Anyone who bought their truck with cash?

Yes well not green backs counted out on the table but a bank check.

 

Payed cash for my 06. Paid cash for my wife's 2012 Jeep Grand Cherokee.
Unless Toyota offers 0% , I will pay cash in 2016/2017 when I buy a new Tacoma.

Credit rating is good. We were debt free 12 years before we retired. Still debt free.

 

I could have, had the cash for it, just went ahead and did the Toyota 36 month finance.

 

Might be a stretch to get quite that low. Should be relatively easy to get $1500 below MSRP after dealer fees and what not. People do get $3000 below MSRP (check out the "How much did you pay" thread) but that's not typical at all. Very region dependent as well as to how much below you might get. In some regions a Tacoma doesn't last more than 7 days on a lot and so the dealers just aren't going to negotiate much below $1500 under after dealer fees.

 

great advice...Best way to make $ is use someone else's $.

 

make the dealership a completely unreasonable offer, like 31K out the door for a truck with supercharger. Tell them they can finance you for ANY interest rate they want. They will do it, then after the first payment go in and pay it in full (either refinance or pay cash if you can).

Thats how I got my 2010 with supercharger, exhaust, etc. 30,500 tax title license supercharger exhaust.

 

[I've TE="DVexile, post: 10236171, member: 144469"]Might be a stretch to get quite that low. Should be relatively easy to get $1500 below MSRP after dealer fees and what not. People do get $3000 below MSRP (check out the "How much did you pay" thread) but that's not typical at all. Very region dependent as well as to how much below you might get. In some regions a Tacoma doesn't last more than 7 days on a lot and so the dealers just aren't going to negotiate much below $1500 under after dealer fees.[/QUOTE]

I've definitely seen this, cars (everything I've looked at from Toyota to Hyundai to Ford) tend to be much cheaper in FL (where I live) than SC (where I go to school).

 

I've also thought about this, pulling the whole "I have $18k on right now that I can buy that truck with" card. If they refuse, walk out. I have a friend who's dad bought a brand new $30k Mustang GT for like 22k out the door and swears by that method.


Ive

 

So having a payment to pay on your truck is a good thing? Nope. If I could pay cash and have no payment I would do just that. My **** eating grin would just be twice as wide for having a new truck and already owning it. Just my opinion.

 

Dealerships today don't care if you finance or pay cash. The only way it makes any difference to them is if they are financing in house, which is not likely, or if they get a kickback from the loaning bank. They are not going to sell you a truck for less than what they paid for it if you throw a bag full of cash on their desk anymore than if an outside bank gives them the money. They're in business to make a profit, not break even.

If you have USAA, look at their car buying tool to see what people in your area have paid for the exact same truck you're looking at.

 

Yeah cause you are building credit. If the kid doesn't make payments on anything he has no established credit history. Once again you need credit in America from everything to getting approved for a cell phone service, utilities, cable, mortgage. Having a responsible credit history is the only way to keep getting low rates for big ticket items like a mortgage and not have to put down security deposits and such on cell phone services and utilities. Ok I am unsubing from this now lol too many different opinions and I have thrown mine out there a lot over the past 2 days. Wish you the best of luck kid and hope you make sound financial decision and responsibly establish a solid credit history. Believe me you use it a lot, especially just starting out and will need it when you decide to buy that first home or else you will be getting a low mortgage bal or a high rate. Anywho take care!

 

Not trying to argue with you but I thought in the OP first post he said he was getting a loan. Hence building credit. I was speaking in my and others case in which we have credit established already and would not like to have a payment to worry about. What if someone has payments and they lose their job and the bank takes the truck back because you can no longer afford to make payments. Has happened and could happen to some.Different strokes for different folks but to say owning outright is always a bad way to go is just silly IMO.

 

If you lose your job then what you really need right then is liquid cash to pay for expenses while out of work. A paid for vehicle is not a liquid asset. Smiling smugly about owning your vehicle outright while the electric company turns out your lights isn't a good outcome either! So if you have the cash but purchasing the vehicle would reduce your liquid assets for emergencies too low then actually purchasing with a loan despite having the cash on hand is the smart move.

In general paying down debt and avoiding debt is very sensible financial planning. But you also need to have adequate cash reserves to handle living expenses for a number of months. Aggressively paying down or avoiding debt can sometimes result in a worse outcome during an emergency than having had more debt and more cash reserves. It is all a balance.

Exactly. I have no auto loans right now and doubt I will in the future either. But I have taken out loans for vehicles despite having cash on hand specifically because I preferred the liquidity of the extra cash on hand at that point in time (and in that case the loan interest rate was the same to slightly lower than my savings interest rate so I wasn't even losing money).

Most of these decisions are very dependent on the person and their situation and any sort of blanket statement one way or the other doesn't make sense.

 

The only advice that I can give is do what you think is best for you and your current/future situation. Majority of the post that I have read here is good but the final decision is one that you have to make.

The way I look at it (and my way of thinking might be wrong) is:

If you are looking to build credit, you can do it in several ways:
1. Pay for majority of the truck but leave maybe 5 or 6 thousand on it and finance that amount. That will give you low monthly payments and you can have it paid off within a year or two. That would help build credit. You can also do the opposite of that.

2. If you want a new truck but you do not know if you want it for the long term (maybe wanting a 3rd Gen Tacoma in a couple of years)...you could lease a new Tacoma. I know this is prob. not a popular choice but you can put down a small down payment, have low monthly payments, and depending on how long you lease...you can walk away from that truck at the end of the lease and get something else. This also helps build credit.

 

I bought my 2015 Base AC for 20004.00, before rebate, so it can be done.

What the others have said about possibly getting a better deal by financing is true. The last 2 vehicles I have purchased, (2014, 2015), I financed but paid off before the first payment was due. Why, you ask, did I finance when I could just pay cash? Because there were additional rebates for using the financing ($500 each time).

Also, if you're just getting started an auto loan with an excellent payment record will be good for your FICO score and overall credit worthiness. I am about to retire (next month) and don't foresee ever actually needing a loan again in my lifetime but credit is important for someone just getting started.

 

Well said!

 

I wrote a check ....

 

Unless you get 0% financing you are most likely paying extra thousands over the life of your loan. So the guy who gets the best price on a truck because he is paying no interest with cash and wants one less bill to go along with his mortgage, cable,phone,electric oil bill etc is absolutely doing the wrong thing. I,m glad everyone here is so financially responsible. Sometimes when I have extra money in tHe bank I am tempted to buy another high end fishing reel or take an extra vacation. For me personally I would rather buy my truck(for what would most likely be a better total price than financing)skip the $500-$600 monthly payment added to my many other bills and be happy to at least feel like I have more money after my work check is cashed. Illusion or not that is just me.

 

I used to pay cash for vehicles. Cars. Boats. Trucks. Motorcycles.

But with interest charges currently so low its not hardly worth it. I got 1.9% on my new Tacoma.

 

The point being missed by many on this thread is - When you pay CASH for a vehicle, you still have a payment! You pay yourself back (with interest) for the cash you used to make the purchase. Any debt; mortgage, rent, revolving credit /cards, etc, results in a net reduction in your income. It's not fiscally responsible (unless you happen to be independently wealthy) to reduce your savings to save a payment. There have been many valid points made regarding establishing credit, FICO scores, low interest rate etc, but, if you achieved financial independence, you most likely already have excellent credit due to effective financial management techniques.