What would Honda have to do to Snag Tacoma Buyers

No skin in the deal is better for the buyer at 0%.

To be honest or whole system is a mess and the housing bubble was basically a result from the dot com bubble before it... even the stock market crash in the 30's was caused by excessive debt and the people who were hurt the worst were those "with skin" in their deals since they lost that equity too.

 

Few well run businesses cap expense long lived assets for a good reason. It doesn't accurately reflect the cost/value of a given expense over its realistic expected life. I have ZERO problem using debt, especially at low interest, to amortize the cost of a vehicle over its life with me...

I think in general the buyer having skin in the game is good especially if you're the bank. That said, I financed a Camry I recently picked up financing the entire cost & tax at 0%. It's a new 2015 so I also got a factory rebate.

 

I'm 24 and own my Tacoma and my G8 that I've got over $40k in (cash). Of course, I do work for a living and don't expect hand outs.

 

You mean like keeping a job?

 

I too had skin in this Tacoma but I didn't put any in my wifes F150. There was no good reason too at the low interest rate. The warranty covers beyond the financing and that F150 will be our family vehicle for a long time.

If you go bottom up the only person that wins with skin in the game is the bank on a vehicle loan. It's a rapidly depreciating asset that will likely no have any equity in it over what you owe the bank after they take their hurt feeling fees. At least on a mortgage the asset USUALLY appreciates... which can mean you'll get back some of your money even if things go tits up.

 

Screw keeping a job. At 20-30 your objective should be moving up. Standing still doesn't do you any good. I just swapped companies because my last job expected me to wait for them to have an opportunity so instead I jumped ship to a better opportunity for myself.

If you are good at what you do and in a good profession within 5 years you should of made enough of a name for yourself not to be just secure in a position, but secure in your field which is far more important. Companies come and go but the jobs stick around (usually).

 

Ya, I'd like some of these experts to show their w2, 1099s, 1040s or whatever they file with and their bank statements.

Pretty much calling the vast majority of buyers idiots tells me something about the poster if he had debt or not.

 

+1. I don't owe anything to any company. I moved up 4 times in 5 years. Went from under $20k to $70k and I'll make even more this year based on the raise I got towards the end of 2015.

 

I didn't say at the same company.

 

Very few successful people in this generation stay at the same company for more than 5 years. This isn't the 1960's where you expect to stay at one company from the day outta school until your retirement party. I think a lot of previous generations don't get that. Even my dad seemed a little sad about me leaving my last company, one he helped grow, for another but he even admitted I was probably even more appetizing to my former company now since I left. All that 3rd party experience and motivation it gains and shows...

 

Ya, I get all that. Imma company jumper myself...

My point is there's a lot of people with or without degrees that have to have reliable transportation to keep a job...any job...to support their family & themselves. Point being if a typical cat has 2.3 kids, a wife, kids, dog, house & all the other BS expenses to live and earns what...average of ~$35k a year he might need to finance a car to keep that "any job". To call a man (or woman) an idiot because he/she has different priorities than you is just kinda fucked up and seems to be a very narrow view. I'm pretty sure the "finance without $ to cover the loan" population is in no shortage on TW or anywhere so his opionin speaks to and about a lot of people and I disagree.

 

Yeah, when I was dating my wife she drove a 15 year old Protege. No payments, but she was paying ~$300 on repairs (when you figured out the bills) to keep it running and it was a heap. I'd rather pay slightly more than double that for a 2015 F150 XTR 4x4 that can protect her and my daughter plus get them to work, appointments, wherever safely.

I'm sure the whole "no payments" crowd is also done their mortgage, or close to it, and has over 100K in savings. 99% of 20-30 year olds aren't there.

 

They would have to make a Real Truck that is better than the Tacoma. Fat chance of that happening.

 

Bingo...

I would add that there may actually be people who just have different priorities & situations than the TW users posting how the world should work according to them.

Financing a vehicle and not having the cash to cover that loan does not equal idiot in my book especially when I'm not walking in their shoes.

 

Student loans are unsecured debt like a private loan but aren't scored as poorly on credit scores as private loans.

Auto loans are secure debt and aren't as bad as student loans on your credit because there is an item behind the loan, even if it depreciates instead of appreciating

 

If you wanted economic stimulus... just forgive 50% of student debt... watch the cars, houses, and big ticket items idiots buy up that they can't afford when half of their 100K in student debt is gone... only to cause a massive recession a year later lol.

 

I didn't catch that the finance and life wizards were directing the comments exclusively towards younger people. In fact, when one poster called people idiots for financing a vehicle without at least having the cash on hand to cover the debt was talking to all or otherwise at least he didn't stipulate a specific age.

 

I'm waaaaaay younger than you (49) and I did the same. I could have paid cash but with interest rates sooo low and looming financial instability I thought I'd keep the cash and roll the payments. If need be; I can always pay the loan off.

 

NO STIMULUS! The government needs to get their big fat fingers out of everything. That's why college is so expensive to begin with, guaranteed student loans and grants and other financial goodies. In other words guaranteed income to the Universities. I'd bet $10-15000 of the cost of a new truck is due to government intervention, through the unelected 4th branch of government, as regulation.

 

I was joking lol. Find your center...

https://www.youtube.com/watch?v=Ta5HnYtWBIs