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Pay truck off, or upgrade kitchen?


Bow Commander
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Hey all, 

My wife and I were planning to pay off my truck in a couple days. It's only about 6k at 3.49% interest. The payment is about $175. I've always liked the idea of being car loan free, even if the payment isn't a large one. However, we have been wanting to upgrade the countertops in the kitchen and update appliances to new stainless. Should I use that cash to invest into our home, potentially increasing its value, instead of just dumping it into a car loan that doesn't really have a negative affect on our monthly budget? I'm leaning towards yes. The truck is already a decreasing asset, the house is very much an increasing asset in our market. Seems like the 6k would best be put there, then after that expense, we can start putting more towards the truck loan. 

Any thoughts on this? Thanks in advance. 

Edited by Bow Commander
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We've still got the starburst-speckled counter tops.  Probably from the 50's.  Only in most places, the speckles are worn off.

It's just fine, because I don't care.

I haven't had a car payment in about 20 years.

I basically only save money.  And sit on it.  Can't think of anything I need.

And that's all I need.

Except, frequently, some crap from amazon.

And that's it.  That's all.

and the insulated firehose hoodie-vest I just ordered from Duluth.

And that's allAll I need...

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My advice, which wont't necessarily jibe with everyone's here, is if you can handle the car payments and you're making necessary upgrades (i.e.appliances are crapping out or getting there, etc.) upgrade the kitchen.  If not, pay off the truck and save that payment every month for kitchen upgrades.  You can always upgrade appliances one at a time and do cosmetic stuff when you have saved up.

Edited by jk_226
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52 minutes ago, Bow Commander said:

Hey all, 

My wife and I were planning to pay off my truck in a couple days. It's only about 6k at 3.49% interest. The payment is about $175. I've always liked the idea of being car loan free, even if the payment isn't a large one. However, we have been wanting to upgrade the countertops in the kitchen and update appliances to new stainless. Should I use that cash to invest into our home, potentially increasing its value, instead of just dumping it into a car loan that doesn't really have a negative affect on our monthly budget? I'm leaning towards yes. The truck is already a decreasing asset, the house is very much an increasing asset in our market. Seems like the 6k would best be put there, then after that expense, we can start putting more towards the truck loan. 

Any thoughts on this? Thanks in advance. 

The truck is a depreciating asset to which you are still paying interest (you are losing money).  Your home is likely appreciating.  The countertops and appliances matter not within that equation unless you are selling it, right now.

Pay off the car loan.

Save money.  When you can upgrade, do it and enjoy.

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3 minutes ago, Al Czervik said:

The truck is a depreciating asset to which you are still paying interest (you are losing money).  Your home is likely appreciating.  The countertops and appliances matter not within that equation unless you are selling it, right now.

Pay off the car loan.

Save money.  When you can upgrade, do it and enjoy.

I like your logic. Losing money financing a depreciating asset. Makes sense to eliminate it first. 

33 minutes ago, Huaco Kid said:

 

and the insulated firehose hoodie-vest I just ordered from Duluth.

 

I just checked those out on the website...look damn nice! 

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Having debt sucks. I have non and it’s great.

But I’ll give yuh a different view. Most will have a car payment for most of their lives. Yours isn’t bad. My view is keep paying on the truck. When it’s paid off, out that amount into a savings account for the next one and repairs. Then, drive the wheels off it for as long as yuh can.

Putting th eminent into the kitchen will increase its value. And both yuh and your wife will get enjoyment out of it.

Or, how’s your retirement savings? May want to invest it for that.


Sent from my iPhone using Tapatalk

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13 hours ago, Bow Commander said:

Hey all, 

My wife and I were planning to pay off my truck in a couple days. It's only about 6k at 3.49% interest. The payment is about $175. I've always liked the idea of being car loan free, even if the payment isn't a large one. However, we have been wanting to upgrade the countertops in the kitchen and update appliances to new stainless. Should I use that cash to invest into our home, potentially increasing its value, instead of just dumping it into a car loan that doesn't really have a negative affect on our monthly budget? I'm leaning towards yes. The truck is already a decreasing asset, the house is very much an increasing asset in our market. Seems like the 6k would best be put there, then after that expense, we can start putting more towards the truck loan. 

Any thoughts on this? Thanks in advance. 

Generally speaking, $6K would be rather light $$ for all new appliances, granite counter tops, under-mount sink, tear-out, disposal, plumbing, electrical, installation, etc.

YMMV.

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13 hours ago, Bow Commander said:

Hey all, 

My wife and I were planning to pay off my truck in a couple days. It's only about 6k at 3.49% interest. The payment is about $175. I've always liked the idea of being car loan free, even if the payment isn't a large one. However, we have been wanting to upgrade the countertops in the kitchen and update appliances to new stainless. Should I use that cash to invest into our home, potentially increasing its value, instead of just dumping it into a car loan that doesn't really have a negative affect on our monthly budget? I'm leaning towards yes. The truck is already a decreasing asset, the house is very much an increasing asset in our market. Seems like the 6k would best be put there, then after that expense, we can start putting more towards the truck loan. 

Any thoughts on this? Thanks in advance. 

If you MUST do both and can only pay the cash on one - pay off the truck and use a home equity loan to do the kitchen.  The equity loan will almost certainly have lower interest.  But verify that first.

But look into how much you'll actually be increasing the value vs the spend.  

But I like paying off the truck and saving the money to do the kitchen.

Edited by SC Tiger
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My son and his wife are upgrading their counter tops to granite this week.

Personally, I would pay off debt.  Especially any credit card debt. 

But of course in the end you are going to do what she wants.  My guess would be the kitchen. 

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