Is buying a new 2023 TRD OR in this economy smart?

People have been saying that for years, even when rates were 2-3% people were still saying it was a bad time to buy. Not if youre in the right financial position.

 

True if you are taking out a mortgage. Paying cash, you could make some arguments the other way. That is to say cash has some inherent value over borrowed money. Loans are cheap if you don't need them. If I were OP, I'd aim for <4% auto loan, hold the truck cash, and hopefully find a way to put cash down on a house when it seems right. The real money speaks more in a home purchase.

 

Words of wisdom from my wife when we were in your exact situation, sitting there in our mid to late twenties: "Well, I don't want to look up 5 years from now with maybe a kid or two and a house, and wish we had gone ahead and pulled the trigger on that truck so we could go on all of our adventures while we're still young and don't have any responsibilities". Soon after, we took money out of our mortgage down payment fund and bought a 3 year old 2015 DCLB 4x4 Tacoma with 37k miles and a camper shell on the back, built a bed system in the back to camp out of, and have never looked back, and most definitely have never regretted the purchase. We've since been offroading, mt biking, backpacking, camping, and hiking all over a handful of different states.

Some people only save for retirement, some live paycheck to paycheck, we're determined to spend enough to live life now, but also be smart about saving for the future.

Up to you, but i'd say get it, mod it, and live it up.

 

yup. i bought just as the financial crash was starting... if i had waited a couple of years, i would have saved a ton... but whatever... i now own it outright and it's worth a bit more than i paid and i avoided living in an apartment for several more years

 

Paying cash but potentially losing value in the home shortly after isn't really a smart decision.

If you look at the market, cash purchase percentage has dropped quite a bit in the last few months. House prices are simply too high, even for cash buyers.

 

This depends a lot on location and who you are competing with in the market. The varied responses here probably vary a lot based on where people live. OP is in New England, not sure how competitive the mkt is there.

That said, there is more good financial perspective in this thread than I ever got by say age 40. Interesting to see the varied responses to see how the country is feeling.

 

My PDR guy always has lease returns at his shop. Says it’s big $$$. Most cars need at least 1000 bucks work.

I doubt the dealers are eating the cost.

 

Hahaahahaha my favorite comment yet, IM GETTING THE DAMN TRUCK

 

Big dents maybe, but most small dings you don't get charged for. most used cars with 50k on them have a few dings a scratches even CPO.

And the dealer doesn't eat the cost. The leasing company owns the truck, not the dealer.

In most cases, especially with Toyota, the dealer wont make a big deal about a few dings and scratches when buying from the leasing company because they are already getting the vehicle for way under market value.

 

No home yet, here in New England prices are still outrageous. My initial thought was saving for a home but it really is out of reach on 1 income right now. After the truck my plan is to save everything for that. 3-4 years down the line hopefully.

 

Might even have mortgage rates down a couple percent by then.

 

That's kinda the hope, with prices so insanely high, and the rates around 8% you could buy a shack in New England for $500k. I don't want that right now, figured I get the truck now, I'll be ready in 3-4 years and hopefully by then the market makes more sense

 

Home prices always go up.

hmm i might have a lot of people disagree with me but you should secure the castle first. Have youre own place to shit, sleep, and shower. Then get the dream truck later. The truck is always gonna be there.

 

You are in your 20's. I assume unmarried and without a home mortgage. You have your whole life to be responsible. You are in your 20's and by yourself only once. Buy the truck. When you are saddled with mortgage, marriage and kids you'll be damn glad you did.

 

Congrats on having this "problem". I would guess a large percentage of people have never been in your shoes. I have never met you, but am sure you will be fine...you think before you act. The guys handing house keys back to the bank in the last downturn didn't do that.

(I will tell you I'm pulling for the truck cash just because it would be cool as a young guy to achieve a goal and not owe anyone...but you have received plenty of advice and you will figure it out).

Add Raptor lights and I take back every nice thing I just said about you!

 

Dealers don’t own the lease return, the leasing company does. Anecdotal evidence….

 

Maybe not "in all conditions" a bad decision. Sometimes market conditions are unfortunate, but for some it is necessary-enough.

 

They buy them from the leasing company and sell them as CPO.

 

If the dealer wants to fix those dents (btw, they pay a lot less for PDR than we do) then let them have at it, but they ain't going to complain when you turn in the car with minor dents/dings.

 

Never hurts to be finance cautious. I feel like paying it off entirely from the start seems like a solid decision. Especially if your gonna keep it a long time . I’ve done that with most of my rigs over the years. My most recent Tacoma purchase is the only one in 15 years that I’ve financed, but I did put a lot down to lower my payments. It matters how stable the economy is, how stable your job is, and how much you actually have saved. Obviously I wouldn’t spend a whole “Nest Egg” , but if you can just buy it flat out to save yourself from 5-6 years of interest, that’s golden! Whatever you do , do it with joy and thought because I myself don’t regret my decision, I’m loving my TRD Off-road and it’s no hassle reliability… Good luck brother