Join Date: Sep 2014
Location: Summers in YT / Otherwise SWPA
Thanked 86 Times in 78 Posts
iTrader Score: 0 reviews
There are hidden/built in expenses in trading one vehicle for another. Right now you have an unrealized first year depreciation loss putting you underwater. The trade you contemplate makes that a realized loss, and then you immediately have another on the new truck. I doubt you'll pull much money out of the trade - and the reduced monthly payments you likely expect are an illusion produced by decreasing the amount of your payment going to equity and more going to interest. Put another way you're eating 2 first year's depreciation cost in order to lower your payments. I think you better recheck those "saving considerable amount of money" calculations. You're likely digging a deeper hole for yourself.
I expect the 6.4 will, in a drive-ability sense, get you there and back satisfactorily. I also, expect,if it's hilly country you'll not like the MPG or high revs your running on the uphill grades.
So, here's another approach to think about. Look at all your expenses, and see where you might cut back; dinners out, cable TV/entertainment, etc are good places to look. Secondly look at your debts. If there is one that can be paid off fairly quickly, get that done as soon as possible to eliminate that monthly payment. Then start putting at least a significant part of that payment toward your highest interest loan. Likely the monthly payments on that loan are based on the outstanding balance, so you could over time reduce the amount of the payment. However, I[d encourage, working hard to get that one paid off too.
2015 RAM 3500 CC LB SRW, 4x4, Aisin, BigHorn, 8.4an, Husky-X, Duraflap, cabin air filter, LTX MS/2, Maxiscan MS310, Super Z cables, US Cargo 60K recovery strap. Also 1998.5 NV4500, RWD