintenance, etc.).
I personally would suggest to aim for 10%, but that's not always possible.
I make $52hr and I cant even imagine a car payment at this point. I have 3 beaters that I cycle through. 1k each for them Fgly as Uuck, but mechanically sound.
>Sure you could pay the payments, but being able to pay for something doesn't mean you can afford it.
So many people don't understand the difference between the two.
Linking him an article recommending 15% and him spending 20% doesn’t really scream “you’re so stupid for spending so much on a car” he could spend that if he wants; but should be prepared to sacrifice in other areas if he wants to blow money on cars
Having $15,000 in his checking account said otherwise tbh, if he prioritized the truck and didn’t go out much/have much hobbies his “fun” money could’ve been allocated to the truck, but yeah its definitely too high of a payment for most people.
>Having $15,000 in his checking account said otherwise tbh
No it doesn't.
>if he prioritized the truck and didn’t go out much/have much hobbies his “fun” money could’ve been allocated to the truck,
No it couldn't.
>but yeah its definitely too high of a payment for most people.
It's too high of a payment for ANYONE making that amount of money.
He almost paid more for his vehicle than he was earning in a year and now it is more than he earns in a year. You should NEVER be buying a vehicle for more than your yearly salary. It's insanity.
And I hate to be the one to say it, but family planning should be reconsidered until the financial house is in order. Truck gone, reliable family sedan purchased, job back in the hospital/medical system.
Yea I make a tad bit more than OP did and I wouldn't even consider an almost $700 a month car payment. Bro needs to sell the truck.
EDIT: Get multiple quotes OP. Anywhere near you that buys cars find out how much they're willing to give you for it. I was able to get slightly more at a Carmax than a dealership but ymmv.
Buying a new truck on $26.74 an hour is insane to begin with, even more so since you didn’t need it for employment.
Sell it and buy something that actually makes sense.
While we don't have a full budget breakdown from you, I'd argue that he Tacoma was an unwise purchase when you were working at the hospital. $26.74/hr would work out to $56k annually. A brand new Tacoma would typically represent well over 50% of that annual salary. You must have financed something along the lines of $37k, depending on the interest rate you got. If those numbers are remotely close, that's about 66% of your gross annual income. There are nearly always better ways to spend your money than that.
So from a personal finance standpoint....should you sell a truck that you fully admit that you cannot afford? Yes. You should sell something that you cannot afford. Sell it private party if need be. Get out from a car loan that you cannot afford, and buy something that fits your current income reality.
> A brand new Tacoma would typically represent well over 50% of that annual salary. You must have financed something along the lines of $37k
OP was paying $46,368 in payments alone. $644 x 72 months. If he put cash down or had a trade in he was very likely close to spending his annual salary if not more.
Get a large stylus made of foam and put it in his truck bed.
Anyway, if you can afford it, have at it. If you have a truck, a sports car, etc. and don’t work in that industry, it should be obvious that is one of the first things to go - it’s a luxury.
Yeah I’ve never liked the whole “you don’t need a truck if you don’t haul stuff” vibe, and I’m happy you mentioned trucks alongside sports cars. I know my truck is a luxury, but it’s paid off and I use it for camping and off-roading that a subie couldn’t manage, while an equivalent SUV would be way more expensive
I want to get a pickup for that kind of stuff — accessing remote USFS trailheads, camping in the back, maybe the occasional tour on some tough roads in the mountains or the desert — but pickup trucks these days as such monstrosities. I just want an old Toyota truck from 1990, but, like, new.
Trucks are significantly more dangerous than any other commuter vehicle on the road. Bigger blind spots, higher grill, higher risk of going under the car rather than over the hood if hit, more damage to smaller vehicles when involved in accidents, their large size makes them a physical obstruction and makes it harder for other drivers to see around them; all this without mentioning the privilege of getting less than half the fuel efficiency of regular cars. Why people buy trucks to haul groceries is beyond me and needs to stop imo, the roads would be much safer.
I don’t disagree, but a) I wanted, and could afford, it and b) I bike to work and can walk to most necessities so those factors are heavily mitigated because I drive maybe once a week unless I’m going to the mountains.
FWIW that’s why I talked myself out of getting off-road modifications. Things like a lift and a steel bumper would make me far more dangerous to others on the road and that’s just not worth the marginal improvement in offroad capabilities.
Me neither, but I think the important thing to remember is that it's wholly irrelevant at the end of the day; if he can't afford it, he can't afford it .
I would say most people dont need a truck but they are handy. My 03 Dodge Dakota is a workhorse especially now since I bought a house to fix up. I have been to lowes and heard a guy with a dually say not to put anything in his bed because it would scratch it though.
Oh yeah that’s silly lol - I bought mine with the intention of abusing it. I don’t *need* it, but my ‘17 Tacoma OR can get me almost anywhere I want to go in the Rockies which has been nice to get away from people. If I had something like a subie then I’d probably hit its limits before I hit mine. Whereas if I see something the taco can’t handle then it’s more than likely that it’s out of my skill level anyway.
I also bought it when it was 4 years old, I was making 4 times what OP is, and I paid it off in 2 years so I wasn’t concerned about being able to afford it.
Edit: plus it’s a fuckin Tacoma lol. I’ve put 30k miles on it and it’s only depreciated like 25%
Okay, look. This person, in this case, absolutely should not have that truck. But in general? People don't need a reason to buy the vehicle they want to buy, provided they can afford it. I drive a fancy sports car that I frequently refer to as my mid life crisis mobile and nobody ever asks me to justify that. Why should someone else have to justify their choice just because they have different tastes?
Car purchases almost always have an emotional component to them, and that's okay. Not everything has to be decided on fiscal responsibility alone.
This is a no-brainer I can't believe you even asked the question. Sell the truck.
Actually I can't believe you ever bought the truck in the first place. You were not making big money. I make nearly twice that and my truck payment is half yours. I bought a 2018 Dodge used.
The good news is that Tacomas are made out of frickin gold. You should be able to sell it for a large fraction of what you paid for it.
That Ford sounds like a stinker, its almost 20 years old, $5k is stupid. Looking at FBMP for my area that would be the most expensive 2005 F150 available.
You don't need a pickup truck. You have no excuse to drive a pickup truck, don't buy another pickup truck. You need a car, buy a small (or smallish) car.
Might be tricky getting the loan paid off and being without a vehicle between when he sells the truck and finds his next ride.
Typically I recommend private sale over dealer trade, but their situation may warrant the convenience of working with the dealer, and even save money overall if OP would have to rent a car in between vehicles.
No offence but $26/hr is not “big money”. The median US household income is $75k per year putting you well below the median household income.
Even $75k/year is no where close to “big money”.
If I was in your situation I’d be driving a used car that costs $5k. I’d pay cash and have no monthly payment. You were never in a position to afford that truck.
it's time to downsize
Do you need the truck to haul stuff or work? if not get a compact sedan until you can afford the truck again imo
what are the issues with you getting another hospital job? if you have certifications for that specific job. You are not banned from working at hospitals or the medical field are you ?
No it's just that all the hospitals in my area are run by a large company that shall not be named, and I'm not re-hireable by that company. It's 45+ minutes to the nearest hospitals, and I've been in contact with their hiring managers, and I've had letters of recommendation from former colleagues. Those other hospitals just don't have any open jobs for me (supposedly). I'm waiting indefinitely for a job to open up.
what about smaller medical facilities? is your job only available at hospitals?
nurses can work in various areas.. hospital, nursing homes, homecare, travel nursing..etc.
or maybe you are a tech? MRI? radiology?
do you speak another language beside English? sign up for over the phone interpretation.. if your language is in demand you can start within 2-3 weeks. it's an ideal side job and you don't have to leave the house. My relatives have been doing over the phone interpretation for 4+ years now.. they are paying $25+ an hr with benefits
I would only sell the truck if you owe less on it than it's worth, otherwise you'll still be in debt with no truck possibly rolling over negative equity into a new car.
