How in debt are you with your Tacoma?

ZERO for the truck. When I drove it off the lot, it was 100% mine.

For parts/mods, etc, for consumer protection reasons, I use a credit card or PayPal, but never carry over a balance.

I am not rich, nor am I cheap. Frugal might be right term.

I've learned from my parents.

If I buy something. I save up and pay cash.

Has been working just fine since I was 8 years old.

 

That's smart. I realize that people do need a credit history in this economy (as sad as that is to say). If you use a credit card like a debit card, never carry a balance over and pay any interest, and reap the rewards (miles, cash back, whatever), then you're beating them at their own game.

 

I forgot about the miles and cash back rewards. And yes, I take full advantage of that. It's not a requirement (at least with my cards) to carry a balance to reap those rewards. The credit card companies bank on the fact that a majority of their CC holders will carryover a balance. I am not in that club.

 

It depends on the rate... But financing my 31k at 7 years with a 2.99 rate was a no brainer.

If I had 31k in cash, I might have financed a little less, but still most of it. But finding an investment with a(reasonably safe) 5-6% return wouldn't be tough. It's a net of 2-3%.

 

Except again every benefit card has it's costs to the card companies passed along to small merchants. The bigger the rewards the higher the processing fees go for small businesses. That's not beating the system, it's screwing it up even more. Not that it's the consumers fault necessarily, but if someone wanted to play the system they should use the rewards cards at box stores and cash at small businesses.

 

I cannot live 100% by his rules, but it has been a real eye opener for me. MMM FTW!

 

Not if your interest rate is 0% (toyota didn't offer it for Tacoma sadly). However even with 2% interest, one can devert available money to the retirement or even conservative stock account. Modest and conservative rate 6-10% in retirement return will net you with 4-8% ahead overall. Just MHO

 

I don't understand why some posters seem to have the attitude that they're better than the rest of us who financed our vehicles.

 

you are below them. duh

 

$0

 

Ssshhh quiet!

It's like tennis, we don't call it debt, we call it love.

 

The damage is done. What's the hurry ?
Maybe if you are paying some whacky interest rate and paying the loan off would save you thousands...

Otherwise, I would say "chill" and put that extra $650. in the bank for yourself.

Let 'em wait on their money while you fill your rainy day account.

 

i'll do the math tommorrow and tell you the savings.

my MO was to make my standard payment more often.. ie, if your payment is 450. pay 225 biweekly if that is your pay frame. or 112.5 weekly. it may not sound like a big deal, but it cuts payments off the back end and you never notice a change in your cash flow.

 

If you're gonna go the debt route, then yes that's a good way to minimize the interest damage simply due to the way they calculate interest payments.

 

This is a good way to add flexibility to your monthly budget.

If you do a car loan, then of course, get the lowest possible interest rate that you can. AND (this will sound crazy) the LONGEST loan payback length (I think 6 years is available nowadays.)

Then you can pay aggressively WHEN you can (increase payment frequency and/or increase payment amount) to reduce your loan length and total interest paid.

But in circumstances when you need more cash flow, then revert to the minimum contracted payment amount to get over the financial hump, then return back to an aggressive payment schedule.

You need to have enough financial discipline to return to your original aggressive payment plan.

I haven't done this on a car loan, but have been and continue to be aggressive on my mortgage payments. Thousands of dollars in interest will be saved in the back end.

 

Paid 22K CASH for truck...Mods I'm north of 40K CASH...Oh and truck is at Fab Shop getting more work done as I type... My wife says I'm addicted and I need counseling

 

18k worth of mods? My, my, my...I think I agree with your wife!

 

haha My wife and I wish it was only 18K in mods...Mods/fab alone is over 40K and growing