What is your monthly payment? Please read.

Buy less than you want, but a reliable item that you need. If you 'need' a truck, buy one. If you don't don't. Don't fall for the instant gratification have it today you only live once schelp.

Debt is the enemy. Never succumb. Avoid it every chance you get. When you are just a little older, you'll be glad you did.

What we pay is meaningless, because what you pay will be based on a whole 'nuther set of circumstances.

 

Lots of good advice on here guys. It's nice to see TW chiming in on giving advice not only on trucks but about personal finances too. lol.

But back to the topic...

29 years old here, about to turn 30.

0 down. Leasing my 17' TRD SPORT 4v4 ACLB at 530 / month for 3 years.

I use my company to lease it so it's a tax write off as well.

I feel like I'm still (relatively) young but I have been through my own share of vehicles. I think the most useful thing I have learned is to never buy new. Let someone else do it, eat the depreciation, and snap it up from them. lol.

Good luck buddy.

 

That's kinda where I'm at, I can get a good rate, great credit and a decent chunk of change. So I could, but if I do it will be a long 5 years. I think I'm better off waiting it out on this one . Thanks
for the response

 

Financing a new vehicle in your position will not be a smart financial move. Go to http://reddit.com/r/personalfinance and spend a few weeks lurking and reading.

 

For sure, if the truck is in good shape doesn't matter where it comes from

 

Im all but a year or two older than you, and I must say a car payment is a really bad idea right now. All that money can be put into a retirement account or as others have said towards a down payment on a home. The worse thing to do when your our age is get caught up in a game of loans. Jobs change, people move, etc.

Instead of a car payment, put some aside for later life and some aside for repairs or whatever; if you really need a newer truck get something used, I still drive the truck i was lucky enough to be gifted back in highschool and extra money goes to upgrades when i can afford it, not upgrade and then figure how can i pay for it

 

Thanks man, that hit home. Used is new to me haha I drive a 91! I will keep you posted in the time coming. Used is the way to go for me

 

Thanks man, going to save and work hard

 

my retirement account is the state as i am a government employee, eligible to retire with a pension when i am 51! plus from my monthly pay, 400 goes into savings

 

i bought my wife a brand spanking new dodge durango r/t awd this past september for 47k!!! pricey but after a few months of making the 620 dollar payments, its worth it

 

Also true didn't think about that.

 

Don't forget insurance and other expenses. I'd guess insurance on a 91 truck is pretty cheap vs. a new truck. You won't have to make any repairs or anything for the first few years thanks to the Toyota care oil changes and stuff but at some point you will have to start spending some money out of pocket for service and maintenance/tires, etc. You might be fine with just putting the minimum amount of money into an older truck and doing work yourself (I would be) but if you have something new and you plan on keeping it for awhile some people insist on getting all the proper service done at the dealer and that isn't cheap once you're out of the Toyota care period. I'll get my truck soon but having a new car is a pain in the ass. Every little scratch and ding breaks your heart and if you're using a truck like a truck that will happen.

Ten years ago I was 25. I wanted a new 4Runner or Tacoma and almost bought one with a 6 year loan and $500 payments but I could get the Subaru I'm still driving for $150 a month payment and put hundreds of dollars a month into savings. Six months later during the great recession my boss walked into the office and said I'm either laying you off or cutting your pay to 75% of your current salary, your choice. Now I'm at the point in my life where I have enough money in my bank account I could drive over to the Toyota dealer and write a check for a new Tacoma or 4Runner but what if me or my wife gets fired next week? What happens if one of my kids gets sick and we blow thru our insurance HRA account and have to pay out of pocket, or the roof of my house needs replacement?

The flip side is what if you get cancer at age 25 and you only have 6 months to live. Would you rather have 3 years of car payments in the bank or the memories of the good times you had in your truck?

 

Personally I don't think any one method is good for all people. I grew up driving reliable used cars and most of my family did the same. I was raised to never buy new. When old car became unreliable I was tired of fixing things and started looking at Tacomas and due to the high resale I started looking at new ones.

My wife was completely against buying a new car. Especially one that cost 30k when we had never spent more than 5k. We were both in school working part time jobs during the school year and full time in the summer. We had a kid on the way too.

In the end we both agreed that a new truck would work for us. We financed the entire amount over 72 months at super low interest rate in 2013 and ended up with payments at just under $500/month. It was tough making the payments at first while we finished school but once I started full time and started my side business we paid extra and had the truck paid off in just over 2 years. It was the best decision we have ever made because we knew what we were getting in to and worked hard to make it work.

Bottom line is whatever you do, have a plan, understand the pros and cons and accept them as they come. Work hard and carry out the plan.

 

Very good advice. I will drive what I have to the ground and keep on fixing it my self

 

OP- if you do decide to get any vehicle, do not discuss the payment when buying, they will use this against you.

Now to answer your question. Took out a 25k loan, @1.8 % payments are 450ish, I put 600 a month into an online savings and pay the monthly payment from there. Normally I pay extra, but at 1.8% that extra money in a savings is better for me. I have 150 bucks a week going into that account.

My advice, take what you think would be a car payment 400 to 700 and make that payment to a savings account, use that money to keep your current truck going, until the expense of that isn't worth it. You live in New England, we are used to seeing old beaters on the road.

Good luck.

 

I think I put like $250 down.

 

Great post...

However, if you decide to finance, IMO, I wouldn't do it for over 24 months and would save until I could make at least a 50% down payment. Any bank or credit union will give you very favorable terms with this type of loan. Your equity will build very fast and you will never be "upside down" on your loan (unless you trash the vehicle in that 2 year period of time). And after 2 years you (if you are like me) will probably starting to get tired of your vehicle anyway and a 2 year old, paid off, vehicle would give you great leverage on your next trade.

 

I am 24 so I can definitely relate with you..
Just be smart with your money!! save save save

My truck was 38-39k after taxes and fees.
10k down payment. 2.45% interest. 488$ monthly over 60 months.

 

The need/want decision at your age is an interesting one for. I struggle daily with getting my 22 year old son to understand the difference between the two and to understand that while instant gratification is forced down our throats by marketing departments, it should not be the reality of most people because it gets them in trouble really quickly. My son wanted a truck as well but after looking at what was reasonable, he couldn't afford one (still wanted one though!). He tried to figure out how to make it work but with little savings and no guarantee on work, it would be taking a big risk to take on big payments. Also, with no real credit history, he couldn't finance without my help so he had a bit of a reality check. Getting a beater truck would have cost more in the long run and new wasn't an option. In the end, he settled on practical and bought a low mileage 2008 Ford Edge. Its dependable, very nice actually, and affordable. Once he saves enough to buy a truck outright, he will sell the Ford and get what he really wants. For now, it meets his need, just not his want.

Al that said, I think you got some great advice here already. Save up until you can get what you want and can afford. If having to make the payments causes any stress whatsoever, it detracts from the joy of owning a kick ass rig so do yourself a solid and wait until you can fully enjoy it without worry