Did you do extra payments. Who finally owns their Tacoma?

I am planning to buy a '21 or '22 Shelby GT500 (basically as soon as I can get one for MSRP, no markup). I'll be in that club.

 

This was Tacomas and Highlanders lol, ya my Dad has one close to that with his new fully loaded 2018 Raptor.

 

No I personally find it foolish to pay extra on a loan at 1.9% on a depreciating asset when I can pay extra on the mortgage or invest in a good market

 

Because parents experienced the 2008 recession and were forced to make prudent financial decisions, let’s not make it into more than it is. People didn’t magically get smarter with their money, they were forced to

 

I paid cash for my brand new 2018 TRD Offroad in February last year.

 

Pay cash. If you can't, you don't need it....

 

Lets calm down.

Average student loan debt is $34K. It is nowhere near $100K+. There are people who do go into epic debt to pay for school, but they are the few not the many.

And it's millennials, not millenniums.

Our country has had a debt problem for decades, millennials are no different. A lot of boomers are carrying debt like mortgages well into retirement which is a problem. If anything I see a lot of millennials like myself who hate debt (I own my Tacoma in full as well as the other car in my garage). I graduated with a Bachelors and two Master's debt free. I know many in similar boats (A friend of mine has a paid for house at 25).
If anything I think it may be because they see some of their parents struggling financially and don't want to make the same mistakes. But everyone still collectively makes very poor debt choices these days.

--------------------------------------------
Advice to other millennials:
The best thing anyone can do is stay the hell away from car payments. Can't pay cash, can't afford it.
Regularly invest in retirement and don't give your money to a bank.

Average car payment in the US right now is $502/mo over 60 mo.
$500/mo in a ROTH IRA invested well from age 25 to age 65 is roughly $5 million.
Pay yourself, not someone else.

 

Car payments are the devil. Happy to not have any, and we’ve got 5 vehicles (9 including dirt bikes/motorcycles)

Spent a lot of years driving shitboxes lol.

 

At the end of my lease (Did a 36 mo lease 430 a month 12k miles...) I’d have to pay 28K to own it (or finance it). I’ve had paid 15K at the end of the lease so ... I may not keep it unfortunately. Unless I come across lots of money by then and dishing 28K won’t hurt... if anyone reads this and wants to give me their opinion feel free. Not a snowflake here.

 

Paid mine off this year. Bought it with the 1.9% financing from Toyota last fall and then couldn’t stand having a payment so I just paid the rest off this spring. It’s silly to have the money and not just pay it off and be done with it. Everybody will say “but you can make so much more than 1.9% investing that money!” I really don’t care. The truck is MINE!!

More people should start listening to Dave Ramsey. He will change your look on things, especially borrowing money.

 

Leasing is the most expensive way to operate a vehicle.

Divide $28K by however many months you have left on your lease. If you cannot put that much money away a month to purchase the vehicle at the end of the lease, it's too expensive.
I'd look into paying for something cash at the end of the lease and just save between now and then what ever you can to do that.

You also can always sell the vehicle and pay the lease off early to get out of it as well, if getting out of the lease is something that appeals to you. This can be a good option if the truck still has value above the residual lease plus the buyout price.

Plus I'm the type of person, if I really like the vehicle and it serves a good purpose to me, I'm not opposed to getting part time gigs to help save up the cash to buy it out. $28K in side hustle money if you have about 2 years left on the lease is totally doable. You don't need to "come across lots of money" just go out and make it!

 

I'm not going to borrow on my car to invest in the stock market...

 

In my experience some of the smartest people in the world either don't understand this or don't care. That is the core problem with personal finance.

 

Thank you! Right now we are saving a tad more than what it would take to save to own in 22 months. So yeah we could dish it out but man that’s a nice chunk of change to dish out lol. Lots to think about here. As a side gig I’m working on learning a few things around my house that I want to remodel to hopefully soon offer the services to others... potentially making it a business.

 

It is a lot of moola!

Thats what paying cash has taught me. If it hurts too much to write the check and you’ve got a little guy in the back of your brain telling you there are more responsible things you should do with that money... well you are over buying in car.
When you finance and only look at payments you tend to forget the big number.

Good luck learning a handyman trade! Its a good way to make extra cash.

 

This will NEVER happen! They’ll stop building them before that happens! Promise!

 

What kind of return are you getting that's getting you to $5 million?

 

Dave Ramsey is kind of an idiot, some of the stuff he says is common sense, but have you ever tried to rent a car or buy an airline ticket without a credit card? How about a hotel room?

 

Yes. 2018 TRD OR. Put down $18,000, monthly payment is around $360, paying $500.00. I was planning this spring to pay it off but had to get new roof on the house instead. I might just pull the trigger this fall pay the rest off, we'll see.

 

You can have credit cards just don’t carry a balance. I prefer using Amex for certain benefits and protections such as car rental insurance travel lounges, etc.

I don’t even wait for the statements. I pay off any charges as soon as they show up. But I have always had an aversion to spending.

Dave Ramsey recommends you use cash when possible because the act of counting out and handing over your cash money has a chemical pain response.
Credit card charges can pile up if you are disassociated with the pain of spending.

For people with spending problems “how did we spend that much” questions occur when the statement comes in.
That’s when the cash out of a spending budget is necessary to correct a bad behavior.