Is it a Dumb Idea to Buy a Second Vehicle Before a House?

I’m 25M and own a paid-off 1997 Toyota Corolla with 120k miles that still runs well. I’m living at home and saving to buy a house within the next 1-2 years. I have $55k saved in a HYSA for a down payment, with homes in my area priced around $200-250k. I make $70k/year in a low-cost-of-living area.

I’ve been considering buying a truck, specifically a ~2020 F150 (~$25k), for hobbies like kayaking, snowboarding, and dirt biking. I currently rely on others for transportation for these activities and want more independence. I’d keep the Corolla for commuting but use the truck for hobbies and house-related tasks once I buy a home.

I could pay cash or finance with $5k down, resulting in ~$400/month payments. My main concern is whether buying the truck now will significantly impact my ability to achieve my homeownership goal. Would this be a financially unwise decision? I appreciate your insights.

Buy a cheaper truck. You won’t be using it enough to justify spending $25k.

Reese said:
Buy a cheaper truck. You won’t be using it enough to justify spending $25k.

Agreed. A house is more important at your age. Look for an older, basic truck to handle weekend activities.

Get an old 4WD for under $10k and keep your debt low.

Roan said:
Get an old 4WD for under $10k and keep your debt low.

This is solid advice. Avoid shiny new trucks that come with unnecessary debt. Focus on long-term goals like your house.

Instead of a truck, consider a roof rack or a small trailer for your Corolla. You’ll save a ton and still meet your needs.

Ford Maverick exists, and it might suit your needs without the bulk or cost of a full-size truck. That said, you might want to prioritize buying a house first.

Don’t buy a truck; get a trailer. Your Corolla has a 1500 lb towing capacity, and a trailer will be more practical than a truck bed for most tasks.

I ran your numbers, and financing the truck would reduce your home affordability from ~$260k to ~$204k. Hold off on the truck until after you buy the house.

A house is a better investment. Between a 20% down payment, closing costs, and furnishing, you’ll need at least $75k saved to make homeownership comfortable. Hold off on the truck until after the house.

Consider getting a light trailer for your Corolla instead of a truck. It’ll save you money and still meet your needs.

If you must buy a truck, get a cheaper one. Have a solid plan to replenish your savings for the house.

Owning two vehicles rarely makes financial sense. Stick with one vehicle for now, especially if buying a house is your goal.

If you buy a truck, you’ll probably end up using it as your daily driver, and your Corolla will sit unused. Consider whether that’s what you really want.

Spending $25k on a truck is $25k less for your house. While you’re financially stable, prioritize your house. The truck can wait.

House prices tend to appreciate, and locking in a mortgage earlier is a better long-term move. Buy the house first, then the truck later.

Have you considered adding a small trailer hitch to your Corolla? It might solve your problem without the cost of a truck.

Focus on your house first. Trucks are great, but they can wait. Once you’re settled, revisit the idea with a clearer financial picture.