Stuck in The vortex

[Ed Conley]

So I'm likely not the only one, but I have got myself stuck in the new truck vortex.
I purchased a 21 Ram warlock last year, and with all the add ons,plus a residual from my 2015 1500, I was in deep from the start.
Now, a year later, not surprisingly , am upside down to the tune of about $10,000.
I checked into refinancing, but it just kicks the can down the road again and if luck maybe could save $100 a month on my $733 payment.
So, it looks like I'm pretty much stuck for the duration.
If I could do it over again, I would have never committed my self to new vehicles.
The only winners are the banks and the dealers.

 

[stevenP]

These current prices are insane. Back before the pandemic, I was buying new vehicles pretty regularly at 25% off MSRP. And at that time interest was running around 2% as well on car loans.

 

[Atcer2018]

You could refinance and continue to pay the $733 per month. The $100 savings from your present loan would go toward the principal. If you leave everything as is you’re giving the bank your money.

 

[Farmer Fran]

Do you not like the truck?

 

[Spsully]

I got t-boned in our 2018 durango, and we bought a 2019 Wrangler. The upside down wasnt terrible, but our payments were like 800ish a month. We turned around in 2021ish and refinanced with roughly the same pay off time frame but dropped our payments to low 600s. It was WELL worth the time and effort to do so. It also helps that my wife and I have several banking and credit accounts with the same bank.

 

[coobie]

I cannot imagine $700-$800 a month truck payments..

 

[gfh77665]

...but I have got myself stuck in the new truck vortex... So, it looks like I'm pretty much stuck for the duration.

Not true. Get yourself unstuck. You have free will, you can do it. Cut your debt, sell the truck. Trade into something more affordable that still is in good shape. You take a hit now but the payoff is breaking free of the debt you are in and the mentality of "I am in a vortex" and just can't get out. That's not true. You made a choice to get in, so make a choice to get out.

 

[jejb]

So I'm likely not the only one, but I have got myself stuck in the new truck vortex.
I purchased a 21 Ram warlock last year, and with all the add ons,plus a residual from my 2015 1500, I was in deep from the start.
Now, a year later, not surprisingly , am upside down to the tune of about $10,000.
I checked into refinancing, but it just kicks the can down the road again and if luck maybe could save $100 a month on my $733 payment.
So, it looks like I'm pretty much stuck for the duration.

If you can refi for less interest and about the same payment/length, it might be worth doing. But about the only solution to being upside down is strap in, enjoy the truck and make the payments.

If I could do it over again, I would have never committed my self to new vehicles.
The only winners are the banks and the dealers.

It was possible to win in the last few years. I feel like I did. But it was easy to get caught up in the weird market we just went through too.

 

[tron67j]

Manheim recently reported used prices have surged about 4% and they see more uncertainty due to the expected lack of used cars hitting the market in the next few years due to the drop in new sales during the pandemic. You might see your difference drop in the near future and may be able to sell for closer loan value.

Vehicles are generally a value depreciating item, but you don't tell us if the 10k is from the trade-in value or the retail value. If the former just refinance and put extra money toward principal and keep truck for 10 years. If the latter, you can still do refinance option if you decide to keep, otherwise figure out how much you can get for a personal loan and if you can swing difference sell the truck and get a cheap econobox to last until you pay off personal loan.

Good luck.

 

[Travelin Ram]

What has changed in the last year? It’s the same truck and the same payment. Income down? Expenses up (thank you inflation)? Is it just your perception of the cost/benefit?

Most of my regrets on vehicles were from making emotional decisions that later my rational self recognized as interfering with other goals.

The only way out is getting serious about financial planning. Written long term goals, plans on how to get there, and budgeting. Dave Ramsey stuff.

Master your money or it will make you a S L A V E for life.

(Seriously mods? ^^^ s**** is a taboo word?)

 

[Farmer Fran]

I cannot imagine $700-$800 a month truck payments..

What is the right payment?

 

[Dusty]

So I'm likely not the only one, but I have got myself stuck in the new truck vortex.
I purchased a 21 Ram warlock last year, and with all the add ons,plus a residual from my 2015 1500, I was in deep from the start.
Now, a year later, not surprisingly , am upside down to the tune of about $10,000.
I checked into refinancing, but it just kicks the can down the road again and if luck maybe could save $100 a month on my $733 payment.
So, it looks like I'm pretty much stuck for the duration.
If I could do it over again, I would have never committed my self to new vehicles.
The only winners are the banks and the dealers.

We can have empathy for you, but the truth is if you purchased this vehicle a year ago you bought at a bad time in the market for buyers. I have no idea how you negotiated the vehicle purchase, but if you were upside down on the old vehicle going in, you were only kicking the can down the road and making it worse.

Unless you can obtain a refinance loan to close out the loan with a payoff number, like others have suggested, you may have to weather-out the storm, at least for a while.

Sorry to hear of your predicament.

Good luck.

