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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 (2016-2023)' started by BakingEggs, May 13, 2018.

  1. May 13, 2018 at 2:53 PM
    #61
    Exracer2

    Exracer2 Well-Known Member

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    Do whatever you feel comfortable with. At your age you will be impulsive and friends will always want to go on adventures. This could be fly away vacations, off road trips, concerts and just enjoying being young and free from many adult obligations. Don’t make yourself car poor and unable to do the things I just listed.

    The economy can change and even in demand jobs can dry up or disappear with the next one paying much less than you currently enjoy. Some people seem to always ride the top of the wave and others get pounded into the sand repeatedly. You don’t want to lose your finanacial stability and fight to make payments or maybe no matter what you never seem to hit hard times. You never know what twists and turns your finances may take but you can’t live in fear either.

    You seem to have a good financial foundation. Make choices that allow you the freedom to do the things you want and weather the financial storms. Work to live don’t live to work. I lived a lot when I was young which is helping me now avoid any sort of mid life crisis because I did so much.
     
    FireRoadFan, Cxavier2206 and boynoyce like this.
  2. May 13, 2018 at 2:55 PM
    #62
    Doggman

    Doggman Well-Known Member

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    I was in this boat 2 years ago. Bought the truck and it was the right call.

    House wasn't the right play for me then and it's still not today.

    Depending on where you live, you can pretty easily do both. Get the truck if you want it. Buy a house if you need it, otherwise don't.
     
  3. May 13, 2018 at 2:56 PM
    #63
    Woodrow F Call

    Woodrow F Call Kindling crackles and the smoke curls up...

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    In some cases this is correct, but when I started looking for a Taco, there weren't any deals worth considering for a 4X4 Taco..... and I was willing to drive. I'm just not willing to pay $25K for a Taco with 100K on the clock.

    Seriously, I was opposed to buying new until I started seeing prices. I bought mine for $29,900 before TT&L.
     
    Spare Parts, Joe23 and Cxavier2206 like this.
  4. May 13, 2018 at 2:56 PM
    #64
    koditten

    koditten Well-Known Member

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    Mechanical engineer? You must be familiar with wrenching.

    Why not by a 2016-18 wreck? By it for 12-25k, rebuild it for another 3-5k.

    Refinance it and earn 2.5 in an Alloy CD?

    I've been rebuilding my trucks for the last 25 years. I haven't had payments in over 25 years.

    No one is going to be impressed with your brand new truck but you. New trucks are just huge money losses.
     
    Joe23 likes this.
  5. May 13, 2018 at 2:58 PM
    #65
    Spare Parts

    Spare Parts Well-Known Member

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    If you buy property when starting out of college, I would buy multi family, condo or apartment type property.

    You should buy reliable transportation to get to and from work, and a used taco would fit the bill nicely. Unless you plan to save enough cash to pay for a house outright, it's worth considering a loan to help establish credit and build your score, which should help secure a better rate when the time comes to purchase a house.

    If the deal works out to be better on a new taco than what you can get fo r a used, then yes do it. Buying a vehicle is a losing investment, but buying a taco decreases that loss in my mind.
     
  6. May 13, 2018 at 3:02 PM
    #66
    Woodrow F Call

    Woodrow F Call Kindling crackles and the smoke curls up...

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    That works if you have the time/money/place to do it.
     
    hiPSI likes this.
  7. May 13, 2018 at 3:08 PM
    #67
    RocTaco

    RocTaco Free stun!

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    Yeah don't buy a house just to buy a house. If you move to a different state it'd be pretty tough to play landlord, and transaction costs can take a lot of money out of your pocket it you buy and sell in a short period of time. Real estate is a better investment when you live there for a while.
     
  8. May 13, 2018 at 3:11 PM
    #68
    Topanga Taco

    Topanga Taco BUZZING NITRO

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    Stay focused in that final year, and start making contacts in your future endeavor if you have not already. The last quarter/semester is always the toughest. That gate is ready to drop and one's itchin' to go.

    I remember when I was young, and having that mentality of let's party now and worry about it later. A year out of college, the trip to Europe in the summer of '91 changed me A LOT. Particularly seeing Fugazi over there. It was a different vibe than the Hollywood Palladium. It's as if years of partying in the L.A. nightlife and meandering days came to a crescendo that summer. Soon thereafter I was on it and being an "adult" and super glad I didn't wait till I was older.

    https://www.youtube.com/watch?v=SGJFWirQ3ks
     
  9. May 13, 2018 at 3:14 PM
    #69
    bacollier90

    bacollier90 Well-Known Member

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    Do it. You’ve earned it. Pay it off ASAP. Assuming you have no kids or other responsibilities, now is the time to do it before those come along.

    Tacoma is as close to an investment as a vehicle can get so if something were to change with your situation, youd be able to get out of it for little to nothing.
     
    DubfromGA likes this.
  10. May 13, 2018 at 3:16 PM
    #70
    dd564

    dd564 Sour Grapes Guy

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    This question is largely based on if you have a GF or wife yet.

    If you don't buy something nice like a new truck so you can get a new GF.
    It will be tougher to land a decent woman if you are being mister tight-wad with your wallet.
    You already have a good head on your shoulders so buying a truck that will last you 15 years is a sound decision.

    For those who are saying "Buy used (for almost the same price), or "hold off" aren't trying to land a future wife like you might be..