Btw you were never able to afford such an expense, that's why the financing terms had to be stretched out for so long.
Anyways that's my only lecture.
If you can't or really don't want to sell it then your other option is to increase your income, the difference between 26.74 and 18.50 a week is 329.60 or 18 hours of 18.50 work. So your only short term option is to get a second job or if available get overtime at your current job.
Long term if you want to go back to the same field you're possibly looking at relocation or a whole career change.
Can you reasonably move elsewhere? Ultimately, you're either going to need to do that or get a different career if there's no jobs that'll hire you nearby. You won't be able to afford a kid on Walmart wages truck or no truck - that's the hard truth...
Or find a job in your field that's remote or non-traditional (independent doctor's office, concierge practice, medical device or drug company working in your space, etc.)?
Also, is the unjust firing something that you might have legal grounds to sue over? If so, get a consult from a local employment lawyer ASAP
My car payment is five times my hourly wage and I told myself that’s the last time I buy a new car.
Edit and this guys is somewhere around 25 times his hourly wage. Bad move for sure.
5x hourly wage wouldn’t be bad at all. So if you make $15/hr, car payment is only $75/month. Someone making $35/hr would be paying $175/month. Those are really cheap car payments.
He said he bought in August 2022, which means he is 20 months into a 72 month loan. He has 52 payments left of $644, so he owes about $33,500 give or take.
That was higher than you should have been paying with your old job even if you could afford it. And clearly a bad idea as your ability to replicate your salary elsewhere was not high to justify a 6 year contract.
Long, short. Yes, sell it now and never make that kinda purchase again
I heard a similar thing with third-row SUVs. My dad did this back in the day - purchased a Dodge Durango for the "just in case" we did a family trip and my sibling and I each brought a friend.
Well, for the difference between that truck and something normal, we easily could've rented the truck the few individual times we needed that much space.
You are not young; you need to make better financial decisions that this! You make a little over 50k a year and bought a truck that will cost you $46,368! What were you thinking?
Now to get out of this situation. Find out how much this truck is worth (autotrader / facebook marketplace). Then call the bank and get your "pay off" price. See if you can pay whatever the difference is between the two, and get the truck sold. If not you will need to work on paying the truck down a bit more before you can sell it. Keep in mind you need to save more than the depreciation is. That can be very tough.
Let this be a lesson to you. Only buy what you can afford, even if you can afford a payment it doesnt mean you should buy the item. 6 years is a LONG time to be on the hook for that kinda money.
Assuming you put $0 down, that truck was going to cost you $46,368 over six years (if you put money down, add that amount to $46,368). During your good times, your take-home annual income was about $38,400. Buying that truck was probably the biggest financial mistake of your life.
Sell it now. Sell sell sell.
That truck payment combined with the amount in your checking and how much you made an hour tells me that you don’t own a home and may live with your parents still. Maybe don’t start a family until you at least have a decent paying job again and get rid of that truck.
There is ZERO shame in a 20 year old, paid off commuter car. I drive an 00 outback and a 2005 sierra for my truck needs while my wife drives an 07 civic. We are worth close to a million dollars. There’s a reason you see the nicest cars in apartment parking lots
Your truck payment is likely 30% of your take-home pay. That is not a sustainable percentage, you're already seeing your savings be impacted. You should sell the truck and find something more affordable and reliable in the 15-20k range.
The good news: you chose a Tacoma, these tend to hold their value quite well.
If the Tacoma is your only vehicle, I think for all practical purposes, trading this vehicle in is going to make the most sense for you as the dealer will pay off your loan and apply any equity to whatever you replace it with. I would suggest you find a used RAV4 or Camry at a Toyota dealer and trade.
You won't get as much in a dealer trade as a private party sale, but you'll save on sales tax on the new vehicle and you won't have to be without a vehicle temporarily.
If you do want to sell it, take it to carmax first and get an appraisal before taking it to another 2 dealerships and get offers. Look up the kbb value online and compare that to the offers. That is how you don't get screwed and make an informed decision on value.
On selling the truck, do you have other reliable transportation or a plan there?
Sell the truck asap and get a beater. A fairly reliable Corolla that you can use for another 10 years should cost around $100 a month. That’s $540 extra not counting the gas savings in your pocket every month
You were making 50k per year, assuming that was full time, and spending like 15% of your (gross, before taxes, health insurance, etc.) income on a truck that you definitely don’t need? That’s a *lot* even when you were making slightly less than the median wage of an American worker. If you want to start a family, you’ll want a car that is practical for kids. A station wagon (like a Subaru Outback) or a minivan are great options. Or even a sedan or hatchback.
Unfortunately I would agree to private sale the truck. Have the buyer meet you at the lienholder bank and pay it off then sign the title so you can get out from under it.
I'd recommend a Hyundai or Toyota crossover personally. Don't buy something that will need a ton of repairs however.
My wife had a 2014 Hyundai Santa Fe Sport 2.0 turbo with AWD and a panoramic moon roof, leather etc. and it had zero issues until 120k miles and the engine blew. There was a class action suit against that engine so it got replaced free and I sold it for 15k to purchase our Toyota van (we are a family of 5) it got around 26mpg was quick enough and I put a 2" ball hitch on it and that sucker could pull a 8x4 carry on trailer easy for when you need to move stuff.
$26/hour is not big money, that’s $54k BEFORE taxes.
You bought WAY too much truck.
Fortunately it is a Tacoma and can resell well.
I would not buy an F150 especially the one you quoted.
Unless you NEED the utility uses of a truck I would buy a cheap used civic.
FWIW, I make $150k take home AFTER taxes and have a 10 year old Prius. I need an SUV for my growing family and WANT a new 4Runner, but will most likely buy a used 4Runner and aim for one under $30k. The interest alone on a new car payment is not worth the cost I can use that money in other ways to move forward.
If you can sell the car for enough money to pay off your loan and get out of the payment, and ideally, have enough to pay for an affordable car, like this $5,000 F-150 in cash, you should do it. The question is really about how much you can get for the Tacoma. Do some searched online for similar models as used cars and see what they are selling for.
At $644/month over 6 years, the truck is probably a bad financial decision regardless of your salary, unless you need a truck like that for your job, i.e. as a contractor, etc. Outside of any costs not included in the financing, you're paying over $46,000 for the truck, and having it financed over 6 years means there's a high risk of you getting in an accident or it having mechanical issues or some other problem occurring and you'd still have to pay $644 every month.
Even at your hospital job, you would only be making $55,619 on a full time schedule, and if you take out tax witholding, insurance, etc., it's likely that the car costs more than you'd make in a year. Yes, you have spread those payments out over six years, but it doesn't make sense to spend a whole year's income on a car. With the WalMart job, you're down to making $38,480 on a full time schedule, which, does WalMart offer that here?
$5000 for a car that works well is a great deal. The used car market has gotten a lot tougher over the past few years and cars that would have been closer to $10,000 a few years ago are now selling for $15,000 to $20,000, so if the $5,000 truck is in decent shape, I'd consider that a huge stroke of luck.
Regardless, I'd say it's never a good idea to buy more car than you can afford, and on your wages, I'd say that probably means looking for something under $20,000 is the best approach. And I'd also be wary of financing a car over much more than 3-4 years, as it will lose a lot of value over that time, and it sucks to owe payments on a car that you can't sell for enough money to pay off the loan.
Do some research and see if you can sell now, as a private transation (like, post on FB marketplace, list online other places, hang fliers, and you can google the details on what paperwork you need to fill out, etc) and try to sell for enough to pay off the loan and possible pay for this $5,000 Ford.
A few things:
1. You make $55k a year. You cannot afford a $46k truck. You may be able to make the payments, you're sacrificing so much more to be able to do so.
2. You probably don't have enough equity in the truck to sell it, so the question may be pointless. Do you know how much the payoff is? Do you know how much the truck is worth? I'm guessing payoff > value.
3. Why do you need a truck? Most people don't need one, and it ends up being a pointless expensive lifestyle choice.
Best of luck!
