Truck Financing

[beretzs]

Mike, remember in some states, if you trade in a vehicle, you will only have to pay the difference in the two truck, meaning, if you trade a truck for 15,000 and your new truck is 35000, you only pay sales tax on 20,000... NC, WV and a few other states are like that, so I am going ot wait until I PCS out East to look at newer trucks. Plus, sales tax is about half of what California charges. Scotty

 

[Mikes91]

Mike, remember in some states, if you trade in a vehicle, you will only have to pay the difference in the two truck, meaning, if you trade a truck for 15,000 and your new truck is 35000, you only pay sales tax on 20,000... NC, WV and a few other states are like that, so I am going ot wait until I PCS out East to look at newer trucks. Plus, sales tax is about half of what California charges. Scotty

Yeah... We got some bad news about a potential military drawdown on the way, too, so I'm no longer considering any changes in my vehicle situation until I find out just who (what career fields) in my service branch are planning to be cut... Cuts start in 2007 and will run through 2011. Not a time to have a $550/month payment and an unstable job situation.

Hope to know something by May... so will reevaluate. For now, it is hard to part with my truck. Had a buyer lined up for this weekend until I found out the news last week.

I've heard that South Carolina (where we'll be) doesn't have a sales tax on vehicles. That'd be nice... I'll believe it when I see it, though, as I'm sure dealers make up for that by charging more for their trucks...


Mike

 

[sle2115]

I've heard that South Carolina (where we'll be) doesn't have a sales tax on vehicles. That'd be nice... I'll believe it when I see it, though, as I'm sure dealers make up for that by charging more for their trucks...

Mike

No, probably won't be the dealer, the state will make up on it for license, road tax, writers fees things of that nature ...you wouldn't actually expect the state to allow the dealer to edge their cut would you?

My brother in law, by marriage and not admitted most times, was telling me that when they moved to Indiana that they didn't have to pay sales tax on used vehicles I believe. He said the usage fees on his license plates was REALLY outragous and nearly/did offset the sales tax.

 

[towcat]

Hope to know something by May... so will reevaluate. For now, it is hard to part with my truck. Had a buyer lined up for this weekend until I found out the news last week.


Mike

mike-
sooner or later you are going to have to pop your load. this "short stroking" is going to wipe out any decent potential buyer. soon enough you will garner a rep anywhere as a waffler and noone outside of a lowballer is gonna touch you.

 

[argve]

No, probably won't be the dealer, the state will make up on it for license, road tax, writers fees things of that nature ...you wouldn't actually expect the state to allow the dealer to edge their cut would you?

My brother in law, by marriage and not admitted most times, was telling me that when they moved to Indiana that they didn't have to pay sales tax on used vehicles I believe. He said the usage fees on his license plates was REALLY outragous and nearly/did offset the sales tax.

You brother in law is full of ****. We pay sales tax at the time of the sale on all vehicles and if you purchased it from a private individual (did not pay sales tax at the time of purchase) then you will pay sales tax when you go to register the vehicle. Then on top of that we pay excise tax each year on the listed value that the state DMV says the vehicle is worth - it's paid when we go to get new plates each year. This (excise tax) is offset by the lotto profits somewhat - typically it lowers the excise tax by 50% or there abouts - ever since the state has been running the gambling here in Indiana our plate fees have gone down which is a plus. This is why I say buying a lotto ticket here is a voluntary tax because the money is used to offset taxes within the state... So I like it when I see people buying lotto tickets at the gas station - keep on buying them folks your making my tax bill lower

 

[Mikes91]

mike-
sooner or later you are going to have to pop your load. this "short stroking" is going to wipe out any decent potential buyer. soon enough you will garner a rep anywhere as a waffler and noone outside of a lowballer is gonna touch you.

Don't push me out the door too fast, now.

I understand your point but let's be real. When I put the truck up for sale I was not aware that we're facing a drawdown beginning in 2007. The last place I want to be is supporting a family having found out after the purchase of a new truck that my job was going away and I'd not be able to make payments. The next to last place I want to be is supporting a family, with no truck, because I found out after selling my truck that the drawdown that is coming will cost my job. Oh yes, we have 3 horses and only 1 truck capable of moving them to our new home if I had to move my family back to my home state.

