What option would you choose???

5 yrs, pay to have truck run on dino. before paying any $. might be rebuilt crash unit.

 

$25,000 for both 2012 truck and trailer? Not looking good there, methinks. Tread carefully.

 

Oh, OK. Still recommend a dyno and a full alignment check on both truck and trailer. And a mechanical go over on both to winkle out possible problems before money changes hands.

 

Go with the shortest term and lowest interest rate you can afford. If you pay it off in five years you will have more equity in the equipment. Is there any warranty on the truck and trailer?

 

Look at the total cost of both loans.

Option 1: $102,000 loan, 5 years, 3.75% interest
Total cost of loan assuming payments made exactly on time every single month for the entire course of the loan (no early or late payments, no extra payments) equates to loan payments totaling $112,020 plus the $25,500 put down at the beginning for a total cost of purchase of $137,520.

Option 2: $127,500 loan, 7 years, 5.25% interest
Total cost of loan with the same assumptions above: $152,635.56

That's a difference of $15,115.56. Which is more important to you? Having the money stashed in a rainy day account now or saving $15K on the purchase in the long run. Everybody's situation is different, so that's something that only you can decide.

 

or, you could just do option 2. save the cash. but make bigger then required payments so at the end. you ended up with option 1.

option 2 is $50 payment less then option 1. so, your not losing or gaining anything as far as the monthly payment goes. if there's no penalty for early payoff. i'd go with option 2. and throw in an extra few hundred dollars. pay it off earlier so your not paying that extra 15,000 in interest.

 

That is what i would do...