“Did You Just Say You Wanted To Buy a Brand New Truck?”

[Music] brought to you by y refi refinance your defaulted private student loans today at y rei.com Ramsey well I ran into a recent situation um let me get let me just get into it but basically I've driven a 2018 for F-150 for about seven years um we ran into an engine issue to where the second the second cylinder within the engine busted um after taking it to two mechanics I got the same verdict that it's going to cost about1 15 ,000 it's going to require a whole brand new engine replacement um and so just considering my options these two uh top things have been entering my mind either one I paid a $155,000 to go ahead and get the engine replaced uh this is an F-150 that has about 127,000 miles on it or I can go towards getting a new vehicle uh and the one that I'm currently Let Me Maybe I have a lot of numbers that I've just been working through but let me just give some details but it's the exact same vehicle exact same model the only difference is it's brand new year um considering the down payment that I would make and the vehicle tradeing value that I got from a dealership um comes out to about $25,000 going in uh the vehicle price it is at quoted at is about $40,000 um and the current APR rate is 1.9% over 60 months so ballpark that's $15,000 you want to go buy a brand new truck is that what you said yeah I'm consider considering either buying a brand new truck versus you're broke you don't go buy a brand new truck when you're broke no okay okay this this this 2018 if it was running is worth what 2018 I mean if it was worth running I mean it's if it was running it's 10,000 11,000 ballpark yeah so that's what you get you got a $220,000 or $10,000 truck you got notes on this truck right uh fully paid off okay and and so you want to use this as an excuse to do something stupid and go in debt and buy a truck you can't afford no how much money do you have saved up about 20,000 saved up and what's your income 95,000 a year okay and do that 20,000 you have saved does that include your emergency fund or is this just your car savings fund is 20 grand that emergency fund 20,000 okay buying a new car is not an emergency Honey by definition it's a Bryce wants a new truck is what this is that is true there's no emergency here all right so um let's let's backtrack a little bit if you if you get a different car you need to get about a $10,000 car that you can pay cash for okay okay um that that's the wise thing to do in your situation because car payments are a mathematical ball and chain that will 100% cause you to not build wealth and stay middle class the rest of your life if you invest into a good mutual fund what you were getting ready to put put into that truck you'll be wealthy okay that that's what I want you to do and I I'm not against truck I got a nice truck I drove a nice truck to work today all right yeah yeah I know I know yeah yeah that that's not the point uh now let's Backtrack on one other thing too $15,000 for a new engine in that truck is as a nine somebody's running you up a flag so you need to look at a couple of other things number one I want you to hit two more uh good mechanics and I want you to consider two possibilities to fix the truck before you make the decision to get rid of it number one possibility is buy a salvage engine from a junkyard on a truck that was total but the engine's perfect and the engine has 10,000 15,000 miles on it and you can buy that for pennies of what you're talking about or do something like a a factory rebuilt motor not a brand new motor like a Jasper brand as an example they rebuild them and it's half of what you're talking about so you do not need a brand new engine in a 2018 that's asinine fix that's a bad repair so you need a used engine or a rebuilt engine in a 2018 then you decide if you're going to keep it or not no new trucks Bryce if you want to be rich y refi refinances delinquent private student loans for struggling borrowers learn more at yy.com Ramsey