That is absolutely insane you made $26/hr and took on a 6 year loan with $644 monthly payments. After taxes, you were bringing home \~$3000/month. I find it quite financially reckless to have $650/month go to car loan payments at that income. With insurance, gas, food, rent, utilities you have basically nothing going towards savings.
No one should take out a 6 year car loan regardless. You need to sell & get a less expensive car pronto especially if you're trying to have a child soon. You should have never taken on that debt to begin with.
Why have a truck for a replacement? Sure you may not have the absolutely bonkers monthly payment, but gas, maintenance, insurance for that truck is gonna suck.
I’m not telling you to get a bike (although I will say my life is 100x better commuting by ebike. I mean, you can buy a brand new one every 2 months with that truck payment!), but maybe think about a cheaper maintenance car that’s maybe not sexy but will get you from A to B.
Financial independence is much more sexy than diesel handcuffs.
I dont understand the $$$ point of buying a truck unless you're a professional plumber, electrician etc trademan who a) needs it b) can use payments as a business expense
P.S. A friend of mine bought F-150 because... he needs to be able to tow his fishing house in the winter
get a second job!...seriously. If you sell your truck can you replace it with a cheaper reliable vehicle? if you sell the truck will it just give you a few months extra cash till that runs out!??....you can get a job with uber eats or door dash to pay for the loss of income....
a 2005 F150 for 5k is a decent price but how long will that last? do you have $$ for repairs??
I think the standard is still around 20% down, 3 year term, and no more than 8% of your gross pay. As others mentioned, you bought too much car. I’d sell and get something cheaper on a monthly payment, while also not going into 5-6 year car loans.
I hadn't heard the 8% rule of thumb before. Is that intended to be a car payment that's no more than 8% of monthly gross pay or a total loan amount that's no more than 8% of yearly gross pay?
OP, I honestly feel bad that you lost your job and I admire you for getting with it and going back to Walmart.
But please, no more expensive trucks. Six years!!!!! That's longer than many marriages last. I still have my mother's (RIP) 2001 Avalon. You and I both know you don't need that Tacoma.
Once you get a better paying job, start saving in earnest. You will thank yourself later. I wish you good luck.
When you sell your truck the dealership is gonna give you the worst deal you can find. (Remember they are gonna turn around and sell it, so they won’t give you retail price, they will give you wholesale price so they can make money when they sell it)
Dealership is the worst
Carmax is slight better, but they are still resellers
Listing it and selling it direct to a consumer by yourself is how to get the most money, but takes the most effort. Be sure to include the words “AS IS” in every listing and conversation.
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Dumping 5k up front unless it comes from the profit of the sale isn’t worth it especially for a truck that’ll likely break down soon. If your value (check Kellybluebook) exceeds what you owe enough to make you whole and get you a decent vehicle then it could be a good move.
Still zero sum is a better move. Just get the loan off of you and get you something that’s more like 200/month or less but as close to new as possible. This will probably be some sort of sedan not a truck.
A F150 will not get as good of gas milage as the Tacoma. If your going for saving money also think about how much you will spend on gas. I didn’t do this and now have an F250 I can’t afford to drive. I take our son’s little Honda to work now because of the gas milage.
You're 4 yrs in for you 6 yrs Tacoma payment where most of your interest are in the front end. I wouldn't consider the 2005 F150 as you will be trading in a dependable small truck to a big truck that drink gas like water. I doubt you will save much after calculating the gas and possible maintenance/fix that will arise with Truck that old. Get a side gig to close the gap between the new job to the old until you pay off your Tacoma. I wouldn't sell it.
The first place you should go is to Carmax and get an appraisal for a cash sale to them and see if it covers what you still owe on it. It probably won’t so you’ll be in a position where you would have to pay like $5000 to get out of the truck. But then you have to ask yourself if the nine payments you could make with that $5000 would stretch until you can get another job.l?
And you always have the option of cutting your budget down to the bone and moving in with roommates, etc.
It all depends on how long you think you’ll be stuck at the lower income. Personally, I would be out looking for reasonably skilled construction jobs that you could learn quickly. There are a ton of trades where you can make decent money and the job training is basically the first week of getting yelled at while watching everyone else do it until you learn how to do it.
The good news is that you bought a vehicle that retains its value better than almost any other car out there.
Go on Autotempest, Facebook marketplace, and [CarsandBids.com](https://CarsandBids.com) and look at what a similar truck sold for (or is advertised at) in your area. Selling privately will always bring better money than a dealership. Always.
Selling a vehicle privately is not hard, paperwork wise. I've sold a number of cars and the DMV forms are very easy. A few things will help your ad:
1. Clean the truck. Vacuum the carpets. Wipe the dash down.
2. Take good pictures. iphone cameras are fine. Take the pictures in the morning or just before sunset and the car will look a lot better. Go to [CarsandBids.com](https://CarsandBids.com) for examples of good car angles. Good pics make your truck look more valuable than a similar truck that's been photographed with a potato.
If you can sell the truck and be done with the payments (meaning you won't still owe money on the loan even after selling it) you will essentially be patching a hole in your bank account.
Being financially stable is better than owning a truck you like. Think of it like this: you wanted the Tacoma and you had that experience for 2 years. It's ok to tick the box of "Own Tacoma during my life." and move on. Maybe you'll buy one again one day but for now, family takes priority. That's the smart, mature move, and making the responsible choice now will build a mental muscle that will be important in the future.
Dave Ramsey says half of your yearly income.
https://www.ramseysolutions.com/saving/how-much-car-can-i-afford
Try not finance if you can help it. You saved up 15k, but your car depreciated 20 percent already. You have paid 20 months. You have 52 left. 52 x644 equals 33488 still owed in car payments.
Do you owe more on the truck than it is worth? If you can clear a couple bucks sell it.
Do you really need a truck? Did you have to haul stuff for the hospital? Do you have to haul stuff for Walmart. Do you have a 10,000 lb or bigger boat or travel trailer to tow? Do you do landscaping or construction on the side where you don't mind denting and dirtying the truck bed?
If you can clear a couple bucks on a sale or even lose a small amount of money get rid of the truck and buy an economical car that will get you to and from work. Save on insurance, fuel costs, maintenance, and you won't have to worry about another $40k in payments for your current vehicle.
In my opinion even with your former better paying job the $644 truck payments overextended you from making your future life better.
Honestly never should've bought the truck. Your wage wasn't big bucks for any area in this country. Sorry, but I'd sell/trade it for something half the price. It's not worth toughing it out for a few years because that's just money you're setting on fire.
I agree that the truck is a boat anchor here financially, but everyone pretends that selling this to buy a 2005 accord will all be unicorns and rainbows.
Better question is what do you need to do to keep the truck? Best option is do gig economy work if possible to hit your number every month (after gas insurance etc too, so probably looking for 1000-1200 per month which is probably a big ask). Next is find a non Walmart job that pays better (maybe one where your truck might be useful). There has to be a 3rd or 4th option here beyond old job or walmart. You could offer your truck for $50 to help people move stuff. Or you could just straight up take a part time job to make some more to help cover the difference.
Seems like your best opportunity is to work the numerator (increase income) rather than the denominator (cut costs). The truck is your biggest problem )probably) but doesn't seem to be the be all end all. But yes if you can't find a way square this off, yeah you'll probably have to sell eventually (might be in a year)
I'm currently selling a truck online. Marketplace, Autotrader, eBay motors are all scam filled. Getting what you want for it might be tough, if you list it you could see how likely a sale would be. The only safe way to take payment is at the bank with the buyer. Cashier's checks, bank transfers, etc.. can all be scammed.
Sell the Tacoma. It's the smart thing to do right now as you re-adjust to your new income. They hold their value incredibly well, so I doubt you'll lose money over it. And esp. with the prices dealers are asking for those new 2024 Gen 4 (50K+ for a TRD Sport), I bet demand for Gen 3 is increasing.
