Anyone who bought their truck with cash?

That is my philosophy. It can make things rough for a few years, but it has made for a comfortable life and retirement. And no, I do not rent and I had no trust fund. My net worth was approximately zero when I got out of school.

 

zero is already better then most when they come out of school...no assets and huge student loans

 

Did you have a mortgage? Ever use an account at a store to buy lumber or other things? Then you had credit. Someone who tells me they never buy anything unless it's cash is just blowing moral smoke. Everyone has used credit at some point in their lives and it's nothing to feel negative about.

The trick, and this goes to the OP, is not to use credit frivolously or to over extend yourself. If you use credit wisely, especially with locked in low interest rates, then you can actually save money in the long run while owning your own home, car, etc decades ahead of what it would take for you to save that money and rent a place to live. That's why financial management is such a hot term.

 

I'd agree with that. First vehicle I paid for was a 2004 Outback H6 when I was 19. Got it for $7300 and was going to pay cash (was a private sale) but I was talked into doing a small $4k loan on it. I think that helped my credit score get to where it is today.

It definitely helps, and with more than just interest rates. When I bought my truck, the guy told me they normally require a cashier's check for anything over $2k down, but with my credit score he had no fear of accepting a personal check for any amount from me.

I have a lot of friends with $100k in debt from student loans. I refuse (much to the disappointment of many people) to go the year and a half or so I need to get my bachelor's until I can write checks for it like I did for my associates. Granted, they make a little more than I do, but it's not a big difference and once you factor in paying those loans back I am in better shape financially. Long term, they will be better off, but for a guy like me who doesn't want kids and is happy with a relatively simple lifestyle I have more than I need.

 

I bought my '05 Taco 4x2 SR5 access cab MT (not a prerunner) for $17k cash out the door. I know that was a while ago but prices haven't changed that much. For some reason dealers don't really give cash discounts anymore. They seem to prefer you to finance it even if you pay it off after the first payment - seems strange. I bought a used '08 4x4 V6 access cab AT in January of this year and my interest rate was only 3.75% for a 60 month Fixed, which is super low IMO.

 

Money is cheap right now. I will always finance when possible at record low rates. I could have paid cash for mine but now that cash is free if needed for other opportunities.

 

that.

 

I am the first to admit that I have been blessed in my life and career. I did finance my very first new vehicle, 1972 Dodge van, B-200. Since then, I have never purchased a used car, traded in a car or financed a car. I always sell my "used" car outright to a private party. I borrow the balance of the cost of the new vehicle from myself, from personal savings, then I pay myself back at an interest rate 5 points over whatever my bank would have loaned me the money for, for 36 months (or less if I prepay). It takes a lot of discipline to borrow from and repay yourself, but, overtime you'll benefit from the interest payments paid to yourself. Paid $31,750 plus tax and license for my 2015 Sport, 4.0L, 4X4. ACLB, all options. Over the past 40 years I have owned 25 new cars, SUV's, and pickups. Currently also own '09 Corolla S, '11 Camry SE, '05 Newmar class A motor coach.

 

This^ people that pay cash for everything might feel liberated but their FICO score might not be so great if and when you ever need credit or even a low interest rate for large purchases (Ie. house, car) You might pay for cash for your truck but if you don't have a credit history (and lots of it) you could get a higher interest rate when getting a mortgage and even a .25%-.50% could result in $25,000-$50,000+ more in interest paid on your home (depending on how much house you buy). I finance everything just to get a great FICO score even if I can pay it off and I pride myself on being 29 and having a FICO score above 850. Having good credit is a must these days as it comes into play in a lot of aspects of life. I met a lady in Best buy who has several houses paid off, all cars paid off, no debt and they wouldn't even finance her for a TV because she didn't have any credit history.

 

I would say use the money on NEEDS not WANTS.

 

If you can pay CASH for everything - you don't need a FICO score!!!

 

Disagree. If someone has 500k in assets and has zero credit it shows him/her to be a far less risk. If it doesn't, the system is broken.

 

And agreed.

 

You bought your house with cash ?

 

I would then say you must have a trust fund, because at 25-35 99% of people making money below a 6 figure income would not make enough to cover rent and save up enough for a house right out of college. That's not a new thing either, it's been that way for a long time. Some of you guys are so full of it that it's funny.

Nearly everyone has had a mortgage at some point, and therefore credit.

 

I agree with you, but FICOs stop at 850.

I'm 23 and am getting close to crossing 800. One of my credit cards gives me my score every few months and it keeps slowly climbing. Hopefully the added history, a few more inquiries that will fall off soon, and the higher credit limits they keep giving me will play into my favor there.

 

Just bought my 08 Access Cab TRD Sport with 46k miles for $23,100 cash. Was not from Toyota dealer though. He had it listed for 24k.

 

No trust fund, own home, no mortgage (yep, had one), good education, comfortably retired at 57 (now 65), the old fashioned way, no family inheritance, no company pension, and no disability checks. Was paid well during my working career, invested well, and didn't live beyond my means.

 

I can tell you first hand, the system is broken! Not kidding...

 

So then you broke your own rule right there. You used credit.

Keep in mind for people like me, I'm 28, it's not realistic to have a home and a car with zero mortgage/credit. Schooling was also less expensive and good careers with high rates of pay were more common back when you started off. Also at your age you've had years to clear up your debts from your early 20's. I hope to be in your situation with no large debts by the time I'm 45. Till then I'll use credit when I need too.

I doubt a tenth of my generation will be able to retire by the age of 65. Your generation left us to much of a shit hole to climb out of.