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Financial advice for a 22 year old recent graduate, time to pull the trigger on my dream truck?

Discussion in '3rd Gen. Tacomas (2016+)' started by BakingEggs, May 13, 2018.

  1. May 13, 2018 at 10:55 AM
    #1
    BakingEggs

    BakingEggs [OP] Well-Known Member

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    Hi guys, I'm a long time lurker. Just recently graduated with a degree in Mechanical Engineering and I got a job with a compamy I've interned with for two years.

    I apologize if this is too personal, but coming from an extremely frugal/ research heavy guy, I would love to get the opinions of others to determine if this is a good move for me.

    I have always been a car guy. I love motorcycles, dirt bikes, trucks, cars you name it. And really don't have too many hobbies besides lifting weights, and researching cars, fixing cars etc.

    Here is my dilemma:

    Is it a bad idea to buy a brand new Toyota Tacoma at 22?

    So my financial situation is this:

    $68k/ year salary
    $30k in savings
    $0 debt
    $500 rent
    $500 utilities/food etc.

    Maxing out 401k, Roth IRA etc gives me $1300 left over per month.

    I plan to put $18k down on a Tacoma, with payments around $300 over 4 years.

    I figure $500 saved, and the other $500 for fun/gas/insurance?

    I saved a lot of money in college, and my plan was for this purchase. I've never made a purchase this large before, but it's what I've wanted for the last 4 years.

    I realize buying new is never a great idea, but these trucks hold their value so well (for reference a 2014 with 40k miles is 26k average in my area, while brand new is $33k, along with lifetime free maintenance, and the warranty)

    If I don't purchase a new Tacoma, I was planning on picking up something fun like a Focus ST, Subaru WRX, Mazdaspeed3, Civic Si etc.

    However those cars run 10-15k and to be honest anytime I am wondering if I'd be better off using that money for a down payment on a Tacoma.

    That also being said, I wouldnt hesitate to pull the trigger if I could find a nice well taken care of (12-15) second gen for 15-20k but that seems almost impossible.

    THAT being said, I have also kicked around the idea of buying a nice reliable 10-15k car like the above and then saving $1000 or so a month for the next two years to when I could hopefully buy a new Tacoma with cash, by that time the new Ranger and Frontier will probably be out, and I might be able to actually get a 2017/2018 for closer to $25k.

    Thanks for any help guys. I really do appreciate your time.
     
    DubfromGA and CMD-KY like this.
  2. May 13, 2018 at 10:57 AM
    #2
    anthony250f

    anthony250f Well-Known Member

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    I would hold out for a second gen if anything
     
    ManBeast, alwaysHI, Oreo Cat and 3 others like this.
  3. May 13, 2018 at 10:58 AM
    #3
    HBomb74

    HBomb74 Well-Known Member

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    Buy a house.
     
  4. May 13, 2018 at 10:59 AM
    #4
    goose443

    goose443 Well-Known Member

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    Civil engineer here, I was in a very similar situation when I graduated 2 years ago and I went ahead and bought one the day after I graduated! No regrets!! Glad I did it. Don’t get me wrong, I don’t enjoy paying for it every month, but I definitely think it’s worth it. Hope this helps!
     
  5. May 13, 2018 at 11:00 AM
    #5
    9TRDTCO

    9TRDTCO Well-Known Member

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    Well it sounds like you got it all figured out! You are making good money and sounds like your priorities straight. I bought my first new taco in Oct 2015. I have a 16 TRD OR and I was only 22 at the time when I purchased it. Wish you the best of luck with your decision :thumbsup:
     
  6. May 13, 2018 at 11:01 AM
    #6
    BakingEggs

    BakingEggs [OP] Well-Known Member

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    Thanks for the feedback. Actually just came across this guy for 17,500 with 63k miles.

    Do you think that's a better option?

    Screenshot_20180513-140045_CPlus for Craigslist.jpg
    Screenshot_20180513-140049_CPlus for Craigslist.jpg
     
  7. May 13, 2018 at 11:02 AM
    #7
    BakingEggs

    BakingEggs [OP] Well-Known Member

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    Glad there is another guy in my situation! Making payments is going to blow, but I was hoping looking at a Cement TRD OR every morning before I go to work will be worth it
     
    DubfromGA and goose443 like this.
  8. May 13, 2018 at 11:03 AM
    #8
    BakingEggs

    BakingEggs [OP] Well-Known Member

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    Thanks buddy!
     