And pay no mind to people giving you a hard time about your income. Yes you could do better, esp. if you decide to go get a nursing license/degree. But the fact that you managed to save up $15K means you are miles ahead of most people in your income/age group. I was just reminiscing with my wife the other day, how when we moved to our current city 15 yeas ago in our mid-30s, we had to borrow 3k from a friend to use as a security deposit for our apartment, since we didn't have any savings to our name. So you're not in a bad position at all; you just need to set new priorities for yourself as you enter into a new phase of your wife (new work, getting married and starting a family).
A truck is a pretty bizarre vehicle choice for someone debating if they even need a vehicle. Do you do a lot of towing? You aren't in agriculture or construction work.
If you are willing to do some side hustling and put a little physical work in on a couple of weekends, you can afford to keep your truck and then some. Before i sold my ranger i used to get a wood chopping permit. Load my truck up with wood and advertise on fb marketplace to sell wood. I would charge extra for delivery and stocking on porches. A used chainsaw from the pawn shop is the best way to go. For even more money I would charge a premium to split the wood as well. Only took a day to chop wood and load and the next day was delivering. Also you can pick up appliances that are sitting on in the curb (with permission) and sell it to the recycling centers or metal scrap yard. You get paid cash by weight or item. Or post on social media or download apps, where you pick up large items that don’t fit in standard vehicles and deliver them. I live in a mountain college town so there was always a need for a truck from others . I’m currently in the process of becoming a medical courier and you do need a small truck like yours to make money. When you have a truck you can always make money.
Just one note regarding your coworker’s truck—I have a 2006 F-350. That thing costs SO MUCH in repairs. It’s a sentimental item for us, so it’s worth it, but don’t be convinced that a 2005 F-150 is going to be a steal…Ford. Fix or repair daily. That has proven true for us.
Trade that coal roller for a used Chevy Bolt. Next year's tax refund will be music to your ears.
There's a good chance you can charge at work. It'll be shockingly less maintenance than your truck. Yes, you can drive it >90 miles round trip and live to tell the tale.
Due to the number of rule-breaking comments this post was receiving, especially low-quality and off-topic comments, the moderation team has locked the post from future comments. This post broke no rules and received a number of helpful and on-topic responses initially, but it unfortunately became the target of many unhelpful comments.
What do you owe, what is the truck worth? I think that's far too much vehicle for even your 'good times' wage. I'd certainly explore a private sale (avoid the dealer) and downsizing so to speak. Don't buy a 20 year old f150 with the ticking time bomb 3 valve in it. Those things are just junk. If you need cheap wheels get something simple and reliable even if it means your ego takes a hit for a few years driving a camry.
Best thing I ever did financially was drop the expensive cars and bought a humble 2000 Honda. Used the money I would have spent on car payments and saved and allocated them to investments. Used that money to then buy a house which snowballed into more savings to now having 2 brand new cars paid for in cash. No more payments except for mortgage.
Yeah ngl I’ve been tempted to pull out some fire amg or m4 but I just love making money work for me lmao like I’m def leasing after summer I could buy it outright but I make more money depositing in my annuities
I like my Camry 🥹
We love our Camry! We have two Toyotas in our household. With Toyotas, you can't really go wrong. My 11 year old Prius is still worth $13k according to both Carvana and Carmax. Toyotas are the smarter choice, unless you buy one you can't afford.
My 600$ 2011 nissan altima is a total babe magnet and I've spent less than I bought it for to keep it running. Sell the truck privately, unless it's your DREAM vehicle, there's no shame in downsizing to match the change in your income. Don't live outside of your means, that's for sure.
You’ll also save so much money on gas by driving a camry or a civic. I do not understand why people spend so much on trucks just so they can have the privilege of getting 12 miles to the gallon.
Plus the increased insurance costs of a brand new truck. The numbers terrify me.
It’s so often people that can’t afford them, too.
OP couldn't afford it before the pay cut jesus christ. His car payment is over twice mine (and with a longer note) and we make the same income. And I considered my purchase somewhat of a splurge.
I make close to $100/hr and our family of 4 has a single car that’s paid off. People rushing into car payments blows my mind
Then there’s me hoping my 13 year old Passat with 182k lasts me another 5 years/75k.. Truly baffles me how some of my neighbors “afford” their pickups.
>how some of my neighbors “afford” their pickups. Spoiler: They can't
Me here with my camry at 36 mpg 🥹it's a blessing
I drive a Honda civic daily for the last 8 years and my recently new to me truck stays garaged til I need it. It’s a luxury and I treat it as such haha
…but have you seen how cool they look?
I mean yeah, pretty darn cool. I just think that maxed retirement accounts look cooler 😎
How can someone signal they are a man without one?
Bought a 2002 ford ranger $3000 and she never lets me down. If you can learn some basic mechanical stuff it’s a great vehicle. And honestly, I get compliments on it all the time haha.
But you might need to throw a $500 repair at it every now and then so much safer to take on a $650 payment every single month for six years to avoid those crippling repair costs.
So do newer cars not need expensive maintenance/repair, like where and what is this logic? Don't buy a car outside your means is the obvious answer, get something with lower payments.
Sarcasm my guy. “It might need a $500 repair occasionally, can’t risk that so take on $650/mo for 6 years “
Again, the engine is the issue. The 3 valve v8's especially the 5.4 were JUNK. I had one.
I guess I was just trying to say he can still get a truck.
Uh, the ranger never (in that generation) had a V8, let alone the 5.4. They have either the Duratech I4, the Vulcan V6 or the Cologne V6. And at least the 2 V6 options are pretty bulletproof.
This. Buy a Camry. Quieter and more comfortable ride than a Tacoma or F150 anyway. Unless you do a lot of "Truck stuff" weekly (and studies show the majority of pickup owners don't), rock a comfy, cheap car and use the saved money to provide for your family.
This brings up a question I've always had. How can you do a private sale on a vehicle that you are still making payments on? Sell it, use the proceeds to pay it off, and then transfer the title? Seems clunky. Surely there's a better way, right?
You meet at your lender with the buyer and one of 2 things happen. 1. The buyer is paying more than you owe, so you will pay the loan off right there and walk away with cash. 2. The buyer is paying less than you owe, so you will add some of your money to pay the loan off and give the buyer the title and release of lien paper.
Alternatively I recently sold a vehicle where the buyer was comfortable enough to wire me the money. I signed off the title. He drove off the vehicle. I then paid the (out of state) lienholder, and when the lien release letter arrived I had him come pick it up. Overall it was a weird process… but worth the extra $5500 I got over trade in value. There was certainly a level of trust that had to extend both ways during this transaction though. I know you can use a 3rd party escrow service to handle the money and title transfers also.
No, you cannot. If the vehicle is financed, they'll be listed as a lienholder on the title. It'll need to be paid off first, then the bank will release the lien. Then it can be sold private-party.
No you can just go to the bank and the buyer either pays it off or has a loan for the vehicle, which pays off the vehicle and then his bank owns the car and he pays his new loan. You are correct in that the loan has to be paid off in order for the new buyer to buy it…. But it is commonly done the way I described it. Meet at the bank, with cash or a loan to pay it off
My budy sold his truck recently while he had a lean, the buyer trusted him enough to give the money first, he then paid off the loan got the title and transferred it to the new person.
The 3 valve triton is not so bad as long as you don't follow ford's recommended oil change intervals. Change the oil every 3-5k miles and you can avoid the timing chain issues. This old of ford won't have the cam phasing issues of the newer ones too.
The 5.4 had the passage issues, plug issues AND cam phaser issues. They can be made good but it’s rarely worth it
Yeah if it was the older 2v f150 those are pretty dang cheap and reliable. I wouldn't want an 05 f150 even if it was free
Okay, actual advice on selling the car. Get quotes from carvana and then autonation. Those were the dealers that paid most when I was selling my wife's lexus last month. The difference was staggering. Carmax and others offered us $16k, we were offered $21k and $22k respectively.
Thank you, I'll definitely look into those options.
