Post # 31
I would so buy tickets to that trip to the dealership. Just to clarify, your husband believes he can take his now used and significantly depreciated vehicle to a dealer, trade the truck in and get into a used truck with lower payments?
That is just so not going to happen. I’m going to presume this is a buy, rather than a lease. They’ll take his trade alright, but the most probable outcome is that he’ll be giving them a fair chunk of change.
At this point, he is completely upside down, ie he owes far more than the car is worth. Does the contract have an early payoff penalty?
The, our intrepid consumer is of the belief that he will simply turn around and buy himself a used truck. For cheaper payments. That’s probably happened three times in recorded history.
Interest rates are higher on used cars, and the terms are shorter.
The absolute worst thing he could to would be to go see the dealer. Your husband will have to pay the difference between what he owes and the truck’s current fair market value. It’s current value is going to fall far short of the amount he owes. Check Kelly Blue Book and NADA. The guide that dealers’ use for appraising cars is a closely guarded mystery, but it’s probably cloesest to NAD.
If he wants out, sell the truck at Carmax. They pay on the spot, you don’t have to be buying another vehicle. And their payouts have always been higher than we anticipated, we’ve sold a number of cars that way, including dh’s late aunt’s.
More likely than not, you’ll be paying for the gap. But, you’ll be rid of your very expensive albatross.
Then hubby can buy himself a vehicle that makes sense. May I suggest that you go with him to the dealer from now on.
Post # 32
Personally, if his goal is to find a cheaper vehicle and it be more practical, I don’t think there’s any reason to be upset. However, I wouldn’t like his reaction to you.
Post # 33
Unless you live in a place where you get a tax credit for vehicle trade in, it won’t be worth it. Selling privately always fetches more money than a dealer.
What is your husband doing that actually requires a 2500? Very few people I know need a truck that size as 1500s are more than capable for the average person. Even if the payments end up lower he’s going to eat a ridiculous amount of depreciation on the first truck, in the long run you’ll likely be spending more.
Post # 34
frustratedwithdh2018 : I really think it’s silly to upgrade to a 3/4 ton when he has a 1/2 ton already. Does he work in construction, excavating, etc? I actually work in construction and own my own excavating business (all in my name, but my husband does it with me). I only use our spare F-350 v10 (1 ton) for hauling our mini excavator around. Otherwise anything larger than a 1500 for daily driving is completely impractical. It sounds like he thinks the 1500 is wimpy (which is silly because those new trucks are overpriced and way fancier than they should be). I think he should keep what he has and pay it off, and not go into more debt and get something even more expensive. He’s being impractical. Unfortunately, even though he’s “asked” for your input, it really sounds like he asked with the hope you’d agree with him. It seems like he is going to do what he wants here, which is really not cool and it is a disrespect to you in the marriage that he’s not considering your feelings and advice about it all. I’m sorry bee 😞 my advice is to let him make this choice- as long as your name isn’t on the financing and payments- and let it affect him and let him decide. I would even suggest you say “I know you’ll do the right thing and make the right decision.” And let him choose what is best for the relationship.
Post # 35
I’m not sure why you are eager to want to be on the lean and title of the truck right now, OP. He’s using mom’s credit to make an astronomically expensive (for your income) vehicle more “affordable.” If he additionally extended his loan to be 5 or 6 years….you really want no part of that. It will show as debt on your credit score, and neither of you will be outright owning that vehicle until he pays it off. So whether mom or you are co-signers, the bank owns his truck. Once it or the truck is paid off and the title is actually issued to you, there’s no reason he can’t go have his mom removed from the title and you added. Maybe I’m misunderstanding your financial situation and you inherited a family home that is owned outright by you, regularly tow horse trailers, and you make solid 6 figure salaries each so this was a perfectly fine financial idea for you two. But I don’t see any way out of it now through a trade in program, and I don’t see a real reason you should want to be added to those documents yet.
You sound really bothered by his mom thing, and I can see why you would want to create an entirely isolated family with just him as a married man. He probably took your comment the way he did because he knows he cannot truly easily afford this truck, and you’ve probably said something about him being dependent on his mother’s signature regarding the truck in the past. What sort of activities do you engage in regularly in your lifestyle that requires such a heavy duty vehicle as the trade in? Is it a valid want/need or is just a preference of the two of you?
Seriously though, I can’t think of a good reason you’d want to be a co-signer on his loan or on his vehicle. On his title, maybe? But why would you want to co-sign a debt he has that you don’t even agree with?
Post # 36
sdxz554 : mirabelle007 : Upgrading to the 2500 would be very practical for our needs, however not a NEED right at this point in time. We’ve got livestock and do a lot of hauling (DH does haul a lot of different types of trailers w/ equipment, items on it) and his truck does the job okay, but it isn’t the best. So to that extent I understand him wanting to go bigger BUT he seems very narrow minded and forgets we can ask for help and borrow other people’s larger vehicles rather than go into more debt.
notmeeither : See above for the reasoning behind the bigger vehicle. I never said I wanted to be a co-signer on his loan for financing at all. I’m truly not worried about him struggling to make payments on it, its moreso that he doesn’t realize what many bee’s have said that he will end up having negative equity if he trade’s his perfectly fine and capable truck in. I’ve expressed that unless he can stay equal to or LOWER (which is highly unlikely) that trading his vehicle in would not be smart, and I especially will not be happy about it if it will negatively effect his contribution to our household.
As an update – We had a very good discussion about everything the same night I posted this. Darling Husband is beating himself up for impulsively purchasing his current truck, because its way over the top for what he needs and he doesn’t like how expensive payments/insurance is (he is always on time with payments, so that’s not the issue here). He got pissy with me when I got stern and told him I was not okay with him trading in and essentially putting himself in more debt (he doesn’t think he’ll have negative equity at all). We stopped at the dealer together after dinner and talked to the sales person and he even said that the chances of making it an even trade will be hard to come by and I think that really hit Darling Husband, funny how he listens when it comes from someone else. The trade-in idea has thus been put on the table and he just pouted and is disappointed because it’s not working out as gloriously as he realized.
Not totally related but Darling Husband does have issues controlling his temper at times and snapping. His temper and crankiness really showed through this whole process and he apologized this morning and told me he wants to go to the doctor to talk about getting some medicine to help level out his moods and talk to a counselor so we can improve on our communication skills some. THis made me pretty happy and hopefully there will be a postive benefit. This whole truck thing I think really made it dawn on him how badly he shuts me out when he’s determined to do something even though he knows its not practical.