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Economic choices? #5387424 03/27/20 09:33 PM
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buck91 Offline OP
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So I wasn't really sure if this should go into the vehicles forum since its really an economic pondering. got me thinking. Without going into other details such as assets and income, we have a couple vehicles including two good daily drivers. My 2011 F150 which is in excellent condition but starting to get older with 115k miles as my wife's 2018 F150 which is, of course, in excellent condition with only 20k miles but which we still owe far too much on. Previously the general plan was to use my "old" truck for most running around to save miles on the new one but with the looming economic instabilities (recession, depression, digital currency, surging recovery- who knows!) I've been wondering if this is all wrong. Should we be conserving the old, long paid off vehicle "just in case" hyperinflation or job insecurities result in a defaulted auto loan? Not as worried about the jobs issue as we are both front line in the healthcare field but enough inflation (or introduction of currency changes) *could* result is difficulty paying for a truck and a mortgage...

Anyways, BITOG always seems to have a better and more logical opinion out there than I do so I'm hoping you all can share some of your thoughts!

Last edited by M56959; 03/28/20 05:58 AM. Reason: Removed political commentary

2018 F150 Screw 4x4 2.7L Ecoboost
2011 F150 Scab 4x4 5.0L
1996 Mustang GT 5spd/ragtop
Re: Economic choices? [Re: buck91] #5387434 03/27/20 09:40 PM
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Unless your truck payment, or mortgage, are indexed to inflation with a variable rate, I wouldn't worry about a default on the truck payment.

You say your jobs are secure. That's a great position compared with many. Count your blessings, focus on work, and don't worry about the truck payment, it's going to stay the same.


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Re: Economic choices? [Re: buck91] #5387435 03/27/20 09:40 PM
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dareo Offline
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Focus on getting super low interest rates on your loans. Invest in stocks, they are super cheap all of a sudden, and will provide quality dividends long term. Inflation will only water down your low interest debt assuming you can continue to earn money through work and investments.


2018 Regal TourX, 2016 GMC 1500 SLT 6.2, 2007 GMC Savana 6.6 Duramax
Re: Economic choices? [Re: buck91] #5387445 03/27/20 09:47 PM
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Ditto the above. Mortgage rates are dropping and so are interest rates at least in the short term. Most people do fixed term loans. Your inflation theory won't happen for several years if ever. If you look back at the last crash back in 2008, the inflation that everyone talked about never really happened. You can look at Japan too, they had low interest rates for a very long time.

Re: Economic choices? [Re: buck91] #5387447 03/27/20 09:48 PM
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By the time other expenses start to go up, if they go up, you should have this paid off, I would think...

Last edited by Astro14; 03/27/20 09:48 PM.

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Re: Economic choices? [Re: buck91] #5387525 03/28/20 02:14 AM
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xfactor9 Offline
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Inflation is the least of your worries. $2.2T is only 10% of annual GDP. It's too little to be inflationary.

If anything, you should worry about deflation because that's a greater threat during economic weakness. With the economy in a standstill, money supply won't grow (it would contract if not for the $2.2T). That would be deflationary.

Re: Economic choices? [Re: buck91] #5387540 03/28/20 03:20 AM
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vw7674 Offline
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Run the 5.0L Easier to repair, cheap to feed currently.
That would be the formula to follow till gasoline prices spike.
Which they will, six years from now.

Re: Economic choices? [Re: buck91] #5387568 03/28/20 05:56 AM
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M56959 Offline
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Please stay on topic, diverging into off topic political commentary helps no one.

Re: Economic choices? [Re: buck91] #5387573 03/28/20 06:10 AM
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Prudent thinking will tell you that when the future visibility is clouded, be conservative in your spending and living habits. I would stay with your current trucks as it sounds like they are running well.


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Re: Economic choices? [Re: buck91] #5387577 03/28/20 06:41 AM
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hatt Offline
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Don't spend a bunch of money you don't have on junk you do not need and you'll be fine. Driving patterns of newer vs older trucks is worrying about nothing. Both of those trucks should be on the road in 10+ years.