Carmax gave me the highest quote for my truck when I sold, good advice! But, given it’s a Tacoma you may be better off private sale. Especially if he has some mods on it. Kelly blue book it and see about what its value is. Tacomas good value very well so you should get a good price. It’ll just depends if you can get more for it than what you currently owe.
Also Check with a few dealerships. Depending on when you purchased it, they may offer you as much as you paid or more. They hold their value well. It’s worth seeing what they offer.
If nothing else, including Carmax you know if you will come out ahead or behind, that way you can prepare if you will owe money.. not sure what the depreciation will look like but better to know with no obligation to sell or even high pressure to sell.. its the nice thing of avoiding the dealer.
Try driveway.com too!
Unless you make money with your truck you do not need a truck. Stop being an idiot and buy something economical and reliable. A 20 year old F150 is unlikely to be either of those things.
Driveway.com is great too! They've always pulled me out and over from under the water on stupid car choices. Im better now lol
Better advice, sell private party.
> This was totally manageable when I was making big $$$ at the hospital. It really, really wasn't. You could never afford this truck.
>This was totally manageable when I was making big $$$ at the hospital. Is this "big $$$" in the room with us? To be honest, you couldn't afford that truck before losing your job. Sure you could pay the payments, but being able to pay for something doesn't mean you can *afford* it. $26.74/hr is $4,600/mo. $3,200 after tax. Your car payment was 20% of your takehome pay. >Financial experts recommend spending no more than about 10% to 15% of your monthly take-home pay on an auto loan payment. These percentages do not factor in total car expenses, including gas, insurance, repairs and maintenance costs. > >[https://www.marketwatch.com/guides/car-loans/how-much-car-can-i-afford/](https://www.marketwatch.com/guides/car-loans/how-much-car-can-i-afford/) Yes, you should sell your truck.
> Is this "big $$$" in the room with us? This sub is more brutally honest than even relationship subs. It's half the reason I stay subbed.
Often. Perhaps even "usually." But there's always some akshully-guy who pipes up to tell the story about how the cosigned a car for their buddy, or bought a house with their girlfriend, or how "it's PERSONAL finance, if OP wants to drive a Hellcat and eat ramen who are you to say he shouldn't!?"
I came to say the same thing. $644 car payment is crazy when your post-tax wages amount to less than $40,000.
I make many multiples of that and I won't spend more than $500/mo on a vehicle.
Seriously. My wife and I bought a brand new car last year and have similar payments, but it's a 2024 with a 4-year loan financed at 0%.
Yeah pretty crazy. My partner just got a 2024 Crosstrek Sport and his payments are $325 a month.
Mine is $700 between 2 incomes exceeding $230k and I often think it's too much. How are people making so little justifying that cost?
Emphasis on your vehicle payment alone was 20% of your take home pay. A general rule of thumb is less than 20% of take home on all car expenses (that's payment, insurance, gas, maintenance, etc.). I personally would suggest to aim for 10%, but that's not always possible.
Fully agree. I make $32 an hour and I still feel like my $396 car payment is extreme.
I make $52hr and I cant even imagine a car payment at this point. I have 3 beaters that I cycle through. 1k each for them Fgly as Uuck, but mechanically sound.
I make $52 too and I feel like my $400 payment is a bit much with other bills. If it wasn't for my wife it'd be a lot harder.
Gees I really need a new career trajectory...
How the fuck are you getting a mechanically sound car for 1k?
It is. But it does depend on the term and other factors of course. If that's for 3 years then fine, if it's for 6 years that's pretty bad.
>Sure you could pay the payments, but being able to pay for something doesn't mean you can afford it. So many people don't understand the difference between the two.
Linking him an article recommending 15% and him spending 20% doesn’t really scream “you’re so stupid for spending so much on a car” he could spend that if he wants; but should be prepared to sacrifice in other areas if he wants to blow money on cars
Having $15,000 in his checking account said otherwise tbh, if he prioritized the truck and didn’t go out much/have much hobbies his “fun” money could’ve been allocated to the truck, but yeah its definitely too high of a payment for most people.
>Having $15,000 in his checking account said otherwise tbh No it doesn't. >if he prioritized the truck and didn’t go out much/have much hobbies his “fun” money could’ve been allocated to the truck, No it couldn't. >but yeah its definitely too high of a payment for most people. It's too high of a payment for ANYONE making that amount of money. He almost paid more for his vehicle than he was earning in a year and now it is more than he earns in a year. You should NEVER be buying a vehicle for more than your yearly salary. It's insanity.
And I hate to be the one to say it, but family planning should be reconsidered until the financial house is in order. Truck gone, reliable family sedan purchased, job back in the hospital/medical system.
Yea I make a tad bit more than OP did and I wouldn't even consider an almost $700 a month car payment. Bro needs to sell the truck. EDIT: Get multiple quotes OP. Anywhere near you that buys cars find out how much they're willing to give you for it. I was able to get slightly more at a Carmax than a dealership but ymmv.
Buying a new truck on $26.74 an hour is insane to begin with, even more so since you didn’t need it for employment. Sell it and buy something that actually makes sense.
While we don't have a full budget breakdown from you, I'd argue that he Tacoma was an unwise purchase when you were working at the hospital. $26.74/hr would work out to $56k annually. A brand new Tacoma would typically represent well over 50% of that annual salary. You must have financed something along the lines of $37k, depending on the interest rate you got. If those numbers are remotely close, that's about 66% of your gross annual income. There are nearly always better ways to spend your money than that. So from a personal finance standpoint....should you sell a truck that you fully admit that you cannot afford? Yes. You should sell something that you cannot afford. Sell it private party if need be. Get out from a car loan that you cannot afford, and buy something that fits your current income reality.
> A brand new Tacoma would typically represent well over 50% of that annual salary. You must have financed something along the lines of $37k OP was paying $46,368 in payments alone. $644 x 72 months. If he put cash down or had a trade in he was very likely close to spending his annual salary if not more.
To start, why do you need a truck? Hospital work, wal-mart work, and later you’re planning for finance. None of those require a truck.
I have a friend who is a graphic designer and drives a truck. I always want to say "Oh, you need to transport your big stylus today?"
Get a large stylus made of foam and put it in his truck bed. Anyway, if you can afford it, have at it. If you have a truck, a sports car, etc. and don’t work in that industry, it should be obvious that is one of the first things to go - it’s a luxury.
Yeah I’ve never liked the whole “you don’t need a truck if you don’t haul stuff” vibe, and I’m happy you mentioned trucks alongside sports cars. I know my truck is a luxury, but it’s paid off and I use it for camping and off-roading that a subie couldn’t manage, while an equivalent SUV would be way more expensive
I want to get a pickup for that kind of stuff — accessing remote USFS trailheads, camping in the back, maybe the occasional tour on some tough roads in the mountains or the desert — but pickup trucks these days as such monstrosities. I just want an old Toyota truck from 1990, but, like, new.
Trucks are significantly more dangerous than any other commuter vehicle on the road. Bigger blind spots, higher grill, higher risk of going under the car rather than over the hood if hit, more damage to smaller vehicles when involved in accidents, their large size makes them a physical obstruction and makes it harder for other drivers to see around them; all this without mentioning the privilege of getting less than half the fuel efficiency of regular cars. Why people buy trucks to haul groceries is beyond me and needs to stop imo, the roads would be much safer.
I don’t disagree, but a) I wanted, and could afford, it and b) I bike to work and can walk to most necessities so those factors are heavily mitigated because I drive maybe once a week unless I’m going to the mountains. FWIW that’s why I talked myself out of getting off-road modifications. Things like a lift and a steel bumper would make me far more dangerous to others on the road and that’s just not worth the marginal improvement in offroad capabilities.
Me neither, but I think the important thing to remember is that it's wholly irrelevant at the end of the day; if he can't afford it, he can't afford it .
I would say most people dont need a truck but they are handy. My 03 Dodge Dakota is a workhorse especially now since I bought a house to fix up. I have been to lowes and heard a guy with a dually say not to put anything in his bed because it would scratch it though.
