2nd gen taco thoughts/seeking “financial” advice

(on mobile so if formatting is trash i’m sorry)

I’m in a little bit of a predicament. I have a 16 OR and I love it to death. However, it’s becoming a bit of a financial burden on me as of late. I can afford the payment… it’s just a little tighter than I’d like and i’m pretty upset about it. I’ve had it for about 7 or so months now and I’ve been handling it but with the prices of everything around me going up it’s just getting harder to justify it no matter how much I love it. And I’m really truly hooked on it, it’s probably my favorite vehicle i’ve ever owned.

I’m thinking about trading down to a cheaper 2nd gen just so i can keep my Taco but have a smaller payment. So far the best deal I’ve found is an 07 DCLB Sport with 217k miles for $11K. Seems to be in good physical condition but I have to go look to confirm(3hrs away so unlikely to be soon). I’d prefer to get a 12-15 but I can’t find any for good prices that are double cab and 4wd. I think it’s less that they’re hard to find and more that they exist but everyone has jacked their prices up to the moon lol thanks inflation/corporate greed.

What do you guys think? Should I just hunker down and try to manage my payment a little better until I can refinance? Or trade down and have a much smaller payment? Secondly, are there any major problems with the 05-09 version of the second gen Tacomas that I should be aware of?

(I know there’s probably a lot of important information I left out but I’m just trying to get a general idea of what others think and not seeking genuine to-a-T financial advice. Any thoughts and 2 cents are appreciated.)

 

In this market, trading down probably means you'll most likely be in a higher payment and with a lesser truck, or stuck in longer loan terms and it will cost you more in interest in the long run. Suck it up and wait for the auto market to level out and for prices to come back down when supply hopefully returns.

 

I wouldn’t not trade it in for a second Gen. I would just wait and see if you can re finance to lower your payments. You might end up owing on your 3rd Gen which would then be added to the new purchase which could potentially make payments about the same or more for a +10 year old truck.

 

This probably isn’t the best place to get financial advice. Everyone’s wallet is empty due to mods.

I’d meet with a CFP ( not just with anyone calling themselves a financial advisor) for advice if I were you so they can look at your entire financial situation, since just this decision isn’t in a silo. It’ll affect other parts of your money situation.

 

One thing I did to lower the monthly burden of payments involved insurance payments. Instead of making a monthly payment to the insurance company, who would absolutely rape me with interest. I’d take out a bank loan at a far lower interest rate and make the payments to the bank instead.

If you’re late or miss a payment you won’t get your insurance canceled and get charged to reinstate it. My insurance company would do it as a 9 month loan, the bank 12 month so the monthly payment was even lower.

It’s surprisingly how much this helped with the lower monthly payments, lower grand total for the year. Of course the ideal thing is to pay it all at once and pay no interest. But if you don’t have it we do what we must.

 

Do you have to have a truck?

 

I traded down, but not from a Tacoma. Reasons were financial, but different - want to eventually consolidate to one vehicle. Traded in a 2012 SUV for a 2007 Tacoma. When I retire I sell my older truck, keeping it now as a backup.

I took a hit of course on the trade in, then there's registration, taxes, etc. My town taxes will go down a bit. I got a great deal on the Tacoma I bought, about the same price as the one you're looking at with 146k miles at the time. I don't know what a 2016 Tacoma is like - but I love the 2007. I'm sure the 2016 is great. The SUV had bluetooth, back up camera, etc. With my previous field service job they were nice to have, but now I'm fine without those. If those are significant to you, something to keep in mind.

The consensus seems to be to hang onto it. As pointed out here, interest rates have gone up. I didn't finance either vehicle, so everyone's situation has variables to consider. Either way, now that I've had a Tacoma I wouldn't want to be without one. It's my favorite vehicle ever since my first in 1974.

