Bought new truck i can't afford

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Hi everyone, new here,
id like to ask advice for my situation, i bought a truck a few months ago, but my financial situation is excellent currently so i bought a house,
i work construction in the oil patch in alberta (electrician apprentice, im 23).

i will be getting laid off in a month or 2 ( as expected) and when i do, finding a job in the oil patch is a gamble in this economy and my income will half if i work in town, therefore i need to lower my monthly obligation,

i made a mistake and i know it. Not a smart financial move, not a smart anything move but im young and stupid and mistakes happen.

what i'd like to know is the best way to proceed for me... I'll break down my finances for everyone to see and give advice :

mortgage payment : 1500 (utilities inc)
truck payment 355 bi-weekly ( 64,000$ loan 0% interet over 84 months)
quad payment : 111$ bi-weekly ( 1.9% interest, i dont want to get rid of this one)
food : 300-400$/ month
cell phone : 55/month x2 (me and wife)
truck insurance : 240$/month
quad insurance, life insurance, mortgage insurance, house insurance : 200$/month
misc expenses including gas for truck : 400-500$/month

income in town : 2800$/month (me)
                           1600$/month (wife)


Im finding i waste too much money on my truck and its killing me, i hate it but i cant seem to get rid of it.
i owe 62000$ and its worth 45,000... I am considering buying a cheap truck and stopping payments on this one and letting the bank repo it (seize or sue law in british Columbia where i live)

Might be worth it to note my credit is perfect at the moment but i have everything i need so ruining it for a few years doesnt sound like such a big deal... Might help me to not have the option to buy a big boat or new toys haha...(im an impulsive buyer sometimes when it comes
to big things but im cheap on day to day things)

im open to ideas, people on this forum seem smart and willing to give advice on best course of action... Im thinking financially just letting the bank repo it would save me the most money
 

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Tl;DR
Jordan bought a house, financed a $64,000 truck, and financed a quad based on a high stable income. Turns out that high amount isn't that stable and he is going to be laid off in a couple months. He can find work, but making only half of what he's making now. He is now upside down on the truck and admits that purchase was a bad idea. He wants to know what to do to fend off financial disaster before his income is cut in half.
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jordantheoret said:   I bought a truck a few months ago, but my financial situation is excellent currently so i bought a house,

i will be getting laid off in a month or 2 ( as expected) and when i do, finding a job in the oil patch is a gamble in this economy and my income will half if i work in town, therefore i need to lower my monthly obligation,
Why buy a $65,000 truck if you knew you would be laid off 5 months later ?

How do you owe $62K on a truck only worth $45K? Did you owe more on another car than was worth?

Do you have expensive toys other than the quad? Do you need the quad?

FWIW -- Regardless of whether you were getting laid off, you really couldn't afford to buy a $60k+ car on your salary.

xoneinax said:   
jordantheoret said:   I bought a truck a few months ago, but my financial situation is excellent currently so i bought a house,

i will be getting laid off in a month or 2 ( as expected) and when i do, finding a job in the oil patch is a gamble in this economy and my income will half if i work in town, therefore i need to lower my monthly obligation,

Why buy a $65,000 truck if you knew you would be laid off 5 months later ?

  I suspect OP thought the oil boom was going to come back...

stanolshefski said:   xoneinax said:   
jordantheoret said:   I bought a truck a few months ago, but my financial situation is excellent currently so i bought a house,

i will be getting laid off in a month or 2 ( as expected) and when i do, finding a job in the oil patch is a gamble in this economy and my income will half if i work in town, therefore i need to lower my monthly obligation,

Why buy a $65,000 truck if you knew you would be laid off 5 months later ?

  I suspect OP thought the oil boom was going to come back...

I suspect OP is a troll. Get out of here with this BS story.

I'd try to sell the truck before letting it default. At least that way you can keep your credit. This is a situation where crown vic or similar $2-3k car would work. You are spending $1250 per month on that truck. That's just crazy. I'd also try to sell the quad since that will either kill you literally or financially, but your life man.

Folks, I present you with evidence we are in another economic boom.

BNizzle said:   I'd try to sell the truck before letting it default. At least that way you can keep your credit. This is a situation where crown vic or similar $2-3k car would work. You are spending $1250 per month on that truck. That's just crazy. I'd also try to sell the quad since that will either kill you literally or financially, but your life man.
  OP should definitely line up the new car disposing of the truck.

