What is your payment?

I agree. Debt is a four letter word. At least with a Tacoma you can count on getting a solid return on it when it is time for something new. I am seeing other 2002 Tacomas like own on Craigslist for $12k and sometimes more.

 

We bought our first car on time as we had not started working and went through our credit Union. We then manage a car savings investment account and save until we can afford cash when the account comes due. If we can find a loan that has less interest then what we receive in the account, we consider buying on time. But only then and we can always pay off the loan at anytime should the need arise. Zero percent loans are really a no brainier. Otherwise, we always pay cash and aren't in the business of making loan institutions richer then necessary. If the finances don't work, we just keep milking the old car along. If investments are doing well, usually during non Republican administrations, we "treat" our selves to a new car, even when we don't need one.

With all due respect, I am shocked by the number of people buying new 2016 Tacos sight unseen and trying to manage trade ins and high monthly payments on a truck they have never driven while turning in trucks that are still in good working order...

 

Yeah. Seeing people with 500.00+ payments. Holy shit

 

wise man

 

I don't quite understand why one who has the ability to afford a $1,000 / mo note, wouldn't just save for 36 months, and go pay cash?

 

They'll give you that even if you don't finance through them.

 

Not according to the "rules". It is specifically handled through TFS and not part of your negotiated "deal". My dealer reiterated that portion. It is possible some are offering it outside of TFS.

 

You could just pay off the loan on your truck now. I love low interest rate loans if you can control yourself and how much you borrow.

 

i could pay it off today, i just dont want to go below a certain level in my savings.

 

I paid about 400ish if remember correctly it was supppose to be for 60 months.
Now I don't pay crap thank god free of payments except for Morgage.

 

Finance for as long as you can. Assuming there isn't an early payoff penalty then make the payments that work best for you. The longest loan term will allow for a cushion if something comes up during your time paying off the truck.

 

$27k down (includes sale of current vehicle) $12500 loan through credit union for 66mnths at 1.99% interest.
Payments are about $200 month. Insurance comes out to be about $71 month. Blue Limited w/Tow, Tonn, Mud Flaps, Door sill protectors and mats. OTD $38450. Adding AMP Power Boards for $1300, 3d Kagu floor mats, $87. That exhausts the budget for now.

 

I'm not rich, but if I can't pay cash for a vehicle, then in my mind I can't afford it. The 2016 Tacoma I've ordered is only the second time I've bought a new vehicle in my life, and I'm not too young.

 

I have always gotten longer term loans and paid them off early via my work bonus at work. Probably had more then 10 loans through my credit union so I know they don't jerk me around.

 

Just seen this for 3rd gens

 

Because why wait? It costs $500 to borrow $30k if I can pay it off in 2 years. $500 to have a new truck 24 months in advance and build my credit for a future house payment... worth it to me. What I don't get is why someone would take a loan and make small payments... you end up paying thousands for the loan itself that way. $30k over 6 years costs $1600.

You say wait 3 years and save up to pay cash? Same could be said for any loan for any length... you end up paying more than the whole in the end so if you can make the payments you could have saved and paid cash. The whole point of a loan is to NOT wait. To each their own though. I am all about avoiding debt but when you do the math, if you get a loan and pay it off quick you don't come out too bad.

 

http://www.toyota.com/content/ebrochure/college-grad.pdf

The fine print says TFS... But maybe it can be a way to leverage a discount... Hmm.

I mean what type of salesman has the time to read the fine print lol

They probably only know this if they've done a sales this way.

 

Here is one reason.
I have the cash from the sale of my 15 and my bike.....I intended to pay cash (and still might) but 1.5% money is hard to pass by. in 30 months when it's paid off interest rates will be higher, My monthly cost in interest starts at $30 and decreases. The other $907 is principle.

So its costing $30 a month to allow $34K to work for me. A few months ago when the market was topping I would and did pay cash for my 15 and the MX5 from profits. But with firesale prices being had on some companies I would rather have the cash now to reinvest in some of them.Its almost 2008 all over again. There are bargains out there and fuel will not stay a $1.70. Dividend Yields are getting juicy again

I am normally a no debt Dave Ramsey kind of guy. We have no debt at all except for a $300 lease on the wife's CRV and a safe income that can absorb a $1000 payment without hardship..But I HATE payments of any kind and may pay it off sooner unless I invest the money.

So in my case I don't need to use the cash to pay the loan and can take advantage of a falling market to buy some companies at firesale prices and take advantage of large yields in companies that won't be going out of business like a Verizon.

I am taking a 30 month loan. 36 would be my max for any Car loan. What I don't understand are those who arrange SEVEN year car payments.... These 72 month loans are crazy.My whole life has been if I cannot pay it off in 36 months or less, I cannot afford it.

So this is one reason some don't pay cash

.

 

I understand, but to be ABLE to afford a $1,000 note, means more than likely, that individual could save more than that, and maybe wait a year. Or less.

By no means am I personally able to do this, but if I could, I would. Especially for a 2016 Tacoma...I would simply wait for 2017 or 2018, pay cash after most of the bugs have been worked out, and start saving for the next purchase.

That $500 spent to borrow the money would look really nice in my investment accounts....

 

I had the college grad rebate it's only through TFS and the length has to be 60MO or less.