I am PCSing to Honduras for 18 months and can't take a POV. I have a 2022 Tacoma that I still owe $30k at 5% interest. It's worth $37k.
My payment is $800 per month, I can continue to afford it if I want to. Mainly don't want to deal with the hassle of getting another truck in 2026 when I move back to the US, and I simply feel guilt selling when I committed to paying it off when I got it, with the extended warranty. There's 3.5 years left on the loan, I'd rather not get a new 5-6 year car loan in 2026 to worry about when I could keep mine with only ~ 2 years left ($20k) on the loan when I get back.
Can someone convince me why the numbers would make sense to sell it or keep it?
I could potentially save $800 per month and get $14400 in the bank instead of into the truck, and just accept my losses on it. This would mean I'd be paying more interest on a new truck tho after already paying most of the interest up front on the first truck. So I'm conflicted.
Should I sell my Truck?
byu/Alert_Brilliant_4255 inMilitaryFinance
Posted by Alert_Brilliant_4255
1 Comment
I would talk to your sponsor and see what the transportation situation looks like down there. Carpool, base bus, bike, or buy a car off the lemon lot as a supplement.
Do you have a follow-on assignment? If it’s another OCONUS assignment that doesn’t allow for POV vehicle you could be paying money for no reason.
There are caveats for PCSing that DoD will pay for storage of vehicles while you are gone if a POV is not allowed.
If you can walk away with cash in hand that’s preferred, stick it in a money market or HISA that earns good interest and at least that’s something. If you had to sell it anyway when you come back, it will depreciate no matter the mileage. At least Tacomas hold their value better than others.