I don't know Candidate debt laws, but I suspect that the lien holder can probably go after OP for the difference in the value of the truck vs the loan amount. In that case, OP's best option is to sell the truck and somehow come up with the money -- before he owes court costs, attorney's fees, collection fees, etc. as well.

stanolshefski said:   BNizzle said:   I'd try to sell the truck before letting it default. At least that way you can keep your credit. This is a situation where crown vic or similar $2-3k car would work. You are spending $1250 per month on that truck. That's just crazy. I'd also try to sell the quad since that will either kill you literally or financially, but your life man.
  OP should definitely line up the new car disposing of the truck.

I don't know Candidate debt laws, but I suspect that the lien holder can probably go after OP for the difference in the value of the truck vs the loan amount. In that case, OP's best option is to sell the truck and somehow come up with the money -- before he owes court costs, attorney's fees, collection fees, etc. as well.



Seize or sue here, if they seize they cant sue.
I bought the truck because i already had a truck that i bought when i was 20 with the same payment at 5.25% interest, i traded it in for a 5000$ loss and got this one at 0%, and an ecodiesel so im saving abour 50$/week on gas alone, not a smart move i know.

My current salary is 110,000$/year and i have been making that for 3 years, im not in any trouble right now im just trying to plan for the worst. I made a mistake on the truck and it was an impulse purchase.
Its also a tool for work so i need a truck regardless
As for the quad i want to keep it, i dont smoke, drink, or go out much, so thats my escape.

alamo11 said:   Folks, I present you with evidence we are in another economic boom.
  Oil boom has been dead for over a year at this point

jordantheoret said:   i owe 62000$ and its worth 45,000... I am considering buying a cheap truck and stopping payments on this one and letting the bank repo it (seize or sue law in british Columbia where i live)
If you stop making payments, are you sure they will seize it instead of suing for the balance of the loan?

from what i understand the bank doesnt like to take risks and would prefer to seize and get 45,000+ and bite the bullet on the balance.
But no im not sure, also i have no idea on how to proceed with so much negative equity i cant really tack that on to a loan for any old truck.

stanolshefski said:   How do you owe $62K on a truck only worth $45K? Did you owe more on another car than was worth?

Do you have expensive toys other than the quad? Do you need the quad?

FWIW -- Regardless of whether you were getting laid off, you really couldn't afford to buy a $60k+ car on your salary.


Impulse purchase by a young guy,
I lost 5000 on my trade in ( same monthly payment, less fuel expense due to ecodiesel was my logic, flawed i know now)
Depreciation, maybe the kbb value is pessimistic, i havent taken it to the dealer yet.

And no, quad is my only toy.

I'm sorry, but we've seen this before. You have the standard recipe: "Dear FW. I have too much debt. I also have a 4-wheeler. I don't want to sell it. I probably don't want to increase my income or decrease my spending. Please help."

I know this sounds harsh but your unwillingness to part with the 4-wheeler really is a symptom of the problem.

I don't know how some people spend so little on food.  $5/day/person is almost nothing.   (And, alternately so much on some other things.)

but what are you going to use to go muddin'?

berlinsmommy said:   I'm sorry, but we've seen this before. You have the standard recipe: "Dear FW. I have too much debt. I also have a 4-wheeler. I don't want to sell it. I probably don't want to increase my income or decrease my spending. Please help."

I know this sounds harsh but your unwillingness to part with the 4-wheeler really is a symptom of the problem.


As mentioned, i dont smoke, i dont drink, i dont go out, i save more than the 50$/week that quad costs me in my lifestyle choices compared to a smoker, or someone that goes out every friday for dinner

boss..........either listen to the folks here or suffer the financial disaster for 7 years.........

if you listen to folks here, there's a good chance you will be able to buy all the toys you want in a few years.
So listen and GET RID OF BOTH THE TRUCK AS WELL AS QUAD like YESTERDAY!

Can you use the truck to gain additional income? Carsharing, odd jobs, other?

jordantheoret said:   
berlinsmommy said:   I'm sorry, but we've seen this before. You have the standard recipe: "Dear FW. I have too much debt. I also have a 4-wheeler. I don't want to sell it. I probably don't want to increase my income or decrease my spending. Please help."

I know this sounds harsh but your unwillingness to part with the 4-wheeler really is a symptom of the problem.


