Economic choices?

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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!
 
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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.
 
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.
 
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.
 
By the time other expenses start to go up, if they go up, you should have this paid off, I would think...
 
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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.
 
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.
 
Please stay on topic, diverging into off topic political commentary helps no one.
 
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.
 
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.
 
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
 
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.
 
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?
 
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.
 
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?
 
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.



EXACTLY RIGHT! I always live way within my means. I have learned from 2 older mechanics: live like you are poor and dont be dumb or have a lot of "I need items"
 
My advice would be to ignore the internet ramblings of those devoid of any knowledge of either finance or economics.
Too many crazy scenarios out there promulgated by those with zero education in either.
If you've only put 115K on the older guy in the past nine years, then you don't drive enough to worry about which vehicle to preserve.
In your field, loss of job should be the least of your concerns ATM.
Personally, I'd put miles on the old guy as a matter of preference but only because the marginal fuel consumption means nothing given current fuel prices.
With its current mileage it has years to go anyway.
The Ecoboost Fords seem to have held up really well in use, so I wouldn't be worried about preserving that truck either.
 
As a former car salesman, I fully endorse this plan. My next car will be a 14-15 GS350 AWD F sport, but I want a clean one free and clear so I decided I had to wait another 12 months until I had more money and they cost 5-10% less.
 
As always, a great way to keep transportation costs down is to purchase a new vehicle at a steep discount, maintain it very well and keep it for the majority of it's useful life. For trucks, that seems to be beyond the 200,000 mile and/or 15 year mark.

Short of purchasing grandma's very low mile used car, for half it's real value, the cost per mile of the above is about the lowest possible.

Transportation costs exceed 50 cents per mile with a normal car and can easily top a dollar per mile with a high end truck. Capital costs (purchase price per mile) may not be the major expense over the life of the vehicle. As fuel, insurance, tires, brakes, services and repairs can add up to considerably more than may at first be expected.

It's not unusual to spend $2500 on fuel per year in a pickup truck. Insurance may not be cheap either. Add in service and repairs and the cost per mile of these items may exceed the capital cost per mile.
 
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