    Buying cars is never wise financial advice, but if you are going to do it, do it right. Buy what you want so you only buy once every 10 years rather than buy something you don't like as much and you end up buying every 2-3 years.
     
    koditten likes this.
  11. May 13, 2018 at 3:17 PM
    #71
    dd564

    dd564 Sour Grapes Guy

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    Oh, and buy the cheapest 3 BR house you can get your hands on within commuting distance of your job.
    After you are ready to upsize, rent that baby out!
     
  12. May 13, 2018 at 3:19 PM
    #72
    dd564

    dd564 Sour Grapes Guy

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    You can get a new access cab for just slightly more than that with zero miles.
    That will provide you an additional 5-6 years use of usage by buying new, and you know how well it's been taken care of.
    Buying used might be one of the bigger rip-offs there can be because you end up buying vehicles more frequently.
     
  13. May 13, 2018 at 3:26 PM
    #73
    jake72

    jake72 Well-Known Member

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    Buy the new Tacoma you want, they hardly deprecate. If you find it’s a mistake after 2 years you can unload it for close to what you paid for it.
     
  14. May 13, 2018 at 3:49 PM
    #74
    koditten

    koditten Well-Known Member

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    I know the OP has 2 out of the 3. As for a place to do the work, I don't find that is as big as a hurdle as most think. Most people that rebuild cars do not do every bit of the work and don't actually need a shop.

    For example, any frame work will take place at a frame shop. Same goes for paint work.

    90% of rebuilding a car will involve hand tools that you use in the drive.

    If his rental has a garage included then he has just about everything he needs to rebuild a vehicle.

    I agree, it is very satisfying having the means to buy a new vehicle. It is also very satisfying to have a new(er) vehicle that is paid for and you built in into a safe and reliable vehicle. At least it is for me.

    If this OP wants a new truck and has checked all the boxes involving savings, then, by all means get the truck you want. I'd finance it and use that down payment money to invest for the future.

    Good topic.
     
  15. May 13, 2018 at 4:14 PM
    #75
    offthewallsurfer

    offthewallsurfer Well-Known Member

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    Here's my take short and sweet:

    Life is too short, fuck it and buy what you want. Dont over think it, you seem like a smart dude. Get it and enjoy your life.
     
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  16. May 13, 2018 at 4:25 PM
    #76
    Joe23

    Joe23 Canuckistikian

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    My girlfriend's mom is big in finances and this was exactly what she said to me about not buying new. Then when I told her how the used taco market was she understood why I bought new.





    For @BakingEggs
    Your 22, you shouldn't already be buying your dream truck yet. I'd go with something else until you're more stable in a career etc. Even with your finances being the way they are. I'm about 5 years older and honestly I wish I was smarter with my money at you're age. I was making great money for my age hell even now I do, anywhere from 80-95k a year.

    But I wish I didn't waste so much on cars before. Even though I still spend a lot I'm also saving just as much. Consider a house or something.

    Personally I think renting is a bit of a waste because you'll be spending but never get anything back vs a house is a bit of an investment.
    But I'm also in Toronto where it's next to impossible to find a house for under 800k now days even if you go 1.5 hours out of the city still 600k.
    That said 5 years ago I could've got a house for 600k they would've been that 800k now. The market is crazy here though and I wish I got into it before. Now it's almost impossible for single income even with what I make.

    Fuck if you're in the right area just invest in properties. I'm trying to buy condos here just to rent because even the rental market is insane at $1800+ a month for a 600 sq ft condo. Many can't buy because they spend so much on rent they can't save for a down payment.

    Then in two years you'll have plenty to buy a truck from the money you earn on property
     
    Last edited: May 13, 2018
  17. May 13, 2018 at 4:31 PM
    #77
    Loudog504

    Loudog504 Well-Known Member

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    I'd say get what you want or save to get what you want. Your financial position is probably better than most who own a Tacoma lol.

    In the long run not getting what you want just ends up costing you money when you trade in for what you do want down the road.
     
    Joe23 likes this.
  18. May 13, 2018 at 5:16 PM
    #78
    Wallbright

    Wallbright Well-Known Member

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    I wouldn't be afraid to buy a Tacoma new. I bought mine for $25,000 new in 12/16 and it's KBB right now is still a little over that. They hold their value insanely well.
     
  19. May 13, 2018 at 6:54 PM
    #79
    Barcared

    Barcared Well-Known Member

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    Been there done that. Put that 18k on a house.
     
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  20. May 13, 2018 at 7:55 PM
    #80
    Pavo

    Pavo Well-Known Member

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    Congrats on saving 30k while in college. Most American families dont even have 1k in savings (or so the media says).

    $500 for rent is pretty cheap, is that an apartment or a room in someone's house. Here in SoCal you can't even rent a room in someone's house for $500.

    Ask yourself if you see yourself living in your current state for long term. I know a lot of guys here reccomend a house and a house definitely is a good investment. I know in some states, especially where rent/home prices are cheap, housing prices don't really go up at all, however interest rates are going up.

    I was talking to my realtor buddy and he thinks the market here is going to level off soon and prices will drop (enough people are frustrated or unable/unwilling to pay 600k for a two bedroom condo).

    I myself am kicking myself for not buying a house sooner years ago when the market tanked so I'm waiting patiently for the market to crash again (it will maybe not as drastic) or I'll move to another state.

    But back to the op, sounds like you live in a state where the market is reasonable so maybe get an investment property, rent that out to pay your mortgage and get your dream truck. Win win
     

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