All Forum Posts by: Kameron Patterson

@Kameron Patterson

My reason is because you are a realtor and need a reliable car to get around. Also, clients do pay attention to what kind of car you drive. Also you'll spend much more time in your vehicle than the average person, so you better enjoy what your drive.

Now, this is off the top of my head, a car loan shouldn't affect your ability to do what you need to do. You are doing a BRRRR so your properties are distressed and don't require an abundance of financing due to lower purchase price. Does a 30K car loan really prevent this????

You already put a down payment in the car, so you would take huge loss. Plus, in 5 years you have a vehicle completely paid off and will probably last you another 5 years. You could also just hold the car for 2-3 years until its value and what you owe are equal and then sell it. 

Third, and it's just me but I am a car person and for me it is part of life experience. I drive an Alfa Romeo Giulia (i know i know), but that feeling i get when I drive or the stares on the road is priceless. It is something I'll remember forever and tell my grandchildren. 

But since you described buyer's remorse I'm assuming your not that much of a car person. Once again, an aggressive goal of financial freedom requires an aggressive way to get there. So I think you just have to cut that loss and just see it as positive cash in your pocket

@Kameron Patterson

Why kind of car is it btw?

Your main goal is to get out the rat race in a short amount of time. In order to accomplish that you must live SIGNIFICANTLY below your means. I personally would keep the car for other reasons. But with your goals, you MUST get rid of it. It's really that simple.

I have read every reply on this thread some good points... If there was a vote it would be close but ultimately would be sell the car and I agree! One thing I don' get is why everyone is calling this an asset it' a car and is putting no money in your pocket which makes it a liability... Want it to be an asset drive for uber or something ..Also becoming financially free or getting out of the rat race in 2 years with buy and hold and brrrr is not going to be easy but good luck hope you can do it ..and for anyone still reading this I had a 750$ truck payment when I was 19 almost had to pay 5k for someone to take it but I got lucky someone else bought it for what I owed on it. Now I make more money and drive a 500$ car runs and looks just fine. Whenever I see someone in a really nice truck or car and someone tells me "oh he must be rich" I just shake my head and think nope just in debt ! 

It sure if it was mentioned, but don’t sell it to Carmax. They will give you a low ball offer, guaranteed. You are better if selling it yourself, if you end up selling it.

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?

@Kameron Patterson - Thanks!  I appreciate the support!

Keep in mind, just because you have a real estate license, doesn't mean you can write off the car.  You can write off 53.5 cents per mile driven for business purposes.  Gas costs 15 cents a mile, so the deduction against the car is 38.5 cents.  

If you drop the payment by $200 bringing it to $370 a month you need to drive 960 miles a month for real estate purposes to offset the cost.

Personally, I don't do things or make decisions with the tax deduction as a factor.  

@Kameron Patterson I am not a believer in fancy cars, but as a realtor you need a nice car. Who wants to buy a house with a realtor that drives a rust bucket? I am also not a fan of leasing, but I do think leases make more sense for realtors than buying. It allows you to keep a nice car all the time and it is a write off.

 Is 40k additional approval for conventional really that big of a deal breaker for your investments? Do you have the cash reserves to take advantage of it, do you have the down payment to take advantage of it? Kind of a mute point to go through the hassle of downgrading your car if you can capture the benefits of it.

@Kameron Patterson a FHA loan will cost you $575/mo for every $100k you finance. A conventional loan will cost you $500/mo for every $100k you finance.

You still need a car, so would trading it in and getting a cheaper one lower your payment? If so, by how much? Example, lowering it $100/mo with increase your FHA approval by $17k or your conventional approval by $20k