Some financial advice for a graduating college student who has saved up for a new Tacoma :D

Hello TW!

I am seeking some financial advice as a young lad looking to get into the Tacoma scene.

I have saved up a good chunk since I started school and will be graduating in May.

I have a job lined up after school, and am wondering what the best financial move is for me as a 22 year old guy living in Virginia.

I have been looking at Tacoma’s since I was a freshman and have some good ideas of good prices. But I’m wondering what all the graybeards on this forum have to say about buying a new truck right out of college.

The configuration I want is:

TRD Sport Double Cab Short Bed 4x4

I have found decent deals on the 2 gens lately, (2012+ 25-45k miles for $24-27k)

And have also found decent deals on new 2017 Tacoma’s with 25k miles or so going for right around $29k.

I am wondering if my best option is to go used or go new.

I’d like to keep my budget at around 18k cash down and finance the remaining of the truck.

What do you guys think?

 

18k would be a nice down payment on a house, buy a 1st gen save some $

 

I’m always an advocate for saving the most money possible, so my suggestion is cheaper is better. Especially if you aren’t actually employed yet. Never know what could happen. I’d even suggest waiting until employed before making a purchase. If it were me and I wanted a newer truck, I’d go with a 2nd gen. The 3rd gens seem nice too, but to my knowledge there have been a number of unhappy owners.

Also, just because you have the money for something doesn’t mean you can afford it. You’ll need to make a final decision on your own based on your current situation. At any rate, welcome to the forum and good luck on your search/purchase. A Tacoma of any gen is a good choice.

 

I agree on house down payment.

But if buying go for a 2nd gen. Cheaper lower payment. Then get in that house.

 

how much are 1st gens in your area ? buy one invest the rest for when you want to buy a house. No car payment is HUGE ! and having a nest egg for the purchase of a house is KEY !

 

1st gens with around 150k miles run about $7500.

100k or less is normally about $11-13k

 

https://forum.mrmoneymustache.com/

A finical blog & forum ..... that i follow give it a chance ...... its about making the most out of what you have.

When you in your late 20's you will be glad you put money away for down payment

 

Have you done an extended test drive of the truck you are interested in? I have a 4x4 sport DCLB and I love it now, but the transmission and gearing combo for the Automatics isnt the best out of the factory and many have complained about constant gear hunting and what not. Get a manual if you can to avoid many of those issues... manuals also get 4.30 gearing whereas the AT gets 3.9 (too tall).

Buying a house at 22 is probably a wise investment, but when I was that age, I didnt want to be tied to down to anything let alone a mortgage.

Id buy the truck and save buying a house for later... just my opinion here.

 

My advice is don’t buy unless you can pay cash for a car. Paying interest on something that depreciates over time is a double kick in the nuts. You’re very close to being able to pay cash for a vehicle, and getting a full time job, you should end up saving faster if you’re good.

 

1st gen no car payment and $10000 invested properly for your future wants and needs

is never to early to start to think about retirement

 

I appreciate this input. This is about where I am at, I really don’t want to buy a house at this age, but have been considering a nice chunk of land.

 

Say I can pay cash for the car, but I wanted to keep that remaining money in my bank account, would you say I could afford it?

 

I read something one time that said

“Save all your money so when you’re old you can buy all the things that only young people can enjoy”

 

^ this. Doesn't have to be a 1st gen but buying used is almost always a better option than new. Be patient scour the ads widen the search and the right one will pop up that has low miles and been babied.

Put the rest of that money into savings/retirement/house fund. The earlier you start the better off you'll be.

Make a budget and stick to it. Allow for plenty of savings but give yourself some fun money (mod money) too. You'll have to decide on the balance of fun vs. Savings but it's like diets...if it' no fun you won't stick with it so make it something you can do for the long haul.

 

You have 18K to put down, does that leave you any cash for emergencies etc.? I don't know what your degree is in or what your job prospects look like but starting out in life is always expensive and you will want/need some money to fall back on at some point.

 

Indeed, I have the money for a new one, I just don’t want to spend everything I have which is why I limited myself to 18k

 

I graduated college in '14.

Don't come out the gate swinging. Save your money as much as you can. I made the mistake with my first job coming right out of school and did nothing but spend money and didn't have a savings. That bit me in the ass pretty good when I got laid off.

Seems like you have a good savings now, I would get something that you can pay off or have very low payments per month. If something were to happen financially you need to have money to fall back on for a month, two months or 6 months.

Just because you can doesn't mean you should. I struggle to follow that when it comes to money and hobbies every paycheck. Just my .02

 

Welcome to TW! Where in VA?

 

Too many unknown variables to recommend a path for you but I personally did something similar to what you are considering. I bought a new '17 OR one year out of college. Have had it for about a year and a half now. It'll be paid off in June and I have a down-payment for a house in the works although I am not and won't be in the market for a house in the near term. It's been most excellent for me and I'd do it again tomorrow. Only cost me like $400 in interest to have it 2 years early and it raised my credit score a bit.

 

Fully fund a Roth based in a low cost program like Vanguard. Every year.

Don't take on any debt other than a mortgage. That way you never worry about how to get out of debt. (this may answer your truck question)

Take a Dave Ramsey Financial Peace class, or one of Susie Orman's programs. While very different personal lives, their financial views are similar and solid.

But what's important is to apply what you learn.