How We Ditched the Last Vehicle Loan

Mr. BMM dropped an idea a couple weeks ago about his truck.  See his truck was the last vehicle we owned that had a loan.  Two months ago he paid off his motorcycle.  However, seeing that the truck loan was close to $26,000 made the loan seem like a giant mountain rather than a little hill.  I get it.  I’ve been there. 

I walked away from a car loan through my biological parents one day in my mid-twenties. Opting instead to ride my bicycle to work and college. It was the most freeing moment to see that I no longer owed money on a car that didn’t have a proper working gas gauge. Was the tank full? Half-full? Near empty? It was a guessing game from the start.

1 U.S. dollar banknote

When Mr. BMM dropped the idea of selling his truck above the loan balance, I couldn’t agree any quicker than saying “do it.”  Mr. BMM is certainly the thinking and pre-planning type.  I know he thought about selling his truck for a while.  I know he did his research.  And when he finally made the decision, I knew it was a good idea. 

Mr. BMM outlined his plan. Sell his truck for $28,000 when the loan balance is about $26,000 for a $2,000 profit. Put the $2,000 in savings/investments plus any return on premium for pre-paid warrantees. Continue to save the “truck payments” each month until (1) the fully paid off dog car dies or (2) the market cools off or (3) I complain about Mr. BMM driving my car.

We have an old 2008 KIA Spectra that we bought with cash for our dog. It was $3,000. Our dog loved it. My 2019 paid-off Subaru Crosstrek says clean. And our dog didn’t have to jump up or run up a ramp to a truck. We all won with the “Dog Car” purchase. Now we have the “Dog Car” and my car.

When it comes to my car, Mr. BMM knows how hard I worked to buy and pay it off in 25 months. He knows how proud I am that I finally have my very first car-title at the age of 38. The KIA is a joint purchase so that didn’t count. He said he doesn’t want this new vehicle arrangement to annoy me. I looked at him and said, “I get what you are saying. This new arrangement is going to require that we communicate a little bit about who is taking our pup for a walk with respect to your [Mr. BMM’s] rotating schedule. It’s going to require a little bit more attention to potential snow days (my car is the snow car).” [this was written before we lost our furbaby.]

But I focused on saying to him that this new arrangement gets us closer to financial independence.  It gives him the chance to retire early (I cannot wait for that day to happen) with a partial pension.  I said that this new arrangement was like a triple dog dare.  Can I really share my car with him without complaining? 

For financial reasons, I will keep my mouth shut.  Because living a life without any vehicle payments makes me feel a whole lot better about this whole financial independence retire early (FIRE) thing. 

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