I run a media company as the sole employee, pulling in $130k to $150k a year, and I’m starting a new job next summer with GC making $78k, plus an extra $900 monthly truck allowance. I’ve never been a truck person, but this job requires one, so if I’m getting a truck, I want it to be the Raptor I’ve always dreamed of.
Here’s where I’m at financially: I have a fully funded emergency fund, a down payment saved for a house (waiting for my lease to end before buying), no debt, and I contribute monthly to my stock portfolio. My plan is to buy the house first, save up, and put $40k down on the Raptor. I’ll keep my current paid-off car and plan to drive the Raptor until the wheels fall off.
I’m confident I can afford the payments, but I’d love some advice. Am I missing anything or getting in over my head? Any feedback would be appreciated!
This might not be the best place to ask, but honestly, if you’re just starting your career, why not go with a cheaper truck? You could pocket the $900 and wait a few years to get a Raptor when you’re more settled. Trust me, we all say we’ll keep our first car forever, but that almost never happens.
@Dallas
I see what you’re saying, but for me, saving the $900 doesn’t move the needle much. I’ve never wanted a truck before, and the Raptor is the only one that appeals to me, so getting a truck I don’t really want feels like a waste. I’ve got Raptor fever!
@Darwin
That $10k a year could do a lot in a compounding account. Plug it into a calculator and see for yourself.
Spending $10k a year on a depreciating asset, plus insurance and fuel costs, when you’re still building your foundation is a fast way to fall behind. Everyone says they’ll keep it forever, but most don’t even make it past the payoff date.
Go for a used Tacoma or something practical. Save and invest the rest. Trust me, future you will thank you.
As someone in real estate lending, do NOT buy the truck until after you’ve purchased your house. Even with your income, a truck payment can significantly hurt your buying power. Raptors will still be around, and you’ll thank yourself for getting the nicer house first.
@Skylar
That’s already my plan. I’ve been holding off on a new vehicle specifically because I know the car payment would mess with my debt-to-income ratio.
How stable is your media company income? Can you balance it with your new job? A $78k salary doesn’t leave a lot of room for Raptor expenses like gas, tires, and insurance, even with the truck allowance. Congrats on the new job, though—it’s always exciting!
@Alton
Thanks! The media company has been steady since 2017, and I’ve cleared $100k+ the past three years while also being in school. I’m confident I can handle the workload and even grow it further. The job covers gas separately from the allowance, so at least that’s not a concern. How long do Raptor tires typically last?
@Darwin
If you’re serious about keeping it for a long time, why not make it a company truck? Pocket the allowance, and the truck becomes an asset for your business. Just be aware of the tax implications if you sell it before it’s fully depreciated.
Why not look into certified used Raptors? Buying new is cool, but you lose thousands in value the moment you drive it off the lot. The Raptor is an awesome truck, but insurance and gas will hit your wallet hard. Just something to consider.