What is your monthly payment? Please read.

Tons of good advice on here and Ill just say: want vs. need. You can have some of the former, but always bias it to the latter. Most (Americans, according to the news) are literally emergency spending away from financial disaster. Buy the car you need, tick off some of the want boxes, and enjoy it... You can always buy a better/more expensive/nicer vehicle later.

 

Those 5-6-700$ payments sound outrageous. Granted it is a new truck. Some sport packages and credit concerns. 700$ a month is a new 3500 diesel. But still depending on finaced and credit and down payment. I'm 27 and soon to invest into a tacoma. My pic is what I want it to look like. Not what I own currently. What's a possible cash offer to a dealer on a 2017 TRD OR auto when the factory installed 10k worth of options and it's sitting at 40k$. I don't want to spend 40k on a truck unless I buy it to work with (business expense/ tax writeoff)

 

Cash is the least attractive way to buy a car from a dealer perspective.

If the truck is $40k and you want to pay cash, then bring $40k worth. Or you can negotiate the price and then say you're paying cash, otherwise you're fucked on negotiating.

 

$343 for 7 years is fucking crazy. It's a car. A 5 year loan should be a maximum length of contract.

If you aren't paying that off in 5 or less then you bought more car than you can pay for.

 

Im way late to the party but in response to OP, when I was making high teens the most car I was willing to afford was a 10k car...and that was without having to pay cost of living as I was still in school.

This truck in any config is way too much vehicle for OP, IMO.

 

Empty nester here. 2016 Tacoma Sport $20000 down and 1.74% int = $268/mo. 36 mos. When I was your age, I bought all my vehicles with cash. Went through 6 cars in 20 years. I totaled a couple of em. Then my last truck (bought new) lasted 20 years. A new Tacoma is great to show off in. But if you don't need to, get a used one you can better afford.

 

Review your debt ratio and your income. Check your credit and adjust to your new status. Then reach for what you want and need

With good credit and middle 100' for both incomes me and my husband we have to give 1000 down and 450 montly to finance 19,600 for a 2017 Tacoma (4cilinder).

 

$650/month on a 48 month loan is a bit different than the same amount on a 72 or 84 month loan. You can't just talk payment without the other.

There's a whole sticky thread on costs/options/invoice and folks talking about the sorts of deals they're getting.

Last I knew, dealers would rather originate financing. They get more money that way even if the rate's not marked up. A customer paying cash is the less attractive option for them, so don't expect any benefit like you might from where cash avoids a merchant fee.

Agreed, though my personal limit is four years. No more. I'll strive to pay it off early too.

More importantly, once the loan is paid off I keep making "payment", but into a maintenance/downpayment savings account.

 

BUT not from MY perspective -- it is PAID for when I walk out of the dealer!!-- THEY (dealer, manufacturer or anyone else) get NO money from ME for interest-PERIOD

 

This thread is almost like, "is it worth living paycheck to paycheck to luck cool in a new Taco"

Answer is no. lol

 

Understandable from an emotional standpoint.

Just realize that sometimes it's worth the cost of interest to keep other money invested elsewhere at a higher return.

 

dont get a new truck. its never worth it. buy used and avoid payments if possible...got my 2010 with 70k for a bargain compared to buying new, and my insurance is very reasonable

 

I sleep real good at night - knowing I owe no one nothing- except the credit cards we pay off every month ( aka - a free loan every month --with perks)
nite-nite! it's 1230am here and --shucks-- the Chiefs lost tonight -- at least the Packers won!!

 

I agree with you 100% DCSBFTMFW, this is outrageous to even consider.

However, to play devils advocate here, he basically put down only two grand on the truck as 343 * 84 runs him up to 28k over the life of the loan; (since he financed 25k). This isn't "awful", but it's a pretty big chunk of money wasted right off the top.

Essentially the dealer made 5k off of him from the get go and whomever financed him will make another 3k off of him on the life of the loan. So really he covered his depreciation, but will lose it over the 84 months. (This is where I agree, this is a terrible idea!).

So unless someone who takes an 84 month loan and doesn't pay more towards it monthly, will have a junk truck and 18k still owed on it.

 

Lots of good advice in this thread. I'll just add, don't be one of those guys with a $700 a month payment who's putting bumpers, suspension, etc. on a credit card...

Seen plenty of young guys come to TW meets in newer trucks with some mods and not enough dough to buy a cheeseburger for lunch. A snapped CV axle or a bent tie rod would have had them in shit creek financially and without a ride to work on Monday. Most of those guys also paid for install / fab work, and would be paying shop labor that they can't afford for even simple repairs due to lack of tools and know how.

 

I always haggle a deal on a five year loan that will be best for the dealership so I can get maximum price cuts, make sure to finance at least 5k ish, and then pay that loan off within 10-12 months. This way I build up my payment history and credit score as well.

The down payment is always whatever the maximum amount I can talk the dealership into allowing me to put on my credit card (which gets paid off immediately) instead of cash so I can get thousands of extra flight points for my next free flight around the world

I also make "car payments" to myself over the years if I know a car purchase may be coming up so there's no interest and I can afford to do the above.

Buy reliable and maintain it and they'll last you long enough to save for the next one.

 

How did you get an interest rate that low?
Toyota finance only offered the standard interest rate of 3.9% for tier 1+ customers in my region. Did finance through a credit union you have a good relationship with?

 

i didn't even know there were 84 month car loans. I thought the longest you can finance a car is 72 months. He probably financed the truck that long for flexibility. I am sure he is making extra principal payments of a $100-200 extra on top of the regular payment to pay it off earlier and save some interest. He just wanted the lower monthly payment for those months when he is shopping for the holidays or going on vacation and needs some wiggle room in his budget.

 

Nobody said you should be living paycheck to paycheck or eating rice and beans for a truck. I am definitely not encouraging that.

 

492 a month, 2.9%