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

Just keep your Debt-to-income ratio in a good place and pay your bills on time and lenders will love you.

 

Planning on getting your own mechanic to go with it?haha

 

I would get the 2013 for safety features. I think its important to have at least curtain airbags.

If you can pay cash, do it.


It was hard for me to drop the cash on my Taco, but glad I did. Good long run decision.

 

Do this. That truck will hold it's value if a year later you decide you can't afford it and get out from under it.

 

Guess I'll drop my $.02 as well. I haven’t read through the entire thread, so I apologize if I cover anything previously mentioned.


- I think both (1st & 2nd Gen) are solid options. That said, if you think you're going to wind up wanting to upgrade in less than 5 years, I'd say just get the one you want now. You'll be safe as far equity goes - especially if you put a significant down deposit.


- No way would I pay 100% cash for a vehicle more than $10k (in your scenario). Having a small car loan is not bad debt, and a great way to build some credit for 'youngster'.


- In your case I would absolutely make a hefty down payment on a low-mileage 2nd Gen and enjoy it for years to come. The rest of that $25k would go into a Roth IRA.


- I'm military, and have been trained as a 'Financial Specialist'. I'm not licensed or anything, but I counsel junior service members on budgeting, retirement, and investing. Consider this scenario: If you were to invest $3,000 per year (call it $125 every 2 weeks) for 6 years ($18k total investment) at age 20, and were able to earn 10% on that - which is aggressive, but doable - you could turn that $18k into over $1 million by age 60. Play that same scenario, but start 10 years later, and you don't even make it halfway. And that is with the initial $18k investment - not contributing a penny more.


- You seem to be very smart and responsible. You have already set yourself up very well. Seems like you're in a pretty good spot to get the best of both worlds: Get the truck you want, keep debt to a minimum, have money left to invest, and build some credit.... Can't find the downside from my vantage point.


Good luck!!

 

I'm not the best person to listen to, I have terrible spending habits but I have decent savvy too (I only buy what I'm sure I can get out of at a later time). I really don't think you have any wrong decisions here, any of your choices will allow you to escape at a later date if you decide you have to. If you wanted to be extra safe though, id wait until you start your new job or go with the lower price 1st gen Tacoma. Keep in mind even the nicest used cars almost always need a grand or two to straighten out. My 93 Land Cruiser was in absolutely mint condition, even then, random ball joints and brake lines still needed changing to be safe. And I had every fluid changed. Good luck OP

 

Outside financing is just like a cash deal to a dealership. Wait till the last day or so of the month and give them hell until you get the price you want. Be prepared to hang out. There is lots of room in used vehicles.

 

I work closely with dealers, typically there is much more room in New vehicles as the factory gives them lots of money to move them. The real money is in the used vehicles and they'll be less likely to budge a lot on those especially if they weren't acquired at a wholesale auction.

 

good resource

https://www.tacomaworld.com/threads/1st-gen-tacoma-buyers-guide.156943/

 

I am a mechanic buddy

 

You won't wanna be after working on a European disaster like that haha

I've had to fix a few older Range Rovers, they're actually fine while they're under warranty. They give you a loaner for the bigger repairs.

 

Everybody knows the old range rovers are garbage. The new ones are pretty damn good cars. And I have more in my toolbox than a brand new evoque so I can handle anything this thing throws at me.