So far, my employer has not told us which career fields will be cut--only that 40,000 jobs are leaving starting in 2007. I'm hoping Congress and our leadership will let folks know their plans by May so I can sell the truck and get our family something new(er).

The buyer is not "out" any money, and I agreed to sell him the truck at a previously agreed upon price after we get to SC assuming my employment situation is expected to be stable for the foreseeable future.

The buyer was very understanding, and will be getting a good deal on a good truck. I wouldn't have backed out except for the situation with my employer, and I think most reasonable folks would understand. You don't finance $30,000 or more on a new truck when you don't know if you're going to have a job in a year.

Mike

 

[beretzs]

Should have sent him over to me. I have a truck for him.. Scotty

 

[Mikes91]

Should have sent him over to me. I have a truck for him.. Scotty

 

[towcat]

Don't push me out the door too fast, now.

I understand your point but let's be real. When I put the truck up for sale I was not aware that we're facing a drawdown beginning in 2007. The last place I want to be is supporting a family having found out after the purchase of a new truck that my job was going away and I'd not be able to make payments. The next to last place I want to be is supporting a family, with no truck, because I found out after selling my truck that the drawdown that is coming will cost my job. Oh yes, we have 3 horses and only 1 truck capable of moving them to our new home if I had to move my family back to my home state.

So far, my employer has not told us which career fields will be cut--only that 40,000 jobs are leaving starting in 2007. I'm hoping Congress and our leadership will let folks know their plans by May so I can sell the truck and get our family something new(er).

The buyer is not "out" any money, and I agreed to sell him the truck at a previously agreed upon price after we get to SC assuming my employment situation is expected to be stable for the foreseeable future.

The buyer was very understanding, and will be getting a good deal on a good truck. I wouldn't have backed out except for the situation with my employer, and I think most reasonable folks would understand. You don't finance $30,000 or more on a new truck when you don't know if you're going to have a job in a year.

Mike

mike-
don't get me wrong. It is not my intention to "throw you out the door" . But let's be honest here. This is not the first time you have a "foot out the door" already. I think we've been here once already about a year and a half ago. different site, different price, same outcome. Nothing in life is set in stone. In today's world, there is no telling what is going to happen tomorrow. I think you already answered your financial question, if you have to worry about the truck payment, you shouldn't be doing it. But that's just me. But whatever you do, buy a new truck, put a cummins in your truck, or fix up right what you currently have, a comittment needs to be made and stay with the choice. Otherwise, time and money will be lost due to everchanging direction. My CPA says that I need a truck payment for the tax write-off, heck she's been saying that ever since I opened my business, but I am a simple person, I like knowing that its mime and not the bank's. As far as I am concerned, she can go figure out some other way to get the deductions done. That's what I pay her for.
IMHO, going into payments for a new truck just to get the warranty(as you stated in the past), is money foolishly spent. Yes you have the warranty, if you deviate from any of the pm's or mod the truck slightly, you have just given the mfg an excuse to void your warranty. Plus, the depreciation hit you will take. What you pay for a new truck today is not what you will get back if you sell is a month, six months, or six years from now. Bottom line is that its your choice and you are the one who has to live with it. But I think you will sleep better if you made a decision and stayed with it.

 

[towcat]

The buyer is not "out" any money, and I agreed to sell him the truck at a previously agreed upon price after we get to SC assuming my employment situation is expected to be stable for the foreseeable future.

Mike

mike-
one more thing, just as a word of caution.....in CA, an agreement to buy/sell before the monetary exchange is a legally enforcable contract. I don't know if it is enforcable in SC, I am studying interstate contract law this last year, so I can't coment on that. But a "gentleman's agreement" evidenced by something as simple is a intent to buy/sell on a cocktail napkin is legally enforcable. I am quite sure that that is the rule in most states. Of course, you should consult your lawyer just in case if you have any questions.

