I know I’m stupid

[keepstronghavefaith]

Bought a truck when I was 20, dream truck but yeah I’ll admit it was kinda dumb.

Any advice on how to get a cheaper monthly payment ( Currently 1,200$ a month )

6 years left on the term, I make over 110k a year and I’m still living at home. I’m not struggling it’d just be nice to invest more of my income than I already am

Interest rate: 9.99%

Current Term: 7 years
Remaining Term: 6 years

The buyout price is definitely cheaper and my dumb ass thinks I can go to a different lender and get a better interest rate on the buyout price making it cheaper monthly.

Help me out

P.S. I know I am dumb don’t have to say it again

 

[charis9595]

@keepstronghavefaith You don't have a ton of options:

1) Sell the truck, buy something cheaper

2) Refinance the loan and get a better rate

3) Put extra money on the loan to pay it off as quickly as you can

If you want to keep the truck, 3) seems like your best bet (probably combined with 2), if possible). If you care only about maximizing your total wealth, 1) is best. Up to you.

 

[keepstronghavefaith]

@charis9595 Best advice I’ve received yet. Thanks g

Most of my money is locked up in HISA’s and i max out my TSFA and RRSP’s.

Cash on hand isn’t a lot but if I could more up it’ll save me in the long run.

Thanks again

 

[auguste22]

@keepstronghavefaith There is no point in getting 4% in a HISA when your truck interest is 10%... Take those out and put it towards the truck

 

[tawmee]

@keepstronghavefaith Mate, there's no way you're making 9.99% growth on your investments. Pay down your loan before savings.

 

[resjudicata]

@keepstronghavefaith Pull from your TFSA to pay down the loan

 

[bobve2]

@resjudicata Now would be a great time to pull from the TFSA so you get the contribution room back in January as well.

 

[charis9595]

@keepstronghavefaith You'll probably do better investing in your truck loan than any other sort of saving (TFSA, RRSP, non-registered HISAs). 10% interest is a lot. You pay your loan with after-tax dollars, so you'd need to be making almost 14% for any non-tax advantaged investments, assuming you're in Ontario (numbers vary slightly depending on your tax rate).

 

[jlmsing]

@keepstronghavefaith I use this excel sheet to punch in my loan details and it brings up an exact amortization schedule. I then put in extra payments in this excel to see how much I save on interest on various amounts and timespans.
Its the best excel sheet ever.

https://www.vertex42.com/Calculators/auto-loan-calculator.html

 

[minimunchkin]

@keepstronghavefaith Dude you don’t pay for rent or groceries and you make 110/yr. Pay that shit off in a year.

 

[keepstronghavefaith]

@minimunchkin Yeah I spend money on goin out as well, but I’m definitely gonna double down on payments

 

[minimunchkin]

@keepstronghavefaith I had a 30k loan at 20 and was paying bills, rent, groceries, and, going out. Payed it off in 1.5 yr making like 60. You can do it

 

[keepstronghavefaith]

@minimunchkin Like your name truck is a trd pro, and thanks boss

 

[minimunchkin]

@keepstronghavefaith Nice, I got a 2nd gen SR5

 

[ktyler]

@keepstronghavefaith Hahaha, you will find no sympathy here. The answer to your inquiry is ridiculously simple. Pay down the loan faster if you want to avoid interest expenses. Amp your payments up to $2,000/month.

 

[mayito7777]

@keepstronghavefaith Park it in Markham and let it get stolen.

 

[keepstronghavefaith]

@mayito7777 I like the way you think Yellow

 

[ruddyjasper]

@keepstronghavefaith You're just doing what previous generations did, namely buy a fancy vehicle representing over 50% of your gross annual income. I did the same in the late 80s.

However, in the late 80s a family could buy a home for roughly 2x gross income. Today it's more like 10x, so this type of vehicle purchase puts you much further into a debt hole.

 

[paymanp]

@keepstronghavefaith Triple up on payments, sell it, see if you can get a lower interest loan, pay off truck off, then only worry about loan.

I suggest tripling up payment if you love the truck and want to keep it. You make over 9k and live at home. Toyota will last you a long time.

If you don't really care about having a truck sell and downsize to a car or suv

 

[keepstronghavefaith]

@paymanp Literal dream truck, It suits my hobbies and fits my job as well..

Will probably end up putting more down & paying it off quicker