Need advice paying cash for new truck

I kinda care.... only to know if he will adopt a 9 year old and a 46 year special needs child...(special needs are truck parts)

 

Also they make a HELL of a lot of money on USED vehicles!

 

Except they might think you are a drug dealer or whatever-- otherwise -- I love the idea!

 

Actually -- I think its great -he can do it. -- most can't till they are are old farts like me. My congrats to the OP.

 

Agreed completely!! Fantastic position to be in. Hoping to be there one day

 

A lot of bogus info in this post!

 

I have paid cash for my last 4 vehicles all with a personal check, no dealer hesitated for a second. If they had hesitated I was prepared to walk even if they thought the deal was “closed”. You need to be in charge of closing the deal, not the dealer.

 

I like my dealer more and more....my processing fee was only 80 bucks. I thought that was pretty reasonable.

 

I payed cash for my last two trucks don't tell them ur paying cash and agree on the truck price first and don't let them give you a price and then add on Tax and title settle on the out the door price then when ur in the finance office let them know u have a trade in and ur paying cash as for the trade in you will not have to pay Tax on that portion so my last toyota was a 2014 FJ UTTE they gave me 33k and my truck was 34k (and some change) so I had to pay tax on the difference witch was like 1800 so thats was work for me good luck and don't be scared to walk out theres thousands of Tacoma's

 

Not true. In 06 I paid cash for my Tacoma. Dealer took a personal check and I drove the Tacoma home. In 2016 I paid cash for by Frontier. Dealer took a personal check and I drove Pro 4x home. I doubt many people would bring "cash" into a dealership to purchase a vehicle.

It is a personal decision if a person wants to pay cash or finance a depreciating vehicle. Some prefer to live not being in debt.

 

++ on writing a personal check for both my Tacoma way back in '01 and my RX350 in '16. The guy who claimed you need a cashier's check was wrong.

 

It's a damn good feeling to be debt-free.

 

We paid cash through Costco 2016 Off Road. Ordered on line went picked it up same day.

 

You would be better taking a 0% finance deal for three years, then paying cash fully. I bought my first new vehicle cash then wrecked it after about 10 months, the depreciation when I decided to trade the vehicle after it was fixed was something that I could never get back.

 

If they offer a 0% apr deal I’d take tha even with the cash. Make payments for a bit and then close it out. Hell, USAA gave us 0.9% one time, that was pretty nice.

 

Well I tried to read to the last page of this thread but said screw it at page 6. Same shit … everyone has an opinion. There is no right way to do this but I will say this...if you pay cash and thus not having a monthly payment then make sure you are saving up money instead of spending the extra dough you would be making payments on.

A lot of people do not know this but banks love customers money they deposit in their accounts from various sources like pay checks, deposits etc. Why? They take that money from the all customers and pay customers like 1% (often less!) to keep money in their deposit/savings account and turn around and loan to other customers for home loans, vehicle loans, boat loans, real estate loans etc. And profit from the difference. The profit from 10,000 is small but when you are talking about profiting from 1,000,000 (and likely more) a month they are making a tidy profit. Banks are champs from making money work for them and that is what everyone should learn to do...Make Money work for you.

This is exactly why I like to figure how to use a $33K cash on something to make money. If you pay down your mortgage you are effectively paying yourself 4% of whatever your mortgage rate is. The person who said time value of money is point on. $6,000 12 months from now ($500 x 12 months) is NOT valued as $6000 now. This is because of the compounding interest...let alone $33k.

We all should be looking into "How can we make money work for us". I keep reading investment people say they think interest rates on loans are cheap. This is why people who invest lie to borrow because they know the difference from the rate they borrow to the rate they earn is vast and they can make money. There is a reason why business people are making money and working very little for their investments.

Yet I understand there is a time to pay cash. For example...you are old and not interested in accumulating wealth and maybe have 5 or 10 years to live and do not want to worry about shitty payments. But for most people learn from the business people how to make money. For example you can put $6500 in an IRA Roth (and do that over 10 years) and when you retire you withdraw that amount of money without paying taxes so you effectively have a tax free salary.

To the OP - I hope you enjoy your new Tacoma and you deserve it. I aim to make my money last and hell yeah I can buy 2 Tacomas a year with how my 401k money is earning me per year.

 

Just finance and pay off immediately. Not a big deal.

 

Paid mine cash. Told sales guy that I’m financing then when the car finally arrived to be picked up on 30dec2017 I showed up with cash. Hehehe! Got a very good deal.

 

Why did you post a picture of your title?

 

For a less impressive real world example of using financing...

I bought a new 2017 a few months ago for 1.9% on 72 months. Mostly because I haven't had a car payment since 2008 so the mere concept of it is disgusting, but I've been planning on a new truck for a while. I pulled the trigger a year before I originally planned. Have the cash in the bank to buy it outright and more than enough free cash flow to do payments, but wanted a lower payment to help with the initial shock of money leaving my account monthly. My game is to see how much cash I can acquire each month and this is hurting my winning. Planning on this being a 10 year truck and undoubtedly will be paying extra toward principal.

Anyway, cash in an online savings account is 1.45%. Technically not the same amount of cash in the account as the truck, but close. Due to compounding, this account will get about $2,500 in interest in 72 months. The sales contract for the truck states I will pay $1,962.47 in interest if I make all scheduled payments. About $500 savings over 6 years to finance with keeping the cash accessible and liquid for emergencies. Reason this works even though loan is 1.9% and bank is 1.45% is due to how interest is calculated. Compounding at bank and simple interest on loan.

Its more or less a wash, but keeps liquid cash around.