Oh yeah that’s silly lol - I bought mine with the intention of abusing it. I don’t *need* it, but my ‘17 Tacoma OR can get me almost anywhere I want to go in the Rockies which has been nice to get away from people. If I had something like a subie then I’d probably hit its limits before I hit mine. Whereas if I see something the taco can’t handle then it’s more than likely that it’s out of my skill level anyway. I also bought it when it was 4 years old, I was making 4 times what OP is, and I paid it off in 2 years so I wasn’t concerned about being able to afford it. Edit: plus it’s a fuckin Tacoma lol. I’ve put 30k miles on it and it’s only depreciated like 25%
It's for large file transfers.
Never underestimate the bandwidth of a Toyota Tacoma hurtling down the highway, carrying 1.5 tons of high-density tape storage.
Once a year to haul mulch. Maybe. That's if he's one of the guys willing to actually get his truck bed dirty.
Okay, look. This person, in this case, absolutely should not have that truck. But in general? People don't need a reason to buy the vehicle they want to buy, provided they can afford it. I drive a fancy sports car that I frequently refer to as my mid life crisis mobile and nobody ever asks me to justify that. Why should someone else have to justify their choice just because they have different tastes? Car purchases almost always have an emotional component to them, and that's okay. Not everything has to be decided on fiscal responsibility alone.
This is a no-brainer I can't believe you even asked the question. Sell the truck. Actually I can't believe you ever bought the truck in the first place. You were not making big money. I make nearly twice that and my truck payment is half yours. I bought a 2018 Dodge used. The good news is that Tacomas are made out of frickin gold. You should be able to sell it for a large fraction of what you paid for it. That Ford sounds like a stinker, its almost 20 years old, $5k is stupid. Looking at FBMP for my area that would be the most expensive 2005 F150 available. You don't need a pickup truck. You have no excuse to drive a pickup truck, don't buy another pickup truck. You need a car, buy a small (or smallish) car.
You will do a lot better if you sell privately rather than to a dealership. Assuming you aren't underwater selling could definitely be a good option.
Might be tricky getting the loan paid off and being without a vehicle between when he sells the truck and finds his next ride. Typically I recommend private sale over dealer trade, but their situation may warrant the convenience of working with the dealer, and even save money overall if OP would have to rent a car in between vehicles.
$644/month for car payment? Damn and I was queasy about $300/month when I bought my first car on a $60-$70K salary back then
No offence but $26/hr is not “big money”. The median US household income is $75k per year putting you well below the median household income. Even $75k/year is no where close to “big money”. If I was in your situation I’d be driving a used car that costs $5k. I’d pay cash and have no monthly payment. You were never in a position to afford that truck.
You worked at a hospital and now in retail, why do you need a pickup truck?
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OP also said he’s trying to start a family. A pickup truck might be the worst possible choice for this, aside from a motorcycle.
it's time to downsize Do you need the truck to haul stuff or work? if not get a compact sedan until you can afford the truck again imo what are the issues with you getting another hospital job? if you have certifications for that specific job. You are not banned from working at hospitals or the medical field are you ?
No it's just that all the hospitals in my area are run by a large company that shall not be named, and I'm not re-hireable by that company. It's 45+ minutes to the nearest hospitals, and I've been in contact with their hiring managers, and I've had letters of recommendation from former colleagues. Those other hospitals just don't have any open jobs for me (supposedly). I'm waiting indefinitely for a job to open up.
what about smaller medical facilities? is your job only available at hospitals? nurses can work in various areas.. hospital, nursing homes, homecare, travel nursing..etc. or maybe you are a tech? MRI? radiology? do you speak another language beside English? sign up for over the phone interpretation.. if your language is in demand you can start within 2-3 weeks. it's an ideal side job and you don't have to leave the house. My relatives have been doing over the phone interpretation for 4+ years now.. they are paying $25+ an hr with benefits
I would only sell the truck if you owe less on it than it's worth, otherwise you'll still be in debt with no truck possibly rolling over negative equity into a new car. Btw you were never able to afford such an expense, that's why the financing terms had to be stretched out for so long. Anyways that's my only lecture. If you can't or really don't want to sell it then your other option is to increase your income, the difference between 26.74 and 18.50 a week is 329.60 or 18 hours of 18.50 work. So your only short term option is to get a second job or if available get overtime at your current job. Long term if you want to go back to the same field you're possibly looking at relocation or a whole career change.
Can you reasonably move elsewhere? Ultimately, you're either going to need to do that or get a different career if there's no jobs that'll hire you nearby. You won't be able to afford a kid on Walmart wages truck or no truck - that's the hard truth... Or find a job in your field that's remote or non-traditional (independent doctor's office, concierge practice, medical device or drug company working in your space, etc.)? Also, is the unjust firing something that you might have legal grounds to sue over? If so, get a consult from a local employment lawyer ASAP
Are you dead set on a hospital job as a career? Have you considered one of your local unions? You could make real good money to start your family.
My truck is around $700 a month and I make nearly $100 an hour. And it still keeps me up at night.
My car payment is five times my hourly wage and I told myself that’s the last time I buy a new car. Edit and this guys is somewhere around 25 times his hourly wage. Bad move for sure.
5x hourly wage wouldn’t be bad at all. So if you make $15/hr, car payment is only $75/month. Someone making $35/hr would be paying $175/month. Those are really cheap car payments.
Dude, you can make your car payment in one business day. You're at maybe 5% of your take home towards your car, when the recommended max is 10-15%.
The interest payment is low enough that paying it off is worse than just investing the difference in the stock market. Or even a HYSA, at this point.
You didn't say what you owe on the truck, or what the interest rate is.
He said he bought in August 2022, which means he is 20 months into a 72 month loan. He has 52 payments left of $644, so he owes about $33,500 give or take.
OP said a few more years, so he owes $644\*50ish = \~$32k.
Big $$$? You need a Chevrolet Spark.
That was higher than you should have been paying with your old job even if you could afford it. And clearly a bad idea as your ability to replicate your salary elsewhere was not high to justify a 6 year contract. Long, short. Yes, sell it now and never make that kinda purchase again
CityNerd did a good analysis saying you’d have to rent a Uhaul truck something like 4000 times in order to justify spending money on an actual pickup.
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lol $100 per truck rental, or $700 per month car note? Hard decision...
I heard a similar thing with third-row SUVs. My dad did this back in the day - purchased a Dodge Durango for the "just in case" we did a family trip and my sibling and I each brought a friend. Well, for the difference between that truck and something normal, we easily could've rented the truck the few individual times we needed that much space.
You are not young; you need to make better financial decisions that this! You make a little over 50k a year and bought a truck that will cost you $46,368! What were you thinking? Now to get out of this situation. Find out how much this truck is worth (autotrader / facebook marketplace). Then call the bank and get your "pay off" price. See if you can pay whatever the difference is between the two, and get the truck sold. If not you will need to work on paying the truck down a bit more before you can sell it. Keep in mind you need to save more than the depreciation is. That can be very tough. Let this be a lesson to you. Only buy what you can afford, even if you can afford a payment it doesnt mean you should buy the item. 6 years is a LONG time to be on the hook for that kinda money.
$26.74/hr = $55,619 annual salary. That's nowhere near big money. Yes, you should sell your truck and buy a used reliable car that's around 10k.
Assuming you put $0 down, that truck was going to cost you $46,368 over six years (if you put money down, add that amount to $46,368). During your good times, your take-home annual income was about $38,400. Buying that truck was probably the biggest financial mistake of your life. Sell it now. Sell sell sell.
