Could use some advice on financial situation.

[Sig_Fiend]

Sell/trade in the CR-V for a ~10-12y/o 4Runner and you'll break even or end up with a few grand in your pocket, stop worrying, be happy.

Seriously, buying new or a couple year old vehicle is such a scam. Most stuff within ~5-7yrs tends to depreciate 60-80%. So many people seem to be fickle about requiring a car no more than a couple years old or so. Just an endless cycle of hopping from one car to the next every other year. Such a waste of money IMO. Not to mention the electronic tyranny added with each passing year to new models. The best part about the predominance of this sort of buying behavior is the fact people still haven't figured out there are a ton of great cars to be had on the used car market that are ~10-15y/o.

The golden age for modern cars, IMO, is the 90s to the early or mid 2000s, at least for certain makes and models. Modern enough for the creature comforts. Not so modern as to have Orwellian and unnecessarily complex tech connected to everything. Still possible to work on yourself.

[Lester Polfus]

If you're, 1) saving 20% of your gross income for retirement and can continue doing so with the new car payment, 2) have 3-6 months in liquid assets for emergencies, and 3) have no debt other than a mortgage, I say go for it.

If those three things aren't fulfilled, I'd take advantage of not having a car payment to either put into retirement savings, save for a house, etc, especially given the market conditions for vehicles and interest rates right now. Our 30s are critical for being set up well later in life, and can make the difference between retiring in your 50s with all the playtoys you want vs having to work into your 60s just to get by in retirement. Play with some investment calculators online and even just a few years of maxing a 401K in your 30s can have a dramatic effect on your retirement, even if you end up having to reduce contributions a few years from now.

I feel you regarding the want for a specific vehicle, although a different flavor. I bought a Porsche a few years ago, and I absolutely loved it. When my S.O. moved in with me, it broke my heart that I hadn't driven it in 2 weeks; she has a Toyota Venza, works 100% remote, so a second car just didn't have any use. While I could afford to keep the Porsche by most reasonable standards, it still just didn't make sense to carry such a large depreciating asset.

So, off it went. At the very least, you could look at it this way: if all other finances are good to go, put that money into a high yield savings, CD, MMA, cash account, etc and save for a couple years to buy a 4Runner outright in cash. In this course of action your money is working for you, instead of you paying the financial penalty known as "interest" on a loan.

Posts like this make me think there may be some redeeming value left in the internet after all.

I’m 52 and on track to retire at 58, because I started thinking about money the way TGS describes when I was in my late thirties.

If I’d had my head screwed on straight in my twenties I’d be retired already.

To the OP,I’d suggest spending a few hours googling “Financial Independence, Retire Early.”

[0ddl0t]

Spending $1,000/month for 5 years financing $50,000 transportation has an opportunity cost. Assuming you're 35, if you drove your CRV and put that $1,000/month into the S&P500 for the next 5 years - and then left it alone for the next 15 years - you would probably have an extra $210,000 to play with when you are 55 or $420,000 if you waited until you were 65.


Is your purchase worth the cost? Only you can make that decision - everyone has their own priorities. There isn't much sense living in self-induced poverty for 50 years only to start spending lavishly when you're too old to enjoy it, but neither do you want to be forced to work a job you hate when you're 80.

[Oldherkpilot]

That's why I drive a 24 year old pickup. It looks like crap, but I haven't made a car payment in 21 years.

If I was you, I'd keep the CRV, and set the payment amount aside, in a separate account. Eventually you can pay outright for another vehicle, or most of one at least, and avoid the current high interest rates.

That's what I did with my truck payment, and when my truck dies, I'll just pay cash for a replacement.

^^^^Do what this guy says. I call my set aside the Fleet Replacement Plan. Paying cash makes buying the next car a very different experience.

[Le Français]

Have you driven a 4Runner (I assume you have)? I rented one and drove it all over Colorado, on road and off. It sucked. It had terrible handling and a floaty, imprecise feeling on road. And, an unforgivable combination of being underpowered and having bad fuel economy. One of those vices is ok by me as a compromise, but never both. It was ok off road, but that’s not the life of a daily driver.

So, I would definitely not agonize over one of those! But if this was about a Cayenne, I would say to make sure the rest of your financial life is in order, including no high-interest loans and adequate retirement savings, and then go for it. Life really is short.

[Darth_Uno]

I’d tell most folks to just drive the paid for vehicle. That’s my financial advice.

But, it seems you’re pretty squared away. By that I mean you’re not coming up with bogus reasons you need it, and you’re not trying to impress anybody - you just admit you want it.

If your unavoidable bills (rent/mortgage, power, water, etc), groceries, and savings are covered and you still have money left, it’s up to you what to do with it. Saving more is never a bad idea.

But, don’t listen to me. We bought a brand new 2020 TRD Pro and love it.

[Darth_Uno]

[TGS]

Is your purchase worth the cost? Only you can make that decision - everyone has their own priorities. There isn't much sense living in self-induced poverty for 50 years only to start spending lavishly when you're too old to enjoy it, but neither do you want to be forced to work a job you hate when you're 80.

Unfortunately, American society has become extremely impulsive when it comes to spending and we overwhelmingly use the former as a reason to justify fiscal irresponsibility and lifestyle-creep, and the statistics show we more-often-than-not end up in the latter situation (speaking generally, I understand you're using extreme ends of the spectrum to make the point).

[GmanVP9]

To answer some questions, my mortgage is very affordable and I think fairly low for my age (not trying to sound like Im bragging). I have a 401K Im maxing out and I have another retirement account that I put a few hundred in a month. I also have a high yield savings but there isn't a lot in there (less than buying a truck outright).

As I stated in my OP I was looking at it more so from a "let me sell my car now where I can get something for it" vs waiting for the wheels to fall off and get nothing.

[Glenn E. Meyer]

I'm in the sensible long term vehicle camp and maxing out retirement. If your contributions are maximum - start another account. Being old comes quicker than you think and all of a sudden weird expenses appear. What seems like quite a bit may not be.

I'm for fun purchases but got to be ready.