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Discussion Starter #1
I have been contemplating selling the Titan and getting something different. Primarily due to gas mileage, but also because of the short bed on the crew cab. I have to have the crew cab, but really need at least a 6.5' bed. That need really limits my options to a 3/4 ton truck, which is fine, or the Titan long bed (getting a little too long in my opinion). The engine choices in the 3/4 ton really suck for economy or price (economy = gas, price = diesel).

My other option is to keep the Titan since I really haven't had any major issues yet. My issue is my $600/month payment. I have 2 yrs left at $600 with a 6% int. rate. I can refi at about 3.5-4% for 4 years and cut about $250/mnth out of that payment. I am about to get another vehicle to use as a daily driver, so the T won't be getting the miles cranked up on it any more. It will primarily be my weekend hunting/fishing/trailer pulling vehicle.

Opinions. I can't figure out what route to take :(

TIA
Bret
 

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Doing a re-fi is certainly an option. It doesn't cost you anything to re-fi a vehicle. As for getting a second one as a daily driver, that's sometimes tough to justify. On the second one there's maintenance and insurance to take into consideration which can sometimes get you no further ahead than what you pay in gas right now. :dunno: If you re-fi, take the 4 year term to get the rate and then find an amortization table out there on the web and find out what payment you'd have to make to pay it off in the same amount of time as what you currently have left, and then make that payment. Even at the lower rate, if you're doubling the amount of time to pay it off, you're not really saving much if any in interest. Just depends on whether you decide to do the second vehicle option as to whether it makes more sense to pay in 2 years or 4.
 

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4 percent looks to be about 12 bucks a month cheaper on interest alone if you continued to pay 600.
But how much will they charge you to refi?
 

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I would refi it but still pay $600 a month . You will have it paid off in 12 months. Don't count on getting great MPG with a diesel and the up keep is double .
 

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If one payment is $600 a month, and his interest difference is (as Walleme states) $12 bucks a month, he's only going to save $288 in interest over two years. Not even one month's payment, so no, he won't have it paid off in 12 months. It'd be paid off in 23 1/2 months. Actually, he might save a little more than that, so call it 23 months even.
 

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Ouch. 2 years left at $600 or refi adding 2 more years? That sucks. I wouldn't even know what to tell you. I guess I'd probably go with the refi, but no, no I wouldn't. I know what I'd do, but it's not the smart thing to do. I'd trade it in and get a new one that is what I wanted. That's what I'd do, but that's not the smart solution.

Here's the smart solution, I think...

Months Left Payment Amount Total Paid
24 $600 $14400
48 $250 $12000

The smart thing to do is refinance. In the end, you'll save $2400.

Good luck.
 

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If one payment is $600 a month, and his interest difference is (as Walleme states) $12 bucks a month, he's only going to save $288 in interest over two years. Not even one month's payment, so no, he won't have it paid off in 12 months. It'd be paid off in 23 1/2 months.
Shoot, that's what you should do. Refinance and keep paying the $600. Of course this probably means that you can't get a daily driver for a year, but hey, it'd be paid off then!
 

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I was thinking of doing the same thing on my truck.. I'm paying $500 a month. I'm almost in the same situation as you.. want to lower my payment.. can refinance for a lower rate.. drop my payment in almost half.. but then have to start from scratch again with a 4 year payment.

My goal is to basically keep my truck until it dies. I never plan on getting rid of it, so I'll never have to worry about trading it in. My dilemma though, is that I want it paid off ASAP.. because once my payment is over with, I plan on purchasing a cheap small economy car. I want to get that small economy car sooner of later, especially being gas prices aren't going down anytime soon. I don't want to wait another 4 years.. because the gas savings alone with my small car will make up the difference had I refinanced my truck.

After weighing the options, I've decided to keep the truck and pay it off. Refinancing has it's pro's and con's. Obviously the pro's are that your payment goes down, but the con is that you'll be paying for another 4 years. My truck will be a few years old in that 4th year, and it would be hard for me to still be paying off a truck that is 6 years old or so, and still paying payments on it.
 

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There isn't a pre-payment penalty on a vehicle loan, so doing a re-fi doesn't preclude you from being able to still pay it off in the same amount of time you have left.
 

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Ouch. 2 years left at $600 or refi adding 2 more years? That sucks. I wouldn't even know what to tell you. I guess I'd probably go with the refi, but no, no I wouldn't. I know what I'd do, but it's not the smart thing to do. I'd trade it in and get a new one that is what I wanted. That's what I'd do, but that's not the smart solution.

Here's the smart solution, I think...

Months Left Payment Amount Total Paid
24 $600 $14400
48 $250 $12000

The smart thing to do is refinance. In the end, you'll save $2400.

Good luck.

I have 2 yrs left at $600 with a 6% int. rate. I can refi at about 3.5-4% for 4 years and cut about $250/mnth out of that payment.
Months Left - - - - - Payment Amount - - - - - Total Paid

24 - - - - - - - - - - - - - - $600 - - - - - - - - $14,400

48 - - - - - - - - - - -$600-250=$350 - - - - - $16,800
 

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Discussion Starter #11
After looking at my available interest rates, I don't think I will go that route. The rates have come up since the last time I checked. As far as the diesel, it would be a used 06-07 Duramax or Cummins before the emissions crap. I know several people that drive them daily and get 20-22 hwy and 16-18 cty. I can't break 15 hwy in the Titan:( My other daily driver is going to be a freebie (grandmothers car) with only liability needed. I don't think it will take much to be beneficial when I drive 75-80 miles a day.
 

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Haven't seen the most logical answer yet. Pay it off. If you can't afford it, sell it.
 

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Months Left - - - - - Payment Amount - - - - - Total Paid

24 - - - - - - - - - - - - - - $600 - - - - - - - - $14,400

48 - - - - - - - - - - -$600-250=$350 - - - - - $16,800
Ahh. Thank you. I missed the "come down to..." part. I just thought he was changing to $250 per month. In that case, keep it and pay it off.
 
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