 

I have been in the car biz for a long time. As a previous poster mentioned, all prices are elevated so you will overpay for anything you buy and you will end up at a higher interest rate. Those things together will probably net you very little savings. If your loan is 7 months old, rates are about 2 percent higher today. Also 217k miles, could mean more repairs.
Not knowing all your situation, I would say try to find the savings somewhere else.

 

I would think that a decent place to start to help make the decision would be to get your truck appraised to see what a place like Carvana would give. If you can't even break even on the trade then you won't accomplish your goal. Ideally if you could get out of the loan by means of paying it off and wash your hands clean of it, then you need to find something else to drive. Used vehicle prices are still stupid at the moment. I have been thinking about getting rid of my Taco, mainly because I just don't like it but after looking at potential used cars to replace it with, there is no way I would pay the prices of a 5-8 year old car with 100K on the odo.

 

I second the financial advisor. Today’s world, financially, is up side down and some professional help will go a long way. As much as I love my truck, a 2009 TRD Off-Road, I wouldn’t let it ruin me financially. Get your finances straightened out so you can thoroughly enjoy whatever it is you want to do. I would also recommend buying Dave Ramsay’s The Total Money Makeover book. It is intense, but the only loan my wife and I have now is the house. When you can save up and pay cash for what you want, it relieves a lot of stress.

 

Are you the kind of person that will keep a vehicle until the wheels fall off, or trade for something newer every few years? If your the former than keep the 3rd Gen and suck up the payments for now if you can, if the latter than doesn't matter either way really.

 

This.

We love our trucks, but aren’t qualified to make quality financial advice for your situation.

 

what was the 2012 SUV you had before?

 

Honda CR-V EX. A good SUV, but changed jobs, now just to and from the office. And with retirement approaching don't want to be paying taxes, insurance, registration etc. on 2 vehicles. So, an older Tacoma with some miles on it was a good choice. I need a pickup truck for getting firewood.

And... the Tacoma is a manual transmission. Don't know what's wrong with me... but I had to get back to a manual!

 

You won’t like this answer. Sell it pay off the loan. You may make some money on it with the current market. Buy your self a beater car. Get your financial house in order. Just because you can make the payment doesn’t mean you can afford it.

 

With how weird things are lately and gas probably not dropping significantly in the near future or possibly ever might be worth just getting a commuter and revisiting the tacoma idea later down the road when more financially stable. Especially if the beds not needed which are pretty damn small on these trucks anyway. You could probably save quite a bit in a year with a little 4cyl honda or something similar

 

Agreed. You'd be amazed what a Honda Fit can fit inside and good 2012-13 models can be had for 12ish all day.

From a finance and accounting perspective (my day job), the liklihood of refinancing to a better rate is dang near zero at the moment (your specific details unknown), and the winds are blowing to an extra 1% being tacked on in August.

As for the payment, if you are deadset on keeping the truck, that needs to be offset somewhere. Maybe its finding a roomate, airbnbing out a room, finding a side income.

If the truck isnt rock solid, a smaller crossover (or better yet a wagon) can be surprisingly capable of load hauling, while being much friendlier on the wallet. Honda Fit, Volvo wagons (245s, V/S70s, etc) are all solid choices.

 

Took too long in this thread for someone to say it. If it is a struggle to make the payment you shouldn't have bought the truck. Sell it and buy something with cash. No payments.

 

Debt is the enemy is my philosophy.

Yeah, there will be lots of folks come along and say there is such a thing as 'good debt' with examples. Certainly can be true in a business environment, not as much in a personal one.

I actually don't care, because in my financial life nothing feels better than debt free. I have many things I can enjoy and be generous to others when I have no payments and no interest sucking my wallet dry.

Dear old Dad espoused that financing a depreciating item makes you a two time loser.

 

3rd gen not worth it to begin with. They took a $20k 2nd gen, put some lipstick and worse engine in it, then slapped a $40k price tag on it

Kind of wish I bought a 4Runner or 1st gen instead

How do you do this? My ins is comprehensive with monthly payment options on their website. Bill due every month, price based on type of coverage selected