Regards,
Dusty
2019 Ram 1500 Billet Silver Quad Cab 2WD, 5.7 Hemi, 8HP75, 3.21 axle, 33-gallon fuel tank, factory dual exhaust, 18” wheels. Build date: 3 June 2018. Now at 84977 miles

 

[Bandit1859]

So I'm likely not the only one, but I have got myself stuck in the new truck vortex.
I purchased a 21 Ram warlock last year, and with all the add ons,plus a residual from my 2015 1500, I was in deep from the start.
Now, a year later, not surprisingly , am upside down to the tune of about $10,000.
I checked into refinancing, but it just kicks the can down the road again and if luck maybe could save $100 a month on my $733 payment.
So, it looks like I'm pretty much stuck for the duration.
If I could do it over again, I would have never committed my self to new vehicles.
The only winners are the banks and the dealers.

I it’s amazing how much things have changed. I have a 2020 ram larime pretty much fully loaded. Paid 40000 now same truck is 70000. It’s just crazy. I want a new Jeep but 8-900 Payments not doing it

 

[gfh77665]

Unless you can obtain a refinance loan to close out the loan with a payoff number, like others have suggested, you may have to weather-out the storm, at

He can sell it, and break free of the imaginary "vortex" he thinks he trapped in.

 

[jejb]

He can sell it, and break free of the imaginary "vortex" he thinks he trapped in.

Tough to do if he's upside down and doesn't have the cash to cover the deficit, which would be $10K in the OP's case.

 

[gofishn]

Tough to do if he's upside down and doesn't have the cash to cover the deficit, which would be $10K in the OP's case.

Obviously has credit.
get a signature/[personal loan.
pay the higher interest rate, on much smaller amount of debt & get rid of the truck
buy a beater.

Pay $600 a month on new signature/personal loan, until paid off.
Once the loan is paid off, take $600 month and put on next, highest interest rate, debt.

Keep doing that until debt free.


Some poster commented about 700, 800, etc payments

Cardboard Box, Studio Apartment, Ranch House, all the way to 5th Avenue Penthouse
Each one of us pays for what we want need and can afford.

$50 is precious, to some.
$5K ain't squat, to others.
Like Power, Value is where we put it.
It's a Conceptualization, not a Reality.

All kinds of Power, All kinds of Value and all kinds of People.

 

[metalchewy]

Sorry to hear about this predicament.

The only new car we ever bought back in 2000, was at a time when interest was high. We payed extra for 'Gap Insurance' in case we wrecked, or had to sell it while it was underwater for the first two years we had it.

Was like $20/month, but we knew if something happened there would be no way to end the loan on a totaled vehicle if we didn't. After the car was no longer underwater we ended the gap insurance.

Haven't had a new car loan since. We just save and wait until we can afford a replacement.

It took 20 years to replace that car, but the used 2014 R/T challenger in the driveway was paid for when my wife brought it home. Same for the 2010 Ram 4x4 that I brought home last spring. Bought it with what I had saved up in the car fund.

 

[ppine]

I only buy new trucks when I can pay cash. Otherwise I buy used ones. Trucks last much longer than ever before, especially diesels. The market is likely to continue to loosen up in the next year.

 

[turkeybird56]

So I'm likely not the only one, but I have got myself stuck in the new truck vortex.
I purchased a 21 Ram warlock last year, and with all the add ons,plus a residual from my 2015 1500, I was in deep from the start.
Now, a year later, not surprisingly , am upside down to the tune of about $10,000.
I checked into refinancing, but it just kicks the can down the road again and if luck maybe could save $100 a month on my $733 payment.
So, it looks like I'm pretty much stuck for the duration.
If I could do it over again, I would have never committed my self to new vehicles.
The only winners are the banks and the dealers.

OMFG, $733 monthly? That as high as my house payment was. Condolences, sir.

I usually only buy new and payoff before drive off lot, I was looking at a 22 Sierra, but had the crappy 5.3, and they wanted 5K down and $480 for 6-7 years Plus my RAM, no way senor, hee hee. May explain why my lowly lightly trimmed RAM still in driveway.

 

[turkeybird56]

Obviously has credit.
get a signature/[personal loan.
pay the higher interest rate, on much smaller amount of debt & get rid of the truck
buy a beater.

Pay $600 a month on new signature/personal loan, until paid off.
Once the loan is paid off, take $600 month and put on next, highest interest rate, debt.

Keep doing that until debt free.


Some poster commented about 700, 800, etc payments

Cardboard Box, Studio Apartment, Ranch House, all the way to 5th Avenue Penthouse
Each one of us pays for what we want need and can afford.

$50 is precious, to some.
$5K ain't squat, to others.
Like Power, Value is where we put it.
It's a Conceptualization, not a Reality.

All kinds of Power, All kinds of Value and all kinds of People.

Anything over a "Andy Jackson" is a lot to me, LOL. Which is why, at this stage in my life, I do not carry any credit over, except for Major House Improvement, ie., Genny System, and I am paying 900% over the minimum payment till paid off. Unfortunately, next major windows, and they will put me right back behind the ole 8 ball, LOL.

ADDED: Bought my 2019 (early in Aug. 18). Traded in ED, threw out CC, paid difference after rebates and drove out of dealership owning truck, just how I am now.