I currently have a media company (sole employee) that does about $130k to $150k a year and will be starting a new position with GC next summer making 78k with an additional $900 for my truck allowance. I never wanted a truck but for the sake of the job I pretty much have to get one. I currently have a paid off car that I want to keep but I feel like if I’m going to get a truck and add a car payment I’m going to get exactly what I want…which is a ford raptor.
My emergency fund is maxed it, I have a down payment for a house saved already (waiting for my current lease to end) and I contribute monthly to my stock portfolio. And I have zero debt. I plan to buy the house first and then save for awhile to put down 40k as a down payment for the raptor.
I’m creating I can afford the payment and have no worries there. But I also want some feedback on if I’m in over my head. Also, I do plan to keep the truck until the wheels fall off so I’m not looking at this as truck I plan to trade it.
Any advice or feedback that I might be overlooking with this purchase?
This might not be the best place to ask this, but it sounds like you’re just starting your career. Why not save the $900 (which will be even less after taxes) and go for something more affordable to start with, especially if it’s for work? Ford will keep making Raptors, so you’ll have plenty of time to get one when you’re ready in a few years. I remember telling myself I’d keep my first car forever—turns out that was far from true!
I’ve thought about that, but saving the $900 wouldn’t really make a big impact on my savings… I know it probably sounds crazy. I do plan on getting more cars in the future, but I’ve never really wanted a truck—except for the Raptor. So, to me, getting a truck I don’t actually want would feel like a waste. I’ve got Raptor fever!
As a real estate lender, my advice is to hold off on buying the truck until after you’ve purchased your house. Even with your income, a truck payment can really impact your buying power. Raptors will only improve over time, and investing in a nicer house now will help you build more wealth in the long run.
How stable is your media company income? Will you be able to maintain that level of work with the new job? If it were me, I’d save the $900 or go for a cheaper truck. Having a Raptor on a $78k salary might not be the best move. Consider the gas, mileage, insurance, and the cost of tires that come with owning a truck like that.
Congrats on the new job, though—exciting times ahead!
Started the company in 2017, and for the past 3 years I’ve been made over the 100k mark. This has been going one while I’ve been in school. I’m getting an engineering degree so to me personally I’ll be able to continue the level I’m at now and more than likely be able to increase it. Through my internships I was able to also do both without a hit to income.
Gas has been something I’ve looked at since I have a Camry now. But luckily the job also pays for gas as well and doesn’t come out of that initial allowance. The cost of tires isn’t something I considered, how long do they typically last with a mixture of road and dirt use?
For $900, you could get a solid used Gen 3 or a low-mileage Gen 2 in excellent condition. That way, you’re not paying anything extra out of pocket.
You have to remember, a car allowance isn’t “free money”—you still lose value due to depreciation when you buy new. Buying used means taking less of a depreciation hit. That hit will affect your equity in the vehicle, whether you sell or trade it later on.
Even if you plan to “keep it forever,” buying new still means taking a depreciation hit.