2013 F150 5.0, Delo 400 SD 15W-30, Wix 57502
2010 Camry 2.5, PP 10W-30, Mobil1 M1C-251A
Re: Economic choices? [Re: buck91] #5387623 03/28/20 07:43 AM
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Triple_Se7en Online Content
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Originally Posted by buck91
So I wasn't really sure if this should go into the vehicles forum since its really an economic pondering. got me thinking. Without going into other details such as assets and income, we have a couple vehicles including two good daily drivers. My 2011 F150 which is in excellent condition but starting to get older with 115k miles as my wife's 2018 F150 which is, of course, in excellent condition with only 20k miles but which we still owe far too much on. Previously the general plan was to use my "old" truck for most running around to save miles on the new one but with the looming economic instabilities (recession, depression, digital currency, surging recovery- who knows!) I've been wondering if this is all wrong. Should we be conserving the old, long paid off vehicle "just in case" hyperinflation or job insecurities result in a defaulted auto loan? Not as worried about the jobs issue as we are both front line in the healthcare field but enough inflation (or introduction of currency changes) *could* result is difficulty paying for a truck and a mortgage...

Anyways, BITOG always seems to have a better and more logical opinion out there than I do so I'm hoping you all can share some of your thoughts!

Conserve the older vehicle for another year, to get a better handle on the economy and your line-of-work stability.

Afterwards, re-evaluate the financial situation. Just remember it's her 2018 and whenever you drive it, put the seat and three mirrors back in the location she left it. Her radio station too.....lol


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2020 Kia Soul X-Line 2.0 MPI - a 50-50 blend of Pennzoil Platinum HM & Pennzoil Gold 5w30 // AC Delco PF1127 Ecore




Re: Economic choices? [Re: PimTac] #5387662 03/28/20 08:24 AM
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eljefino Offline
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Originally Posted by PimTac
Prudent thinking will tell you that when the future visibility is clouded, be conservative in your spending and living habits. I would stay with your current trucks as it sounds like they are running well.


Buy when there's blood in the streets. You should be getting plenty of OT you can invest, and if not OT, savings from not eating out etc.

That said keep a safety net, which it sounds like you're doing.

Re: Economic choices? [Re: buck91] #5387690 03/28/20 08:57 AM
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alarmguy Offline
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Originally Posted by buck91
So I wasn't really sure if this should go into the vehicles forum since its really an economic pondering. got me thinking. Without going into other details such as assets and income, we have a couple vehicles including two good daily drivers. My 2011 F150 which is in excellent condition but starting to get older with 115k miles as my wife's 2018 F150 which is, of course, in excellent condition with only 20k miles but which we still owe far too much on. Previously the general plan was to use my "old" truck for most running around to save miles on the new one but with the looming economic instabilities (recession, depression, digital currency, surging recovery- who knows!) I've been wondering if this is all wrong. Should we be conserving the old, long paid off vehicle "just in case" hyperinflation or job insecurities result in a defaulted auto loan? Not as worried about the jobs issue as we are both front line in the healthcare field but enough inflation (or introduction of currency changes) *could* result is difficulty paying for a truck and a mortgage...

Anyways, BITOG always seems to have a better and more logical opinion out there than I do so I'm hoping you all can share some of your thoughts!


I think you should work towards paying extra principle to get the auto loan paid off on the 2018. Having loans on vehicles is never a good thing and if one does should try to make it no longer then 3 years long.
As far as which vehicle to use the most, I guess that matters on your "vehicle plan" ... will you use up the 2011 for a few years, pile on the miles so the 2018 will be paid off and start over with a newer one to replace the 2011?


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Re: Economic choices? [Re: buck91] #5387731 03/28/20 09:34 AM
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JeffKeryk Offline
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Car loans are funny things... Easy to get and last a long time.
I suggest making payments to yourself before buying.
You can go in with all cash or a big down.
Personally I hate car loans.
Remember, a loan is a tool, not a good thing or a bad thing.
A tool used correctly will get the job done, used incorrectly and you just might break something.

Only you can answer your economic question.
Personally, living on the edge is for young people; I hate it.
Good luck.


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Re: Economic choices? [Re: buck91] #5387751 03/28/20 10:04 AM
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jstert Offline
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pretty much everyone who lived through the 1930s and 1940s is now sadly gone. yet there are plenty of us who heard their advice still around: make do or do without. live within your means. cash is king, debt is slavery. i hoped that 2008 would have helped more of us to remember or learn anew, but sadly not.

it’s nice that o.p. has both a reliable paid off vehicle and a nice new one too. enjoy both trucks: they are sunk costs, your secure and remunerative work allowed you to safely purchase them, and they give you pleasure. that said, i am astounded at the high level of personal debt that folks assume for frivolities. by my signature vehicles you can likely guess how i feel about car loans, moonroofs, rolling radar/sonar stations... has everyone with a $500/mo car payment fully funded their 401k?


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