If you are a long time reader of ELYM you know that I tend to make some rather “out of character” moves now and then. Usually these out of character moves have to do with automobiles. If I was smart, I think I’d just sell everything and head on over to become an Amish man or a Mennonite. At least in their culture, there is one kind of transportation; a black cart being pulled by an animal that poops right in front of you. While the poop doesn’t sound too appealing, the lack of choice in vehicles might drastically improve my long term finances.
I bought another truck. Before you pummel me and excommunicate me from the rather large “circle” of personal finance bloggers, please hear me out. For starters, I have hated my new Toyota Tacoma since I bought it in 2006. I think the quality sucks and Toyota just wasn’t able to make it right. I’ve been driving it for about a year and a half and have watched it depreciate (although not as badly as many other brands). With the huge commitment to build our lake house, I could really use the money that I’ve got wrapped up in the truck. I paid cash for the truck originally so it really is a lot of money to have tied up in one automobile.
So here’s what I did. A friend of mine announced that he had decided to buy a new truck. He bought a 2000 Toyota Tacoma brand new back in 2000. Ever since I bought the 2006 Tacoma, I’ve missed my old 1997 Tacoma. More than once, I’ve wished I could go back in time and not have made the 2006 purchase. Since I can’t do that, I’m doing the next best thing; cutting my losses. I was able to buy the 2000 at a very good price. It is 3 years newer than what I had before and has half the miles. By my calculations, I should be able to get many years of loyal service out of it. The best part is that if it breaks, I know how to fix it.
What am I doing with the 2006? I’ve got it all cleaned up and have put it up on Craigslist for sale. So far I’ve had a few “virtual tire kickers” and am hoping to convert them in to real tire kickers in the next couple days. Once the sale is complete, I’ll have a TON more cash that we can use to finish up the lake house. The sooner we get it done, the sooner I can start accelerating paying off the lake house completely. Believe me, it will feel great to have one house paid for and the other with over 50% equity in it. It’s all part of my master plan to build wealth in multiple ways. This plan would be much easier to execute if I’d quit sandbagging myself by buying a new automobile during moments of weakness!
I don’t think its a bad decision, I think it may pay off nicely for you!
good to have you back!
While I like my 2006 Honda Ridgeline, I’ve pondered whether I really need it (the answer is no). I’ve considered downgrading to a smaller truck, or just selling it outright and driving our old 1997 pontiac grand am. However, I like having a truck, and we can afford it right now.
However, the time may come where we say “We could either do our dream vacation back to Ireland or pay for another 3 years on the truck”. It’s not just cash costs, it’s opportunity costs.
Your reasoning for “downgrading” is justified.
Don’t you hate the “buy a car” genie. I’m sitting on it right now, but there are so many nice things about the new 08s… But just looking what NOT putting that $ into an investment really dumps that net worth… Guess it could be worse. :) Nice post!
Makes perfectly good sense to me. Good luck selling the ’06!
I think you made a great choice, actually. But I do have a question, as my husband is drooling over Tacomas right now: what exact problems did you have with the newer one? Are the older models better for some reason. We think the older body style was a little more visually appealing, but I want to know if there are any other differences you’ve noticed. Thanks.
Brooke,
I’m probably fairly picky but I had to have the driveline replaced right after it was bought new. They were trying to address a “shudder” when you take off. It turns out that most of them do it and they consider it normal. That made me mad. Also, the engine is kind of noisy due to their exhaust design and the interior does not hold up to normal use very well. They put really soft plastic in there and it’s very easily scratched.
Considering how much of a premium you pay for the truck (over it’s competitors) these things just seem unforgivable to me.
Are you by chance my brother? You sure sound like him! Ha! It really does make perfect sense to me and if you are happy with the 2000, you will have gotten this out of your system and won’t resent the truck you are driving and continually looking for something else. A wise decision I think!
Hmmm. The fact that your IP address looks like it came from Washington is making me wonder…….
No, after checking your site, I don’t think you are my sister. They haven’t accomplished that amazing turn around!! Congrats on doing such an outstanding job of getting out of debt and on to financial freedom!
I’m not big on paying cash for cars, because i think cash can be used for much wiser things. Think you’re decision was great and very conservative of your part to not only get rid of yours and use the money elsewhere, but to get an older (and better) model – good luck with losing the old truck.