 

[Mikes91]

mike-
don't get me wrong. It is not my intention to "throw you out the door" . But let's be honest here. This is not the first time you have a "foot out the door" already. I think we've been here once already about a year and a half ago. different site, different price, same outcome. Nothing in life is set in stone. In today's world, there is no telling what is going to happen tomorrow. I think you already answered your financial question, if you have to worry about the truck payment, you shouldn't be doing it. But that's just me. But whatever you do, buy a new truck, put a cummins in your truck, or fix up right what you currently have, a comittment needs to be made and stay with the choice. Otherwise, time and money will be lost due to everchanging direction. My CPA says that I need a truck payment for the tax write-off, heck she's been saying that ever since I opened my business, but I am a simple person, I like knowing that its mime and not the bank's. As far as I am concerned, she can go figure out some other way to get the deductions done. That's what I pay her for.
IMHO, going into payments for a new truck just to get the warranty(as you stated in the past), is money foolishly spent. Yes you have the warranty, if you deviate from any of the pm's or mod the truck slightly, you have just given the mfg an excuse to void your warranty. Plus, the depreciation hit you will take. What you pay for a new truck today is not what you will get back if you sell is a month, six months, or six years from now. Bottom line is that its your choice and you are the one who has to live with it. But I think you will sleep better if you made a decision and stayed with it.

Towcat,

I understand your post (and the one you posted that follows re: legal issues--hadn't thought of that) and I certainly appreciate your thoughts... no doubt you're right.

As far as the buyer is concerned... If he had forced the issue, then he would be driving the truck today. Before that point, we came to an agreement on the situation and that agreement has been fulfilled. Additionally, if I am in a position to sell the truck later, then he has dibs.

I'm used to relative stability and have in the past made decisions based on what I "knew". This is the first time I've had to sweat things out with regards to my job (guess I've been lucky) and this puts things into perspective BIG TIME. If I were single, no big deal. But I'm fairly recently married, am the only man supporting a little 4 year old girl who came as a package deal with my wife, and more recently became the father of our own son. Big changes the past couple of years.

This whole experience has been a case of mistakes made and lessons learned... and I've gotten perhaps a different perspective on how to handle new vehicle purchases in the future (don't finance more than you can get for the vehicle if you must sell it due to unforeseen job loss)...

I appreciate your thoughts.


Mike

 

[Gummee]

For those of y'all with homes with equity, there IS an alternative...

Its called a Home Equity Line of Credit. IF payment's the big worry, it'll get you a longer term (like 15 years!) and lower payments. Sometimes even lower interest rates. Oh, and if you don't go over 100% of the value of your home or $100k, that loan will be tax-deductable.

Having said the above, IF you go this route, make for sure you pay it off early! Get somewhere close to the payments you'd be making if you'd financed it thru the dealer. Cut the term to something managable while still giving you some slush room if something happens and you can't make the big payments.

If the dealer's offering 0%, go for that 'cause you're using OPM for your gain.

M
...donning flame retardent suit and slinking back to work...

 

[sle2115]

You brother in law is full of ****. We pay sales tax at the time of the sale on all vehicles and if you purchased it from a private individual (did not pay sales tax at the time of purchase) then you will pay sales tax when you go to register the vehicle. Then on top of that we pay excise tax each year on the listed value that the state DMV says the vehicle is worth - it's paid when we go to get new plates each year. This (excise tax) is offset by the lotto profits somewhat - typically it lowers the excise tax by 50% or there abouts - ever since the state has been running the gambling here in Indiana our plate fees have gone down which is a plus. This is why I say buying a lotto ticket here is a voluntary tax because the money is used to offset taxes within the state... So I like it when I see people buying lotto tickets at the gas station - keep on buying them folks your making my tax bill lower

You are right...he is full of crap. Now that you mention it, it is the annual tax he was referring to. I do believe your sales tax is less though than Ohio. I know there was something that made it all work out about the same in the end. Seems funny that if you sell a vehicle ten times, you have to pay taxes ten times as well. We are allowed family trade, gift etc. in some instances, but to be honest, most people just agree on a low selling price and pay less taxes. Not that it is legal, but it is practiced!

 

[beretzs]

Mike, what kind of financing are you going to use with the new truck. I feel like I am beating myself up, since Dodge offers, 4K in rebates for this month and next month, I will have no idea until it comes. I am figuring on financing through my credit union or maybe USAA when the truck comes in. Hard tellin right now, just wondering what direction you are going with the new rig. Scotty

 

[Mikes91]

I went with Dodge to get the $1000 off. Will refinance with USAA or Pentagon Federal... unless it looks like we'll pay the truck off very early. I've had very good luck with Pentagon on a variety of loans.

Heheheh. Pay one off... get another one... Gotta luv debt. Heheheh. GOTTA LUV THAT NEW TRUCK SMELL, TOO!!!

Mike