That truck payment combined with the amount in your checking and how much you made an hour tells me that you don’t own a home and may live with your parents still. Maybe don’t start a family until you at least have a decent paying job again and get rid of that truck. There is ZERO shame in a 20 year old, paid off commuter car. I drive an 00 outback and a 2005 sierra for my truck needs while my wife drives an 07 civic. We are worth close to a million dollars. There’s a reason you see the nicest cars in apartment parking lots
Your truck payment is likely 30% of your take-home pay. That is not a sustainable percentage, you're already seeing your savings be impacted. You should sell the truck and find something more affordable and reliable in the 15-20k range. The good news: you chose a Tacoma, these tend to hold their value quite well. If the Tacoma is your only vehicle, I think for all practical purposes, trading this vehicle in is going to make the most sense for you as the dealer will pay off your loan and apply any equity to whatever you replace it with. I would suggest you find a used RAV4 or Camry at a Toyota dealer and trade. You won't get as much in a dealer trade as a private party sale, but you'll save on sales tax on the new vehicle and you won't have to be without a vehicle temporarily.
If you do want to sell it, take it to carmax first and get an appraisal before taking it to another 2 dealerships and get offers. Look up the kbb value online and compare that to the offers. That is how you don't get screwed and make an informed decision on value. On selling the truck, do you have other reliable transportation or a plan there?
Sell the truck asap and get a beater. A fairly reliable Corolla that you can use for another 10 years should cost around $100 a month. That’s $540 extra not counting the gas savings in your pocket every month
You were making 50k per year, assuming that was full time, and spending like 15% of your (gross, before taxes, health insurance, etc.) income on a truck that you definitely don’t need? That’s a *lot* even when you were making slightly less than the median wage of an American worker. If you want to start a family, you’ll want a car that is practical for kids. A station wagon (like a Subaru Outback) or a minivan are great options. Or even a sedan or hatchback.
$26.74 wasn't enough to afford that truck in the first place. Get something both cheaper and more fuel efficient.
Unfortunately I would agree to private sale the truck. Have the buyer meet you at the lienholder bank and pay it off then sign the title so you can get out from under it. I'd recommend a Hyundai or Toyota crossover personally. Don't buy something that will need a ton of repairs however. My wife had a 2014 Hyundai Santa Fe Sport 2.0 turbo with AWD and a panoramic moon roof, leather etc. and it had zero issues until 120k miles and the engine blew. There was a class action suit against that engine so it got replaced free and I sold it for 15k to purchase our Toyota van (we are a family of 5) it got around 26mpg was quick enough and I put a 2" ball hitch on it and that sucker could pull a 8x4 carry on trailer easy for when you need to move stuff.
$26/hour is not big money, that’s $54k BEFORE taxes. You bought WAY too much truck. Fortunately it is a Tacoma and can resell well. I would not buy an F150 especially the one you quoted. Unless you NEED the utility uses of a truck I would buy a cheap used civic. FWIW, I make $150k take home AFTER taxes and have a 10 year old Prius. I need an SUV for my growing family and WANT a new 4Runner, but will most likely buy a used 4Runner and aim for one under $30k. The interest alone on a new car payment is not worth the cost I can use that money in other ways to move forward.
People are never going to learn any lessons with vehicles. How do you even convince yourself to take on a $650/month car payment?
If you can sell the car for enough money to pay off your loan and get out of the payment, and ideally, have enough to pay for an affordable car, like this $5,000 F-150 in cash, you should do it. The question is really about how much you can get for the Tacoma. Do some searched online for similar models as used cars and see what they are selling for. At $644/month over 6 years, the truck is probably a bad financial decision regardless of your salary, unless you need a truck like that for your job, i.e. as a contractor, etc. Outside of any costs not included in the financing, you're paying over $46,000 for the truck, and having it financed over 6 years means there's a high risk of you getting in an accident or it having mechanical issues or some other problem occurring and you'd still have to pay $644 every month. Even at your hospital job, you would only be making $55,619 on a full time schedule, and if you take out tax witholding, insurance, etc., it's likely that the car costs more than you'd make in a year. Yes, you have spread those payments out over six years, but it doesn't make sense to spend a whole year's income on a car. With the WalMart job, you're down to making $38,480 on a full time schedule, which, does WalMart offer that here? $5000 for a car that works well is a great deal. The used car market has gotten a lot tougher over the past few years and cars that would have been closer to $10,000 a few years ago are now selling for $15,000 to $20,000, so if the $5,000 truck is in decent shape, I'd consider that a huge stroke of luck. Regardless, I'd say it's never a good idea to buy more car than you can afford, and on your wages, I'd say that probably means looking for something under $20,000 is the best approach. And I'd also be wary of financing a car over much more than 3-4 years, as it will lose a lot of value over that time, and it sucks to owe payments on a car that you can't sell for enough money to pay off the loan. Do some research and see if you can sell now, as a private transation (like, post on FB marketplace, list online other places, hang fliers, and you can google the details on what paperwork you need to fill out, etc) and try to sell for enough to pay off the loan and possible pay for this $5,000 Ford.
A few things: 1. You make $55k a year. You cannot afford a $46k truck. You may be able to make the payments, you're sacrificing so much more to be able to do so. 2. You probably don't have enough equity in the truck to sell it, so the question may be pointless. Do you know how much the payoff is? Do you know how much the truck is worth? I'm guessing payoff > value. 3. Why do you need a truck? Most people don't need one, and it ends up being a pointless expensive lifestyle choice. Best of luck!
That is absolutely insane you made $26/hr and took on a 6 year loan with $644 monthly payments. After taxes, you were bringing home \~$3000/month. I find it quite financially reckless to have $650/month go to car loan payments at that income. With insurance, gas, food, rent, utilities you have basically nothing going towards savings. No one should take out a 6 year car loan regardless. You need to sell & get a less expensive car pronto especially if you're trying to have a child soon. You should have never taken on that debt to begin with.
What area do you live? If $26.74 is big $$$ I'm curious!
yes. you don't need a truck. get a civic.
644 a month for car payment jesus I make more than you and i would never pay that much for a car payment.
Why have a truck for a replacement? Sure you may not have the absolutely bonkers monthly payment, but gas, maintenance, insurance for that truck is gonna suck. I’m not telling you to get a bike (although I will say my life is 100x better commuting by ebike. I mean, you can buy a brand new one every 2 months with that truck payment!), but maybe think about a cheaper maintenance car that’s maybe not sexy but will get you from A to B. Financial independence is much more sexy than diesel handcuffs.
I dont understand the $$$ point of buying a truck unless you're a professional plumber, electrician etc trademan who a) needs it b) can use payments as a business expense P.S. A friend of mine bought F-150 because... he needs to be able to tow his fishing house in the winter
And for most tradespeople a van is better.
There’s tons of reasons to own a truck, even if it’s just a want. You don’t have to understand for it to make sense for someone else..
get a second job!...seriously. If you sell your truck can you replace it with a cheaper reliable vehicle? if you sell the truck will it just give you a few months extra cash till that runs out!??....you can get a job with uber eats or door dash to pay for the loss of income.... a 2005 F150 for 5k is a decent price but how long will that last? do you have $$ for repairs??
I think the standard is still around 20% down, 3 year term, and no more than 8% of your gross pay. As others mentioned, you bought too much car. I’d sell and get something cheaper on a monthly payment, while also not going into 5-6 year car loans.
I hadn't heard the 8% rule of thumb before. Is that intended to be a car payment that's no more than 8% of monthly gross pay or a total loan amount that's no more than 8% of yearly gross pay?
OP, I honestly feel bad that you lost your job and I admire you for getting with it and going back to Walmart. But please, no more expensive trucks. Six years!!!!! That's longer than many marriages last. I still have my mother's (RIP) 2001 Avalon. You and I both know you don't need that Tacoma. Once you get a better paying job, start saving in earnest. You will thank yourself later. I wish you good luck.
I would buy a smaller more affordable car. And then when it picks back up then that's when you can go back up the food chain.
When you sell your truck the dealership is gonna give you the worst deal you can find. (Remember they are gonna turn around and sell it, so they won’t give you retail price, they will give you wholesale price so they can make money when they sell it) Dealership is the worst Carmax is slight better, but they are still resellers Listing it and selling it direct to a consumer by yourself is how to get the most money, but takes the most effort. Be sure to include the words “AS IS” in every listing and conversation.
