Well it seems like I will take a pass on buying the new F-150 after contemplating it for the past 2 months or so. I just graduated from UT and wanted to reward myself with a new truck (I currently have a 2000 F-150). But I got to thinking about it and finally came to the conclusion that I don't want to be paying for a truck for the next 5 years. I think that saving money for a house would be in the best interest for me since I can make money off of a house, but I can never make money off a vehicle.

It's been a tough decision to make, but I think ultimately in the long run, after I get my engineering career on track, I'll be able to go out and buy a new vehicle without thinking twice about it.

However, I may buy a JetSki.

 

Uh...ok...???

 

Your loss.

 

I'm gonna sleep better tonight knowing this...

 

As long as your current ride is treating you OK, you made a wise (IMHO) choice. You now have the opportunity to get settled in a job and a place to live and see how the finances shake out. Interest rates on houses are still pretty good, so your timing is right.

Even one year's truck payments can amount to a healthy sum. About what you would want to have in the bank to cover emergencies. The last thing you want to do is overextend yourself financially. So, as long as your truck is doing OK, you're probably smart to stick with it for a year or so more.

Dave...

 

I agree...but I wouldn't even buy a jetski Save your money for a house. My wife and I made a few simple sacrifices, didn't blow all our money and now (me at 34 and her at 30) have our house paid off (built new, on our own piece of land in 1996, no subdivision), no credit card debt...nothing. The only thing we owe on now is my truck. We did a home equity loan for that and we'll drag it out for the tax deduction on the interest....now that we have no good deductions.

Save your money. It's very tempting to spend...I know.

 

Isn't the money on a home equity loan only a tax deduction if you use that money for home improvements? I didn't know you could borrow money for a car and claim it on your taxes. I don't know, that's why I'm asking.

 

good choice my man!

 

We were told we could do it. It's a loan on the house, so I guess they don't know what you're spending it on. I did hear there could be certain conditions where you can't claim it. I'll know for sure next spring though....lol Pretty sure it'll be ok though.

 

It's just that I was fortunate enough to finish school w/o owing any money so I don't think it would be in my best interest to go out and get into debt for almost 30 grand at age 21. My current truck is paid off so my only bills will be apartment, food, and other minor stuff. I just think that I should wait awhile until I make a major purchase.

 

A 2000 F150 isn’t exactly chopped liver and with a house, you’ll have equity.

Good decision.

 

A home Equity Loan is usually a second, or 3rd mortgage therefore the interest is deductable in many cases

 

But my question is "What are those cases?". If you could get a good rate on one, then you would be stupid not to buy your new car with it and have the interest to claim. I've seen ads for home equity loans that say, "Your interest may be tax deductable. Consult with your tax advisor." So it's not cut and dried that all interest on a home equity loan is deductable. I want to know what is.

 

First and foremost, it's your money and I admire someone that's in your shoes for making a very well thought out decision such as this. Money isn't something to take lightly and, obviously, you've bucked the trend of excessive spending and have decided to pursue something where you can build equity and value.

In no way shape or form would I, personally, regret a decision such as the one that you have made.

Personally, I applaud you for your decision despite what many here may say. You have to think about #1 in a situation where 40K is involved.

Good luck in whatever you do Nick. It sounds like you've got a great head on your shoulders. You're more than welcome to hang out here because, as a F-150 owner, you're among friends (even though some of the first responses seemed very one-sided and closed-minded).

RP

 

When a person gets an equity line of credit using a property as security, the IRS couldn't care less what you do with the money. BUT, I think the property MUST be your primary residence. Having tax discussions on an F150 forum serves no purpose