Downsizing, sort of?
good afternoon everyone! hope you are doing well. First I guess a little bit of information on my current situation? if you want to call it that. Anyway right now my and wife and I own a 2015 RAM 3500...
Forum Discussion
pressure_welder wrote:
No worries there on the equity, i have about 15,000$ Positive equity. While this won’t pay for the entire used truck will certainly pay for half. Then will just pay cash for remainder.
To dig out of my car loan mess - I kept my car and kept my cash. Since I had essentially already paid most of the interest on the loan, I also kept the loan. When I finally paid off the loan I continued to pay myself by saving that monthly payment (I used payroll deduction at the time). When it was time for the next car/truck I had the cash I needed - no loan. I bought the new vehicle and continued to save a monthly payment for myself.
After we retired, the DW was in an accident which totaled the car. The insurance payment was fair but to get back into the car market we needed additional cash, which we already had because we had been saving for it.
Using this method, vehicles have been much cheaper because the bank was not involved. The lesson for me was - always use your own money, then you will automatically have more. Spend tomorrow's money today, then what will you be able to spend tomorrow?
The magic for me was not in trading vehicles, the magic is in cash management. Start small and grow big. Good luck.
