4th Gen Sticker Shock

Wait until 2025, when things get even more expensive



Funny how inflation works!

 

Toyota of Riverside 53k for an Off Road with a “market adjustment” of 7k. And their financing is 7.99%.

 

McGee in Claremont nh offered me $2300 of incoming tacomas, the pricing is astronomical and regardless of the feds posturing, the market isn’t in agreement that rate cuts are coming… there will be special financing and discounts in the near future. I don’t remember ever seeing more than about $2500 off a 3rd gen at a given time so it’s clear the dealers view the pricing as too high.

 

I got my 2019 TRD OR in November of that year with $4500 cash back. And they had a good supply. It actually felt weird buying a Tacoma with cash back…..but then COVID hit and pricies shot up. I was around $36,500 OTD with Tech package all weather mats and mud guards.

 

Were about $15,000 MSRP wise on similarly equipped Tacomas within a few years, i feel the people paying these prices must be pretty well off. $50,000+ for a decent off road is mindboggling. Especially considering no promotional rates. Imagine financing a $50,000 Toyota Tacoma at a high interest rate- literally lighting major money on fire.

 

So about the same price for 2024 4g in today's world? That's pretty spot on for the price of a base OR. I reserved my OR with multimedia and upgrade package for a $46k sale price.

I think these discussions better reflect the differences in the US economy. Areas/jobs with pay keeping pace with inflation vs locations/ jobs that don't.

 

Perfection.

OP: DAE new cars expensive?

Don't worry, once they become too expensive for anyone to buy, then prices will start to come down. Or as economists say, the best cure for high prices is high prices.

 

the ie dealerships are some of the worst i've seen in all of socal. I spent months researching and talking to dealers across oc/la/ie/sd for my taco. The ie ones were the most aggressive for markups, bs'ing, and add ons. I think the average buyer base there is what allows them to get away with it.

 

I’m powerless against your math!

As pricing has been impacted by inflation, we are now dealing with inflation based prices and inflation fighting interest rates at the same time.

A $35,000 loan at 2% interest is gonna have just a wee bit smaller payment than $46,000 at 8%, for those of us not paying cash.

we have 3 cars over 100k in our family, the wife’s CRV has 198k. When the car market got tight, I told everyone to buckle up, we’re running what we got until this shit settles out. Statistical Regression being what it is. We are getting closer, just need to see rates come down.

 

Wrong sir they were discounted from start. I got my 2016 for $250 over invoice. Most dealers were doing $250-500 over invoice in allocations there was even a thread here with invoice pricing. Prices / MSRP did sky rocket as the years went on.

 

Also, check to see what a truck optioned out like your 2019 cost in 2024. About 53k before TTL. So to get a new motor, transmission, rear coils and a speaker that pops out of the dash is only 23k more in 5 years...

Base OR has nothing on it.

Totally worth it.

Also be sure to check Toyota's profit over the last 5 years, you will see inflation has less to do with this than corporate greed.

 

I see a lot of “that’s just inflation, so pay it” arguments, and if it’s a traditional 2-3% model, then fine, I’m on board.

But the last couple years represented an historical non-linear jump in prices due to temporary bottlenecks in both parts availability and distribution. Those bottlenecks have long been solved and inventories are already approaching 2019 levels. Yet Toyota says nothing to see here, move along…

Toyota goosed Tacoma prices (and shamelessly deleted features) according to 2021-2023 standards, but we already see inventories & average new car prices declining (see: Tundra). And the Fed just acknowledged that three rate cuts will come later this year.

Just reading the tea leaves, even the biggest Tacoma fan out there (me?) has to punt on Gen4 prices until they load discounts. And nobody in their right mind should be putting up a deposit or paying any dealer any markups.

 

Literally not how the word "literally" should be used.

 

Appropriate

 

If a truck is valued at say $50k, and it has a $10k dealer mark up....why would a bank finance it? Is it common for banks to loan money over what the value of an item is? Would they approve a $60k loan on a vehicle that is valued at $50k and that will begin to lose value immediately?

 

Not familiar with buying a car huh

 

I try not to finance shit for more than its worth.

 

Oh for sure; but to answer your question, yes.

Those with great credit, can finance up to 120% LTV with most lenders, and some specific lenders will go as far as 135% LTV although some are all in on that LTV, and others allow it for front end by itself.

Buying an expensive vehicle, especially with a mark-up, will mean that person will need great credit.

If not, they'll need a substantial down to not only offset the ridiculous mark-up (if applicable), but to cover any taxes and fees to reach an LTV the lender is comfortable with providing.

Having run a dealership and being a finance director for a good 11 years, you know like the back of your hand many of your lenders program rules, and often will have a certain someone you have a great relationship with to offer exceptions in order to make a deal happen.

For a great credit customer, the whole "let me see what my manager can do..." is a crock of shit however when I've got that one person that is in a gray area and the system auto-approves at a not-so-great rate or LTV, I'll call it in (after reviewing their bureau) and shop it for a much better rate.

Although I've also done the same for excellent credit customers getting a 3.39 down to a 1.9 with US Bank, Bank of the West, or other prime lenders.

 

Great explanation, I appreciate it.
I would (think) that folks with great credit scores wouldn't be paying huge mark up....being smart with money is kinda how they got that score.

 

You are right on the money.

Last new vehicle I bought was with 0% interest; it's hard borrowing money for free.