Purchasing a Tacoma with cash

But then you couldn't brag to friend that you paid cash.

Who cares about life savings.. buy two tacomas, a house you cant afford and declare bankruptcy when you dont feel like trying to keep up. Its the American way.

 

It depends on interest rates. If you're 80 in the bank is at a higher interest rate then the car loan technically your gaining by not paying cash for the car. If the car loan is a higher rate than what the money in the bank makes you paying cash is better. I'm going to bet that the loan is going to be a higher rate than your going to get on the cash in the bank so paying cash is therefor better. Investing that 80k on the other hand is better but depending on term makes you less liquid.

 

Having no debt is one benefit. You realize that when you finance a vehicle you really don't own it till its paid off.
Even at the low interest rates, do you really understand the total amount your paying for the vehicle.

What you do with your savings is your choice. I tend to look at part of my savings that is put away each month is for a future vehicle. I also am getting old enough to have the attitude of you can't take the money with you when you die. Being debt free is nice. It puts less stress on things when something unexpected crops up (medical, A/C , new roof, etc).

 

Sorry to hear you have education loans to pay off. I was lucky to get through college without any debt. But that was in the early 70's. I can only hope your work compensation will increase to help you out.

 

All depends on how much return you are getting on savings / investments, also how much you want to extend your self. But not much benefit, just less hassle. Young people are usually more aggressive on their investments, so can yeld higher returns on investing the cash over the % interest you pay on the loan. As you get older you are less aggressive on investments so the auto loan is not worth it.

 

I've gotta ask (and it's none of my business so feel free to tell me to FO). What is your degree in? Are you earning in your degrees field? And what kind of rate is the student loan?

 

Kinda off topic but I recall when I purchased my mustang the Ford rate was 0%. A no brainer really. Car costed 38k out the door 0%. Soon after the ford credit plan changed. I saw adds for the same car for 34 or 35k but at 5% or something and the out the door price was the same!

 

Yes. I realize that one doesn't own a vehicle until it's paid off. And I also realize you end up paying more depending on the interest rate.

I see your point about being debt free. I'm almost thereby. Just car. House. School loans. But to your point. Let's say the roof goes bad on both of our houses at the same time. I have 40k in the bank and a financed truck. You have say 10k in the bank but a paid off truck. I have no issues replacing my roof. You now either have to get a loan for the roof or sell the truck.

Maybe I'm just paranoid but I'd rather have a car payment and lose 3k at the end but still have a full bank account than owning a truck and not having as much savings.

I know you can't take cash when you die. But I've come to realize I will never have that much money hanging around to worry about it.

 

Honestly I have had better luck negotiating deals with straight cash purchases. They usually try the 4 box strategy when you're looking at financing as well.

When I bought my Tacoma, Toyota Canada was offering 4.99% on 2017 Tacomas and the bank line of credit just did not appeal to me. Having the money to do the purchase was nice seeing as being in debt or owing someone/something just does not sit well with me. The idea of yet another bill coming out each month just makes life a little more stressful.

And in regards to savings and investments I definitely do that as well; however I would hate to put my money in something risky which could have good returns and end up losing it and not be able to pay for the truck that I am driving around.

 

This week I negotiated a cash price over email / text for a few days with a dealer about an hour away for around 35.5 OTD. MSRP was 38.7. I knew exactly what I wanted and that was the closest dealer that had it in stock (didn't tell them that). I told them I was ready to sign and they offered to bring the truck to me at work. I wanted to drive there just because I wanted to see the dealership, talk in person, etc. Got to the dealer and wrote my personal check for the full amount and another salesman told me about the Toyota Incentives going on right now ($1,000) off if you finance with Toyota. I financed 10k with Toyota at 1.9% and they changed my OTD to 34.5. Ended up writing another check for 24.5. The salesman told me I could pay it off next week if I wanted. I will probably wait a few months just because its a low rate. Salesman told me they don't lose the 1k - Southeast Toyota pays it back to them. It was interesting and I am happy with my purchas

 

Like my grandfather always told me, I rather have one dollar in my pocket, then own two. I'm turning 48 today & I been debt free since age 25. Only thing I owe is my utilities at the end of the month & my dang taxes at the end the year.

 

What's the motivation to pay cash when interest rates are so low? My bank has 72 months for 1.99%

 

Far from a millionaire just a hard working UPS driver. Last time I purchase a vehicle was in 99, also I tacoma.(also cash) so I had 18 years of zero car payment. I think you can save a nice chunk of change in 18 years. Some people are actually smart when it comes to saving and trying to leave there life debt free.

 

Very smart! Put the money away like a car payment and pay cash when needed. Do you listen to Dave Ramsey?

 

Don't know Mr Ramsey. But thank you.

 

He has a radio show touting debt free living, the way you live.

 

Smart man then.. I will take advice from him any day.

 

Auto dealers will do every thing they can to make a buck. I negotiated my deal, made a 500 dollar deposit (not required) so they couldn't (at least I hoped) sell my truck when it came in. When the truck arrived, asked them to send the paperwork to my credit union, they gave me the run around for two days (they expected me to finance with them). Then when sitting down with the sales guy, I got multiple people explaining it is a long process and I should just tell them what rate I got at my credit union. I walked, went and found better financing online, had money transferred to my checking account, walked in with a personal check and still got the run around about not being able to sell me the truck till my wife was with me and we have time to go through the finance office. Again I walked out. Finally they were willing to let me go through the finance office (took almost 2 hours) and allow my wife to come in and sign the one freaking thing she needed to for the title.

Dealerships will do anything they can to make a buck.

 

Last year we bought a Honda CRV. The dealer took our offer and not until the very end of the deal I told them we were paying cash. They were pissed! The salesman told me to take out a loan and put my money in the stock market. I told him I don't need financial advice.

 

Sorry for the bad experience. It is unfortunate you could not have found another dealer with the same truck and deal. Hopefully, you expressed your displeasure on the survey that Toyota sent you.