Hello,
I’m looking for some advice on a truck loan I’ve been paying for a few years. It’s nothing crazy but I’m trying to shrink my monthly costs. I bought the truck used in 2020 for 45k. Money was good back then so I said why not. Side note: in the past I have not always made the best financial decisions. Anyway. On that loan a carried over some negative equity from a previous vehicle. I’m still upside down on this truck by about 5k. I still owe about 20k on it.
I want to get rid of the truck and get into something much cheaper. I don’t care if it’s higher miles or even beat up, I just want a semi reliable truck that I can still tow with.
What would be my best plan of attack to get into a better situation with lower monthly payments and lower overall debt.
I’m currently paying 700 per month
Financial advice on a truck loan
byu/Odd_Aspect3645 inpersonalfinance
Posted by Odd_Aspect3645
3 Comments
You’d need to come up with the $5k delta between what you owe and what the vehicle is worth to sell it.
At this point, I would probably just keep it.
If it was used in 2020, it’s closing in on 10 years old. That’s kind of a sweet spot for reliability and cheapness if it’s serving you well.
You’d also be losing money in sales tax, possibly registration, and the general transaction cost of selling for less than you want and paying more than you want in a trade.
Plus you know its maintenance history.
You’ve been paying for 6 years and still owe $20k!?
Do you have $5k on hand to cover the negative in order to sell the truck?
Your best option is probably to keep the truck and make more payments towards the principal to pay off the truck faster.
You’ll need a bunch of cash. You can’t get something “much cheaper” than $15k, especially with $5k of negative equity.