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Updated over 7 years ago on . Most recent reply
![Kameron Patterson's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/120461/1621417786-avatar-kameron.jpg?twic=v1/output=image/cover=128x128&v=2)
Should I trade in my car to improve DTI if I am a Realtor?
Looking to trade in my $30k car to improve my debt to income. However, I will definitely take a loss on it as I just purchased it 2 months ago. I recently became set on being a real estate investor and have had buyers remorse ever since.
I am getting my real estate license and will be able to write off my car and it's depreciation if I keep it.
Should I Trade it and take a loss or should I keep it and deal with the dti and being a slave to the rat race for 5 years?
Most Popular Reply
![Steve Vaughan's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/232779/1621434998-avatar-7differentways.jpg?twic=v1/output=image/crop=1200x1200@304x0/cover=128x128&v=2)
- Rental Property Investor
- East Wenatchee, WA
- 16,108
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Ok- I think I'm done flopping on the floor now.
Here's the deal. This car will continue to drop in value - eating your wealth. It will continue to eat your cash-flow and limit your borrowing options and stretch your rat race time out. Those are facts.
Oh- we're doing this for the 'tax benefits'? You've got to be kidding me. The tax you will be paying is 'doh! tax'. Homer Simpson style 'I shouldn't have done that and will pay for this lesson tax'.
There are nice enough cars for driving around clients out there for $8k. Heck, $5k. No seller or buyer or lender or tenant or title co has ever given a rip that my car is so ugly it needs a name. Gives us bonding time while we are push-starting it together.
The good news is - you have seen the error of your ways and I have hope for you @Kameron Patterson!
I was flopping on the floor, flinching and foaming at the mouth from the responses from others here. Getting a new lender or putting off freedom for this car is ridiculous. @Dave Foster and I could buy any car we want, but we choose to drive functional beaters. Who you gonna listen to?