As mentioned, i dont smoke, i dont drink, i dont go out, i save more than the 50$/week that quad costs me in my lifestyle choices compared to a smoker, or someone that goes out every friday for dinner

  
Why do you keep comparing yourself to a smoking, drinking, foodie?  Most people dont smoke, drink, or go out every friday for dinner.

With all the friendly comments, I would have guessed this was SD or Flyertalk...

If you get rid of the truck, you'll still need to buy another one to get to work. I'm betting it will be $400 - $500 per month. Right now you are paying $700 per month.

That $200 isn't going to kill you. Find some expenses you can cut or find some side projects. You've got an actual skill and you will find another job. Don't ruin your credit over $200/month.

How in the heck did OP get

a $60k truck
a $200k House (Assuming that $1500 is about $200k)

On $52,800 total income?
Over 50% of his monthly income goes toward house , car , quad
Edit : Was 110k, op posted a follow up.

---- 
And a Quad payment that he doesn't want to get rid of?
May I remind everyone the guy who didn't want to get rid of his Jet Ski but couldn't afford car payments?

https://www.fatwallet.com/forums/finance/1448888/ 
OP you need to let them take back every vehicle and start with some cheap beaters.

forbin4040 said:   How in the heck did OP get

a $60k truck
a $200k House (Assuming that $1500 is about $200k)

On $52,800 total income?
Over 50% of his monthly income goes toward house , car , quad

And a Quad payment that he doesn't want to get rid of?
May I remind everyone the guy who didn't want to get rid of his Jet Ski but couldn't afford car payments?

https://www.fatwallet.com/forums/finance/1448888/ 
OP you need to let them take back every vehicle and start with some cheap beaters.


My income for the past 3 years has been 90-110k/year(plus wife's income).
Im just trying to plan for the worst is all, i make 2-3 times more money in the oil field over working in commercial or residential electrical.

As i said, im not in trouble right now but i might be when this plant is built and depending if i get transfered or not if not ill be working in town making less than half what i make now. ( oil field slowed down but still thousands work here)

In my opinion the 200$/month of the quad is pennies compared to the time bomb that my truck is.

forbin4040 said:   How in the heck did OP get

a $60k truck
a $200k House (Assuming that $1500 is about $200k)

On $52,800 total income?
Over 50% of his monthly income goes toward house , car , quad
Read the thread.

His current salary is $110k. The salary listed in the OP is after he gets laid off.

And, BTW, the $ values are CAD (.77 USD), not USD.
  

How much did your insurance go up with the newer truck?

The other odd thing is that your salary at 110K should be about 6000 even after Canadian taxes. Why are you only getting half that?

NoMoneyInMyWallet said:   
forbin4040 said:   How in the heck did OP get

a $60k truck
a $200k House (Assuming that $1500 is about $200k)

On $52,800 total income?
Over 50% of his monthly income goes toward house , car , quad

Read the thread.

His current salary is $110k. The salary listed in the OP is after he gets laid off.

And, BTW, the $ values are CAD (.77 USD), not USD.
  

  
Ah, if so their unemployment is much better than ours.  And yeah, I was converting to CAD.

jd2010 said:   
jordantheoret said:   
berlinsmommy said:   I'm sorry, but we've seen this before. You have the standard recipe: "Dear FW. I have too much debt. I also have a 4-wheeler. I don't want to sell it. I probably don't want to increase my income or decrease my spending. Please help."

I know this sounds harsh but your unwillingness to part with the 4-wheeler really is a symptom of the problem.


As mentioned, i dont smoke, i dont drink, i dont go out, i save more than the 50$/week that quad costs me in my lifestyle choices compared to a smoker, or someone that goes out every friday for dinner

  
Why do you keep comparing yourself to a smoking, drinking, foodie?  Most people dont smoke, drink, or go out every friday for dinner.

  People are weird. They like to compare themselves to people that make worse or similar decisions. Why not compare themselves to someone that is making the right choices? I guess it makes them look bad for something.......

I smoke, drink, and go out every Friday for dinner. At least I didn't buy a $65,000 truck. I may spend $50 more per week, but at least I don't have a $710 truck bill every month. 

Anyways. Good luck OP!

What is a Quad?

You need to learn to spend your money better or in six years tool be asking how to get out of another hole. I empathise and people here are heartless when it comes to advice. I recommend credit boards and look at handling your current debt and a long term outlook.

