College student thinking about buying a 2013 Tacoma, leery on dishing out the cash

^^^^^^^^^yep......good idea.......

as long as you like the truck.....and the $$$ numbers are in line......

 

And I just want to add that a 2013 with that low of mileage is a gem. Don’t pass it up. You’ll kick yourself.

 

I think you should wait until you get a job.

 

that's okay, my dad is currently in Tacoma mode... He misses his spruce mica TRD Sport dearly and is trying to get me to pull the trigger because he wants to drive it haha!

So it's good to have a more neutral view on the situation

 

X2 !

 

If you're living at home, pay cash or finance half but it would be nice to have a fully paid off newer Tacoma as you venture out of your parents house. Either way, i'd try to not have a car payment when you start paying rent/mortgage otherwise you'd be bombarded with both rent/car payment all at once, if that makes sense.

 

Do you have credit? It sucks to take a loan on something you can pay for, but unfortunately in life credit is a necessity. In the future you will want to move out of your parents place. Regardless of if it's buying, or renting they will run a credit check on you.
Pay for 1/2 the truck and finance the rest. Id skip the dealers financing though. They are usually very high.

 

I bought my 2012 taco when I was 21. I was only able to put 4K down but I regret nothing about buying it. Paid the truck off last year.

 

I'd buy it. It looks pretty sweet but get it checked out of course. Paying it off entirely is the way to go. If you live at home and don't have much in the way of expenses, bite the bullet and pay it off. I know it hurts but you'll be over that in no time once you've had the truck for awhile.

Monthly payments, or bi-weekly payments is just throwing money out the window. Make an offer to the dealer saying you want to write a check for such and such an amount (around here unfortunately, there's not much negotiating because a truck like that would last maybe 1 or 2 days on the lot) and see how it goes. Good luck.

One other thing; when you go looking for a mortgage in a few years, one of the first things the guy will ask is "do you own a vehicle?". It would be pretty nice to tell him you own a 2013 Tacoma outright.

 

I was in the same situation as you when I bought my 2013 Sport. I'm 22, live at home, no bills except for car, insurance, gas, tolls, etc.. I paid 22.5k for mine, put 11,800 down in cash and stuck the rest in the bank. I went to a local credit union, dealer wanted 7%, I was able to finance through the credit union at 2.9% for 48 months. Payments on my $10,700 are only $240ish per month. I make double payments while I still can. I have the rest of the money in the bank if I ever loose my job. I can pay the truck off and live comfortably for about 6 months. I say finance less than half. It will help build your credit and looks good if you ever decide to buy a house. The Tacoma is probably the best vehicle to buy in terms of longevity. If maintained right, you will still be driving it 15 or more years from now. I bought mine in April, and have put about 25k pain free miles on it in 8 months.

 

What is the first gen that you are looking at?

 

If it's the vehicle you want- get it. As noted, you can probably get a better financing deal at a credit union with a big down payment and work on your credit rating (which, if good, will save you money in the future). But, do shop around for the best financing deal. Aside from the $$$, you will buy a vehicle that (if properly maintained and cared for) could last you 10-20 years- or more. Off the top of my head, I don't know the reliability of the later gen tacos, but if they are anywhere near the legendary status of the gen 1's, you can't go wrong. Having the peace of mind knowing you have a quality vehicle, that will last you for a long time and you don't have to regularly repair has it's own benefits.

 

Zero chance I would pay 5% interest to "build" up my credit. People telling you otherwise are confused. Also , 24K is too much money for a truck for a college student, end of story. If you have to take out a 5yr loan to "afford" a vehicle, well guess what , you cant afford that vehicle.


There are other more beneficial ways of building ones credit. Such as monthly use of credit card and subsequent balance pay off ( IE not carrying a balance).

You are young and this is the time to learn about personal finance. Read a millionaire next door, become a member of bogleheads, and read jack bogle.

Asking a truck forum about a financial decision isnt your best path. People are giving their opinions but have no clue what you have saved, what your post graduate income will be, etc. Post this SAME question of boglesheads and see where they take you.

 

Agreed for the most part, but he said he could pay cash for it. So technically he doesn't "need" the loan to afford it. That said your advice is pretty spot-on. Ask this question in Bogleheads or even better Mr Money Mustache (though I think that crew is a little over the top)

I wish I knew at 22 what I know now.

 

Put $1K down on a $5K vehicle and save the $20K for a down payment on a house. Driving a paid off $25K vehicle and living in a rental will get you nowhere.

 

Don't blow money on a house buy a roof tent for the taco. Rule of thumb, if it has a front and back door, 2 tits, or rubber tires it's going to cost you money.

 

Tons of good advice and ideas here.

I regret putting off getting my current truck and driving semi-beater rigs for years.

You’ve got the means to have a nice truck so go for it and don’t look back. If you manage things right, it’ll be a stepping stone for bigger things down the road.

 

Ha, me too man.

 

I agree w the others recommending a large down payment and financing the rest. Also, if your payments are low enough, you can add a bit extra to the principle and pay it off sooner. You’d get your first loan paid off in no time. Unless you can get more from saving or investing, consider always paying off consumer debt earlier..
As for the question above, unless you put a crazy amount of miles, damage the truck or fail to maintain it, you should be able to recoup a significant portion of the price in a couple of years. Go to Kelly Blue Book or NADA and put in some variables to get a sense of values.
Congrats on your pending graduation and upcoming job! You picked an excellent career

 

Yeah because we always need more engineers to put drain plugs and oil filters in retarded locations