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Paying the Behemoth Off!

wjcook68

wjcook68

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Well,

I'm going to send the funds today to pay the behemoth off. I am so geeked. We sold our house and got wayyyy above asking (more than the darn thing is worth IMO) so the wife says why don't you pay off the truck. My response was, " You don't have to tell me twice!"
Now I can actually start thinking about doing things to it. I cannot believe I will have a 2020 truck that is paid for. I am humbled to say the least. I feel and am super lucky.
 
Great post and congrats. It's a great feeling, Im sure. What part of the country are you in?
 
We moved to Washington from Oregon where our old neighborhood has quickly become the keep up with the Jones', wine-drinking and brie-eating crowd. So we sold at almost $70k over asking and bought a smaller house, one story, with a decent sized yard for the doggies. We were lucky and only had to go $20k over asking. The average house is about $80,000 less up here according what I have been reading.

PS NO offense to people who like to enjoy wine and brie because they actually like them and aren't just being posers! Lol
 
Just to play devils advocate, from a strictly financial standpoint, it may be worth not just paying the whole thing off in one shot.

Assuming your rate isn't hot garbage, you're getting very cheap money at the moment. You could put that money into some investment vehicle, and hope you beat the rate - having your money make you money. Obviously some risk involved, as investments aren't guaranteed.

You could also just keep it in savings (earning next to nothing, but it is what it is), and just set up the autopay and stop thinking about it. You could even double or triple the payment if you want to speed things up. The only strong rationale here, is your money is still actual money. In a year or two, hell even in 3 months, if some massive unforeseen circumstance happens, you still have your cash. Your paid off truck won't help you there. And if you do need the cash, selling your truck will suck - or you'll have to take a loan with a rate that'll likely be multiples more than any car note.

There are also millions of variables here, that may make your choice even better or worse, but I just figued I'd toss in an opinion from the other side. As someone who really hates debt, I always cringe a bit when I hear people talk about how they just bought their 60K+ truck for cash. I mean, that's a cool flex and all I guess, but it's definitely not the most financially prudent opportunity.
 
I agree with everything you said mcarey. All of it is valid. From a purely psychological standpoint I just absolutely hate any kind of debt over my head other than the house. I think it is because my parents were always stressed about money and argued about it and that is something I care not to do.
 
mcarey said:
Just to play devils advocate, from a strictly financial standpoint, it may be worth not just paying the whole thing off in one shot.

Assuming your rate isn't hot garbage, you're getting very cheap money at the moment. You could put that money into some investment vehicle, and hope you beat the rate - having your money make you money. Obviously some risk involved, as investments aren't guaranteed.

You could also just keep it in savings (earning next to nothing, but it is what it is), and just set up the autopay and stop thinking about it. You could even double or triple the payment if you want to speed things up. The only strong rationale here, is your money is still actual money. In a year or two, hell even in 3 months, if some massive unforeseen circumstance happens, you still have your cash. Your paid off truck won't help you there. And if you do need the cash, selling your truck will suck - or you'll have to take a loan with a rate that'll likely be multiples more than any car note.

There are also millions of variables here, that may make your choice even better or worse, but I just figued I'd toss in an opinion from the other side. As someone who really hates debt, I always cringe a bit when I hear people talk about how they just bought their 60K+ truck for cash. I mean, that's a cool flex and all I guess, but it's definitely not the most financially prudent opportunity.
Click to expand...

For all we know, he's only 45 years old and already has $1.5M in retirement funds so another $60k in cash or investments is ultimately inconsequential in his circumstance.

I agree with your theory 100%, but in practice, the variables are too many given everyone's different situation.

I'd say for the 30 year old who's just getting into his 401k, youre 100% right.. hang onto the cash and invest or save it.
 
gimmie11s said:
For all we know, he's only 45 years old and already has $1.5M in retirement funds so another $60k in cash or investments is ultimately inconsequential in his circumstance.

I agree with your theory 100%, but in practice, the variables are too many given everyone's different situation.

I'd say for the 30 year old who's just getting into his 401k, youre 100% right.. hang onto the cash and invest or save it.
Click to expand...
Right, there are definitely a million variables that make it pretty hard to say right or wrong, and it's definitely an individual decision. That said, I can't think of many situations where it wouldn't be financially smarter to keep the cash on hand.
 
I bought my 2019 in December of 2019 on a 5 year loan. I started out paying extra every month in the hopes that I'd pay it off in 4 years instead of 5. Then I got laid off during covid and had to skip a few payments. When I started working again at a new job with better pay, I've been making a full payment (of the original monthly payment) every 2 weeks. As long as nothing goes wrong from here, I'll have my loan paid off in 3 years total, December of 2022. I am greatly looking forward to paying that beast off.
 
Congrats on paying off. I was able to pay mine off as well. Super stoked! What part of Washington did you wind up in? I'm near Spokane.
 
Congrats on paying it off. Save what you would have been paying every month and use that to pay cash for the next truck.
 
QCHunter -
That is a great idea!
 
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