.

Is the quad upside down also? If you are sure you won't be sued for deficiency you might as well let quad go also if your going to ruin your credit and save up cash to buy one later if its important to you. With 2 more months of High income you should be able to you save up ~10k (2800 month difference in salary you need to get used to + 4-5 biweekly truck payments gets yu close) to buy beater truck before your is repoed if stop paying now? If not can you qualify for another car loan for cheap car now before your credit is ruined?

motsuka said:   Is the quad upside down also? If you are sure you won't be sued for deficiency you might as well let quad go also if your going to ruin your credit and save up cash to buy one later if its important to you. With 2 more months of High income you should be able to you save up ~10k (2800 month difference in salary you need to get used to + 4-5 biweekly truck payments gets yu close) to buy beater truck before your is repoed if stop paying now? If not can you qualify for another car loan for cheap car now before your credit is ruined?

Yes i qualify, maybe i should get a 15,000~ ish truck that will last me a couple years.

To answer the other questions :
Currently i clear 6000$/month, i bank 3000$/month
When i get laid off from up here i can get a regular job no problem that will pay a regular salary of 2800/month (after tax)

I have been up here for 3 years and with the economy the way it is i cant 100% be sure ill find another job up in the patch and thats why i need to change my spending to a level where i can be comfortable in a regular job.

You'v made a mess out of what should have been a great situation.

How much cash do you have on hand? You say you save $3k/month.

You'll have to decide how much not trashing your credit is worth to you.

jordantheoret said:   motsuka said:   Is the quad upside down also? If you are sure you won't be sued for deficiency you might as well let quad go also if your going to ruin your credit and save up cash to buy one later if its important to you. With 2 more months of High income you should be able to you save up ~10k (2800 month difference in salary you need to get used to + 4-5 biweekly truck payments gets yu close) to buy beater truck before your is repoed if stop paying now? If not can you qualify for another car loan for cheap car now before your credit is ruined?

Yes i qualify, maybe i should get a 15,000~ ish truck that will last me a couple years.

To answer the other questions :
Currently i clear 6000$/month, i bank 3000$/month
When i get laid off from up here i can get a regular job no problem that will pay a regular salary of 2800/month (after tax)

I have been up here for 3 years and with the economy the way it is i cant 100% be sure ill find another job up in the patch and thats why i need to change my spending to a level where i can be comfortable in a regular job.


You should get a $5k truck.

rascott said:   You'v made a mess out of what should have been a great situation.

How much cash do you have on hand? You say you save $3k/month.

You'll have to decide how much not trashing your credit is worth to you.


Im curious how important a good credit is once you have your mortgage and the toy you want, maybe im missing a consequence here? I shouldnt need financing for another couple years i wouldnt think

jordantheoret said:   income in town : 2800$/month (me)
  
jordantheoret said:   My current salary is 110,000$/year and i have been making that for 3 years
  These two statements don't add up.

jordantheoret said:   
rascott said:   You'v made a mess out of what should have been a great situation.

How much cash do you have on hand? You say you save $3k/month.

You'll have to decide how much not trashing your credit is worth to you.

Im curious how important a good credit is once you have your mortgage and the toy you want, maybe im missing a consequence here? I shouldnt need financing for another couple years i wouldnt think

  In the US, depending on the state, credit scores can be used in insurance underwriting (causing you to pay more if you have a bad credit score), and pre-employment screening (though the usage for that purpose is supposed to be limited to people trusted to handle money).

With respect to how bad of a credit impact it will be, in the worst case scenario, they don't repo the truck and you get a 30, 60, 90, 120, and 180 days late; a charge off; a new collections account; and a judgement.

That would mean you'd be lucky to borrow any money for any thing at less than 18% interest.

I hope you got the truck lifted.

stanolshefski said:   How do you owe $62K on a truck only worth $45K? 

Fully loaded pickups can easily sticker for that much. It's crazy to pay that much for a truck but new vehicle buyers do, and used buyers realize it's crazy too, ergo, the drop in resale value.

Skipping 285 Messages...
ledwards said:    Park truck at top of boat ramp. Forget to set parking brake. I watched a lady do that with their brand new Caddy. She was in tears. You'd be surprised how many cars end up drowned - legit.


just don't be this guy.. https://jalopnik.com/5863531/man-intentionally-drove-22-million-...



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