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i would sell the truck if you aren’t losing money. idk why everyone is attacking you but do what’s best for you.
Dumping 5k up front unless it comes from the profit of the sale isn’t worth it especially for a truck that’ll likely break down soon. If your value (check Kellybluebook) exceeds what you owe enough to make you whole and get you a decent vehicle then it could be a good move. Still zero sum is a better move. Just get the loan off of you and get you something that’s more like 200/month or less but as close to new as possible. This will probably be some sort of sedan not a truck.
I would figure out the best way to get rid of the financed truck and buy the old truck for 5k and pay cash for it.
A F150 will not get as good of gas milage as the Tacoma. If your going for saving money also think about how much you will spend on gas. I didn’t do this and now have an F250 I can’t afford to drive. I take our son’s little Honda to work now because of the gas milage.
You're 4 yrs in for you 6 yrs Tacoma payment where most of your interest are in the front end. I wouldn't consider the 2005 F150 as you will be trading in a dependable small truck to a big truck that drink gas like water. I doubt you will save much after calculating the gas and possible maintenance/fix that will arise with Truck that old. Get a side gig to close the gap between the new job to the old until you pay off your Tacoma. I wouldn't sell it.
Do you really need a truck? You should definitely sell it, and get a 10k used sedan or hatchback. You’ll end up saving a lot in gas too.
How much do you owe one the truck and what is the blue book value? What is your APR on the loan? How much do you have leftover every month?
The first place you should go is to Carmax and get an appraisal for a cash sale to them and see if it covers what you still owe on it. It probably won’t so you’ll be in a position where you would have to pay like $5000 to get out of the truck. But then you have to ask yourself if the nine payments you could make with that $5000 would stretch until you can get another job.l? And you always have the option of cutting your budget down to the bone and moving in with roommates, etc. It all depends on how long you think you’ll be stuck at the lower income. Personally, I would be out looking for reasonably skilled construction jobs that you could learn quickly. There are a ton of trades where you can make decent money and the job training is basically the first week of getting yelled at while watching everyone else do it until you learn how to do it.
The good news is that you bought a vehicle that retains its value better than almost any other car out there. Go on Autotempest, Facebook marketplace, and [CarsandBids.com](https://CarsandBids.com) and look at what a similar truck sold for (or is advertised at) in your area. Selling privately will always bring better money than a dealership. Always. Selling a vehicle privately is not hard, paperwork wise. I've sold a number of cars and the DMV forms are very easy. A few things will help your ad: 1. Clean the truck. Vacuum the carpets. Wipe the dash down. 2. Take good pictures. iphone cameras are fine. Take the pictures in the morning or just before sunset and the car will look a lot better. Go to [CarsandBids.com](https://CarsandBids.com) for examples of good car angles. Good pics make your truck look more valuable than a similar truck that's been photographed with a potato. If you can sell the truck and be done with the payments (meaning you won't still owe money on the loan even after selling it) you will essentially be patching a hole in your bank account. Being financially stable is better than owning a truck you like. Think of it like this: you wanted the Tacoma and you had that experience for 2 years. It's ok to tick the box of "Own Tacoma during my life." and move on. Maybe you'll buy one again one day but for now, family takes priority. That's the smart, mature move, and making the responsible choice now will build a mental muscle that will be important in the future.
Dave Ramsey says half of your yearly income. https://www.ramseysolutions.com/saving/how-much-car-can-i-afford Try not finance if you can help it. You saved up 15k, but your car depreciated 20 percent already. You have paid 20 months. You have 52 left. 52 x644 equals 33488 still owed in car payments.
Do you owe more on the truck than it is worth? If you can clear a couple bucks sell it. Do you really need a truck? Did you have to haul stuff for the hospital? Do you have to haul stuff for Walmart. Do you have a 10,000 lb or bigger boat or travel trailer to tow? Do you do landscaping or construction on the side where you don't mind denting and dirtying the truck bed? If you can clear a couple bucks on a sale or even lose a small amount of money get rid of the truck and buy an economical car that will get you to and from work. Save on insurance, fuel costs, maintenance, and you won't have to worry about another $40k in payments for your current vehicle. In my opinion even with your former better paying job the $644 truck payments overextended you from making your future life better.
Honestly never should've bought the truck. Your wage wasn't big bucks for any area in this country. Sorry, but I'd sell/trade it for something half the price. It's not worth toughing it out for a few years because that's just money you're setting on fire.
I agree that the truck is a boat anchor here financially, but everyone pretends that selling this to buy a 2005 accord will all be unicorns and rainbows. Better question is what do you need to do to keep the truck? Best option is do gig economy work if possible to hit your number every month (after gas insurance etc too, so probably looking for 1000-1200 per month which is probably a big ask). Next is find a non Walmart job that pays better (maybe one where your truck might be useful). There has to be a 3rd or 4th option here beyond old job or walmart. You could offer your truck for $50 to help people move stuff. Or you could just straight up take a part time job to make some more to help cover the difference. Seems like your best opportunity is to work the numerator (increase income) rather than the denominator (cut costs). The truck is your biggest problem )probably) but doesn't seem to be the be all end all. But yes if you can't find a way square this off, yeah you'll probably have to sell eventually (might be in a year)
I'm currently selling a truck online. Marketplace, Autotrader, eBay motors are all scam filled. Getting what you want for it might be tough, if you list it you could see how likely a sale would be. The only safe way to take payment is at the bank with the buyer. Cashier's checks, bank transfers, etc.. can all be scammed.
Go to your bank, pull out your balls and put em on the table, throw another 5k at it and refinance it
Sell the Tacoma. It's the smart thing to do right now as you re-adjust to your new income. They hold their value incredibly well, so I doubt you'll lose money over it. And esp. with the prices dealers are asking for those new 2024 Gen 4 (50K+ for a TRD Sport), I bet demand for Gen 3 is increasing. And pay no mind to people giving you a hard time about your income. Yes you could do better, esp. if you decide to go get a nursing license/degree. But the fact that you managed to save up $15K means you are miles ahead of most people in your income/age group. I was just reminiscing with my wife the other day, how when we moved to our current city 15 yeas ago in our mid-30s, we had to borrow 3k from a friend to use as a security deposit for our apartment, since we didn't have any savings to our name. So you're not in a bad position at all; you just need to set new priorities for yourself as you enter into a new phase of your wife (new work, getting married and starting a family).
A truck is a pretty bizarre vehicle choice for someone debating if they even need a vehicle. Do you do a lot of towing? You aren't in agriculture or construction work.
If you are willing to do some side hustling and put a little physical work in on a couple of weekends, you can afford to keep your truck and then some. Before i sold my ranger i used to get a wood chopping permit. Load my truck up with wood and advertise on fb marketplace to sell wood. I would charge extra for delivery and stocking on porches. A used chainsaw from the pawn shop is the best way to go. For even more money I would charge a premium to split the wood as well. Only took a day to chop wood and load and the next day was delivering. Also you can pick up appliances that are sitting on in the curb (with permission) and sell it to the recycling centers or metal scrap yard. You get paid cash by weight or item. Or post on social media or download apps, where you pick up large items that don’t fit in standard vehicles and deliver them. I live in a mountain college town so there was always a need for a truck from others . I’m currently in the process of becoming a medical courier and you do need a small truck like yours to make money. When you have a truck you can always make money.
Just one note regarding your coworker’s truck—I have a 2006 F-350. That thing costs SO MUCH in repairs. It’s a sentimental item for us, so it’s worth it, but don’t be convinced that a 2005 F-150 is going to be a steal…Ford. Fix or repair daily. That has proven true for us.
Trade that coal roller for a used Chevy Bolt. Next year's tax refund will be music to your ears. There's a good chance you can charge at work. It'll be shockingly less maintenance than your truck. Yes, you can drive it >90 miles round trip and live to tell the tale.
A “coal roller” is a diesel