Do the Toyota Dealers really intend to drive off customers?

So you are calling 2.49% a "big fat high interest rate", be my guess, but here's the 411 for you, if money is worth more today than it will be next year, then paying a loan with next year's cheaper money is a serious advantage.

And dude, you don't need to reduce yourself to name calling, makes you look pretty childish.

 

Nothing in what you wrote makes any sense at all; please explain your point better.

 

I must have picked a nerve my point was even at 2.49%. It does not make good financial sense. To take out a loan if you can pay cash. You are putting yourself into large payments for 5-7 years. Also you still are paying more then the OTD price your payment is based off.

Your truck payment is eating into your monthly discretionary income. Every month your payment amount is ear marked toward debt.

Like I said pay it off as fast as you can. Why pay the bank 70-80 a month in interest. You could use that money for gas or food.

I will say one last thing and leave it alone. There is no such thing as good debt.

 

I rest my case LOL

 

If I leave my money in a mutual fund or some other place that I'm making lets say 5% interest vs my car loan that is at 2% I'd say after everything is all said and done I'm gonna come out 3% richer.

Edit: That said I paid extra on all of my payments to get my truck paid off 2 years early cause I hate debt.

 

Welcome to the TW

 

Wow i was just posting about buying a Tacoma, and how hard it is at this time, got some good advice as well.

Lets close this as it seems to have gotten into a fiasco over getting a car loan or not.

I think adults can make their own decisions based on their own situations and priorities.

No judgements needed.

Have a great night.

 

Apparently money management isn't your strong suit. Two questions:

• Why would I want to take money out of investments which are earning more than double the interest rate I'm paying on the Tacoma?
• Why would I want to bite into my liquid cash (well over the cost of my Tacoma) which is earning at a rate only a half-percent less than the interest rate I'm paying on the Tacoma?

The fact is I'll be poorer after four years (the term of my loan) if I'd paid cash versus taking out the loan I took out. As for eating into my monthly discretionary income, well, even with the payment I'm currently investing several times the that payment per month, so the only different between now and before I took out the loan is I'm investing slightly less per month than I was before. In other words, contrary to your post, this low interest debt is anything but bad debt, it is good debt which will make me money over the term of the loan.

 

Pay Cash ? The way things are going in the used car market, buying the correct 4Runner or Tacoma, may be a good idea, if you intend to make a few bucks.

What is a bank CD of $40K - $50K paying now ? Pennys, and/or tie your money up for 5 - 7 years. Now compare a new 4Runner or Tacoma, used price, vs new. Dealers are selling these, and a Tacoma, up to $3K - $5K, over original MSRP. And, in todays market, you can drive it 10K miles, and still get a good return.

Now, if the commies invade Taiwan, what is going to happen to the chip makers ? No chips, no Tacomas. Your new truck or whatever may skyrocket in value.

B 1

 

I - JUST WANT TO HEAR ABOUT THE TACOMA STUFF

 

Even if we explained it, you still wouldn’t get it.

 

I guess I'm old and out of date but I have never had any car loan for more than a 3 year note. When buying my new truck a salesman suggested a 72 month note He said everyone is doing it I explained I never wanted anything that bad most of my girlfriends did not last that long So bought truck on 3 year note will be paid for in 6 months I just don't like being in debt I do understand my plan does not work for everyone and we all get to chose

 

I vote we stop the finance discussion. I admitted it was personal opinion (didn't I?), and everything is nuanced. Even past loves...

 

That's exactly right and it's great that someone finally pointed that out. Finances are a personal choice and no one here knows another person's individual financial situation. Cranks me up to see all these "if you don't do it my way you're stupid" people come out of the woodwork when the discussion turns to car loans.

 

Dude, do you really think you’re smarter than the lending institutions that dictate monetary policy?
Do you really think they going to lend you $40+k knowing (yes, they know about inflation) they’ll get back less? How stupid do you think they are? They don’t want to hold it, that’s why they’re lending it to you, for now. Later on, you’ll be providing them some badly needed residual income lol!

As interest rates ratchet up north, everyone will be strapped for cash (liquidity) sales will drop, incomes will plummet and mass layoffs begin and it feeds on itself for more pain and misery.

Wow on to those that have investments, they’ll get crushed! And wow to those who owe, as debt, any debt will be harder and harder to pay.
If you don’t understand that, don’t bother asking for an explanation cause you’ll never understand it, until life teaches it.
Good luck

They're hard to find. Literally lol!

You'll be better off than the rest of the crowd

 

Ahhh, I see you subscribe to the Chicken Little "The sky is falling" crowd.

The fact is, debt is like a tool, no different than a chain saw; use it stupidly and you will get badly injured, use it wisely and reap the benefits.

Enjoy your life in poverty.

 

Did his hold true in 2022?

 

One year out of 15? Yeah, so what's your point?