Big Car Payment

[Luke Carl]

Hello. I'm new to investing. Currently closing on my second investment property. Listening to BP constantly and almost done with Rich Dad. 

I believe I have pinpointed my biggest financial weakness as my vehicle. Last year I bought a slightly used terribly expensive nice truck and put 10k down on it. Recently we had to get my wife a new car and landed on a 2015 Nissan versa for $9,000 and it's got me thinking about my vehicle.

Here are the numbers.


2014 Ram 1500 Big Horn.

Retails for around 28,000 easily.

Trade in for around 20,000-21,000.

I owe 17,000. (give or take).

Current payment is $311 5 years left.

Potential new payment on additional Versa for myself would be $175 for 3 years (total guess)


Is it beneficial to try and trade this thing in on another 2015 Nissan and end up with owing $6000 or so and have a much smaller, shorter payment?


Things I need to consider.


1. We do plan to have kids in the next couple years. Can I take a kid and 3 dogs 5 hours each way to visit the in-laws in a small nissan? Not really. Should I not worry about that until the time comes?

2. We drive a lot. I'm averaging 100 miles per day. So gas will probably be half as much money in the nissan. The down side of the driving is I can't just sell my truck for 21,000 and take the 4k and buy something crappy. It has to be newer and low miles.

3. I'm a landlord. Occasionally the truck comes in handy for hauling things like lawn mowers and 2x4s.

4. Wife is concerned we need a big vehicle for the future family. (See problem #1) That being said the nissan probably has more internal room than my truck does even with the big 4 doors.


Is it a no brainer to get out of the big payment and into a payment of half the size?


Anyone good with car numbers? I could be way off but having just gone through this with my wife I think I'm pretty close.


Another option I could try to sell it privately for 25,000. But not a lot of people are going to be able to come up with that kind of money on their own.

Last thing to consider.... I'm closing on a house and plan to refi another house next so that means I can't make any credit moves for another 6 weeks or so.

Thanks