How long did you finance for?

Financed $30,000 for 60mo @ 2.74%. Will finish paying it off at ~24mo though.

 

Is 90 months really a thing??? That I’ve never seen????? I’ve seen Chevy doing 84 for quite a while now, figure someone would be upside down on that vehicle for 83 of the 84 months. At least with a long term Toyota’s hold value. Yikes.

 

I’m at 60 at 2.99 through PenFed.

 

I leased this truck for 39 month/39K miles. I did $27K down and 2.29% for 72 on my 2020 Raptor, but I paid it off in a month. If I was buying the Tacoma I would’ve put down $15-20K and financed the remainder 60 or 72 months at around 2%. I usually accelerate the payments, my last two loans before the Raptor made it to 14 and 19 months.

I understand that some people need a good vehicle and need to go 84 months, I don’t like paying that much interest but some people have other financial priorities. I don’t think 72 or 84 months is the end of the world if they keep the truck long enough to pay it off. If they are doing 84 months and trading frequently without paying the negative equity that is foolish.

 

December 2018 bought a leftover 2018 financed for 60 months @ 2%, but paid it off in 10 months if I recall.

I don't care what the cost of money is, I had no intentions of running the entire 60 months. I took it for comfort. I hate debt, debt sucks the borrower is slave to the lender.

I try to live my life if that it all came crashing down tomorrow that i'm not dependent on people or the government to save my ass.

I realize this rubs some people the wrong way.

 

Completely disagree. Your home and vehicles are likely the biggest purchase we’ll make. Financing opens a lot of options.

With that said, I paid cash for my 2014 JK and having no payment is nice but not mandatory

 

This. Not everyone has cash falling out of their ass. But, quite a few can afford the payment for 72 months or whatever it is some ofmyou think is nuts. Not everyone seems to be living on the same planet, or, live in a bubble.
I was thinking about people needing a work truck, even a bad model of a full size work truck is expensive.

I had a hard time buying the Tacoma, not because I don't have the scratch, bit because last time I bought a vehicle in 2006, it was almost HALF the cost. My Xterra brand new was 21k out the door, but that was forever ago.

 

Anything less than 2% is basically free money. You can invest the net and earn the gains on it and come out green. If I got 0.99% for 84 hell id do that for 96!

but car loans are unlike home loans in that even the best on the market, the Tacoma, is a depreciating asset. Not an investment.

72 5.5%. Paid off in 6 months. Not claiming I’m not dumb - I’ve made far better financial decisions and few worse. Could have been worse, at least it was a Tacoma and not a muscle car etc. and I’ve wanted one for years etc etc.

I also bought a 2020 in dec 2019, so really not the smartest thing I’ve ever done.

 

Point #1 - Don't drive it off the dealer's lot upside-down.
Point #2 - Keep up or ahead on the payments so you're never upside-down.
Point #3 - If ya can't pay it off in less than 48 months, don't buy.
I put down $11K, financed $30K for 48 months at 2.49%. It'll be paid off in 24 months assuming no catastrophic events.
Could have paid cash but the homestead needs some serious investment.
AT 70 yo I don't want the bride saddled with the debt if I kick off before her.

 

This is a fair position to take and for cars its the right way to think for most people in most cases. That being said, borrowing money is so insanely cheap these days it's hard to ignore what can and is statistically likely to happen if excess capital is invested instead of used to pay off debt.

 

FIVE YEARS

SIXTY MONTHS

 

Wow, I know there’s plenty of people that make more money than I do, but I have a very good job, I can’t imagine paying cash for a 40k vehicle without a thought, people that pay straight cash do you fully fund your retirement accounts too? I prioritize some savings and maximizing all retirement accounts for both my wife and I, if I didn’t do that I could 100% pay cash but not so much with 401k and IRA’s. 401k limit is $19500 per person, and if you do a Roth 401k you’ll never EVER pay tax on all the money you earn. I must be a poor but there’s no way for me to do that and drop 40k on a vehicle too. Bottom line everyone makes there own financial decisions. But I’m envious of those who can drop cash on a vehicle like that, I’ll get their someday I hope.

 

Did 72 to give myself flexibility in case I encounter hard times. At my current rate it should be paid off early

 

Nonsense. I’ll make payments at 2.9% while earning 7-12% on the money that could pay it off.

 

You pay taxes on roth contributions up front. The only thing that's tax free is earnings and they can't be pulled until retirement age.

 

i financed mine for 60 mos at 2.7%. i see like this: if i have 50k in cash in the bank, why would I liquidate practically all of my cash just so i dont have a truck payment? id rather have some cheese available in the bank if anything were to ever happen. i have a good job, so a truck payment isnt going to hurt me. i used my 2014 F-150 (which was paid off) as my down payment and financed the rest.

 

60 months, paid off 2.5 years early.

 

Very impressive! As you say, to each their own.

 

That's fair. For some, that feeling is worth the opportunity cost no matter how substantial it is.

 

Principal won’t be much on 84 mo loan depending on your rate.