  9. May 13, 2018 at 11:04 AM
    #9
    Taco Buggy

    Taco Buggy Well-Known Member

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    I’d pull the trigger and buy your dream truck. It sounds like you have your head on pretty straight for a 22 year old. You studied hard and got a good job. Enjoy the fruits of your labor. Life is short so enjoy it.
    :thumbsup:
     
  10. May 13, 2018 at 11:05 AM
    #10
    hiPSI

    hiPSI Laminar Flow

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    You seem like you have your priorities right. Buy what you want as long as you can afford it.

    You should know by now that, for some, vehicles are a passion. That means logic goes out the window! Buying a new car is one of the worst investments ever lol. But, millions do because... passion and feelings.

    I know you won't understand this yet but life is short and you only get one shot at it. Buy what you want, when you want as long as you can afford it. My .02

    Oh, buying a Tacoma is like buying a all beef hot dog instead of a cheap hot dog. Both are bad choices but the all beef is bad, not worst.

    Yes, I like hot dogs. The cheaper the better lol.
     
    DubfromGA, Taco16Jessy and beergeek like this.
  11. May 13, 2018 at 11:06 AM
    #11
    Itchyfeet

    Itchyfeet Well-Known Member

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    Don't buy a house! I was all giddy about buying a house when I was 23, bought one and two years later I was like f-this. I want to move to a different part of the state. I sold the house, but at the end of the day I'd been better off renting.
     
    cohiker, crymes and Taco16Jessy like this.
  12. May 13, 2018 at 11:06 AM
    #12
    Mxpatriot

    Mxpatriot Well-Known Member

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    You've got your stuff wired tight, go for it. Finding that mix between financial responsibility but still living life is important - you only get to ride this ride once. There's something to be said for starting with a clean slate and making it your own - especially when you plan to keep it 10+ years.
     
    06trdtaco, DubfromGA and StayinStock like this.
  13. May 13, 2018 at 11:18 AM
    #13
    Topanga Taco

    Topanga Taco Husky Hot Saws

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    I’m with post #3. Put that rent money into a mortgage instead. Above all, you will begin to establish credit which in your young days is good. I’d back off on the amount you’re putting down though. That money can go elsewhere.

    2E88F54A-F4BF-4673-92FD-3E3545B2478C.jpg
     
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  14. May 13, 2018 at 11:29 AM
    #14
    slogoin

    slogoin Well-Known Member

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    If your confidence is high about your work stability (and it sounds like it is), buy the truck. You are putting enough down to where you should qualify for ultra-low interest (even if you have limited credit). Combining one of the best resale values out there with improving your credit, easy call.

    Additionally, if you applied half your research aptitude to stock investments...you would earn way above what you will be paying in interest.

    You got your shit together, get a truck and pick up chicks.
     
    FRE1809, cshrum and DubfromGA like this.
  15. May 13, 2018 at 11:33 AM
    #15
    Bowhuntercoop

    Bowhuntercoop Well-Known Member

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    They ain’t making any more land, they make more tacos every day. You will thank me when you’re 30-35 sell the house or land and make enough to buy a few tacos cash.
     
  16. May 13, 2018 at 11:36 AM
    #16
    Itchyfeet

    Itchyfeet Well-Known Member

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    Forget chicks, pickup money
     
  17. May 13, 2018 at 11:44 AM
    #17
    Crimson Flam3s

    Crimson Flam3s Well-Known Member

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    I am in a similar situation although not graduated yet.

    Gave a small downpayment for the truck but with 0 apr. $500 a month for it is not a big issue so what I am doing is saving enough every month to pay it off after 2 years, or invest the money to pay it off and make even more, wouldn't make a difference since I am not paying interest.

    I am sure you can afford it, but if you coudlld have better use for that monthly payment is up to you.

    In your situation I would go for it.
     
    DubfromGA likes this.
  18. May 13, 2018 at 11:45 AM
    #18
    boynoyce

    boynoyce .

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    Since you asked-

    You appear to be a smart person.

    You probably know what you want to do already.

    Do it, and take ownership of your decision.

    That is a good way to live life, imo.

    Creating numerous threads on a public forum asking others what you should do, not so much.

    Good luck.
     
  19. May 13, 2018 at 11:46 AM
    #19
    anthony250f

    anthony250f Well-Known Member

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    That’s where I’m at too. Sick of wasting my money on rent. Would MUCH rather be paying off a mortgage
     
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  20. May 13, 2018 at 11:46 AM
    #20
    splitbolt

    splitbolt Well-Known Member

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