1st Gen. vs. 3rd Gen Dilemma

I had a similar story when first deciding on a taco. I went with the first gen sr5 4X4 with 200k instead of a newer taco. Used the extra $ to put down on a house. I'm at 240K miles now with no major problems. All the money i saved I used to put down on a house. I guess it's all a matter of priorities. I for one never like having debt. What would've been my monthly car note now goes to paying off my mortgage. Just my .02

 

I buy new because i don't do my own maintenance. If I did I'd buy used.

 

You could compare the two vehicles from a financial perspective but if you fall in love with the 3rd gen, even the math won't sway you.

Here is an example:

Say you find a 1st gen double cab for $13K and for the next 5 years you put in $1,000 of maintenance into it each year to fix all the basics (just to keep the math simple).

$13K purchase price plus $5K maintenance over 5 years comes out to $18K out of your pocket for five years. Assume the value of the truck is now $8K after those 5 years - so you have an $8K asset that you spent $18K on. From an investment perspective you will be out $10K if you sold in the fifth year.

Now take the new 3rd gen - I optioned out a 3rd gen the way I would purchase it (double cab TRD) and it was $38K. Now lets say you put down the $13K so you have to take a loan out at 2.5% for five years (a $443 a month payment) or $5,324.16 per year in loan payments for 5 years. With the financing you would pay $26,620 plus the $13K down payment for $39,620.

Now you have to decide what you think a 3rd gen will be worth after 5 years. So in this scenario say after 5 years you could sell the 3rd gen at $30K (78% residual value)
Total you would pay for the truck with financing is $39,620 for an asset worth $30K. From an investment perspective you would be out $9,620 in 5 years.

So in the scenarios I picked - it is a wash. But if the value of the 3rd gen went down to say 60% or $22K, then you would have spent $17,620 over those 5 years.

Of course you could take in all the other details of higher insurance etc... but at least you can see what each vehicle would cost over 5 years of ownership.

I went with the 1st gen double cab and I just waited to find a truck with less than 100K on the clock, in another 8 years I will likely be looking for a pampered 3rd gen and continue to buy used.

I like to follow Dave Ramsey's motto of "act your wage" and that debt can be a much bigger anchor than you think, especially if you need to move or change jobs etc...

 

what about a 2nd gen?

 

^^^ Good words here (Dave Ramsey is my hero) ... but you can get a nice TRD, DC/SB, V-6, Auto, 4x4 for less money. Maybe close to 34K drive out ?? $35K Max.

I just priced several and dealer was willing to go $500 below INVOICE and they keep "dealer holdback" and I don't pay for ANY Regional Extras. I had some super pricing.

 

Id just buy a first gen. Nothing like having a reliable truck and no car payment. You can always sell the first gen after a year or two and "upgrade" to a third or second gen. Take baby steps, buy cash.
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Personally i couldn't own a new vehicle. I get pissed when my 12yo 1st gen gets a ding or scratch, i couldn't imagine if it was a brand new vehicle that i was still paying on.

 

You make some really great points. There is certain freedom associated with not having any debt. Of course we don't know how much the 3rd gen will keep its value so it can always be risky.

 

Meet somewhere in the middle and get a 2nd gen! Haha good luck with your choice but I absolutely love my 3rd gen. Nothing like getting new and being with your truck from beginning to end

 

OP, the first gen DC only comes in an automatic, which in my opinion, cuts the nuts right off the 3.4. My opinion is based on having an 01 xcab 5-speed 3.4 that I loved to death and I reluctantly sold when the family was growing.

Not sure where you live or how you use your truck (consider this carefully), but if it involves hills, mountains, full loads, or towing, I would avoid the 1st gen DC. I thought I wanted one to replace my Xcab, but after a few test drives, I said no way and went straight to a 2nd gen DCLB.

I avoided the 3rd gen because first production year, smaller engine, and 6 speed auto. After hearing the complaints, I'm glad I did.

 

or you can get a 30k 2016 SR 4x4 and put down 10k down payment. so 34 after taxes and with down payment finance 24k. 5 year loan with around a 405 payment isnt too bad. lol

 

This is why I opted for a used truck, no matter how badly I wanted a new one I just simply can't afford +/- $400/month in payments. Unless I went with a base model, but when I started considering that option I found a used '04 with low miles and fully loaded TRD package, for less than half what a 2016 would cost with the same specs brand new.

It all depends on what you really want coupled with what you can afford. Make a Venn diagram out of it

 

youre right it all depends on what you can afford and what youre willing to pay for it. i love the new truck and the warranty and free maintenance haha but it all depends on what you really want to do. if i was going to build a rig for offroading only id definitely go 1st gen. but the 3rd gen imo is the most reliable and luxurious option and still very capable. only person who can decide is YOU.

 

Yup. OP's question is too subjective to be answered by any of us, we all have our own circumstances that led us to our respective decisions. For me, not only was it a financial benefit to go with the first gen I found (it only had 25k miles on it too I should add), but I also prefer compact trucks, something that hasn't existed since 2004. I live in L.A. and commute a lot, driving a mid size or full size truck around town isn't very practical for me.

 

but driving a 3rd gen through los angeles is pretty baller lol i miss my 2004 trd off road but that new v6! although there some minor issues with others is pretty nice. pulls hard in the higher rpms and same durable format as previous gen. but if it were me id get both. but that is awesome you were able to get one with such low miles. that was a come up for sure

 

yeah I was pretty lucky to find what I did, but I do have to admit....when I see a new 3rd gen rolling around in my area I get pretty envious, I just wish Toyota (or any auto maker for that matter) still offered compact sized trucks

 

What?? How can you say the 3rd gen is the most "reliable" option?

 

If your dead set on a bigger cab...maybe a 1st gen Tundra??? Not quite the double cab but better access and a full bench seat in the back. I've been thinking about making the switch and there's a bunch on CL with decent prices if you do some hunting and dealing.

 

How can you say it's not??? It's new and bc of little issues that come with every new design you think the new Tacoma isn't reliable? That's ridiculous if you think that. Little bugs will get worked out like always and I bet this truck lasts just as long as previous generations. Don't drink the kool aid! I've put 15k miles already and have off-roaded and driven half way across the country since I got it, it really is an awesome truck.

 

@Volatov it's really up to you. First gens are great trucks, but for what you want they are going to be 12-16 years old. Sure, it's cheaper, but shit wears out with time just like it does with miles (anything made of rubber such as belts and some gaskets/seals) so there will be more maintenance involved with getting an older truck.

Now, if you either have the mechanical knowledge and/or time to replace the stuff or let it sit in a shop and use another vehicle, it's really up to what you prefer.

If I HAD to buy new a truck today, it'd probably be a 3rd gen access cab sr with the manual. It has the same drivetrain from the 2nd gen 4cyls which is solid. The SR has enough creature comforts for me, and I don't know how to drive an automatic, so a manual is the only option. The next cheapest option in a manual is a TRD package, which is $10k more. No thanks.