Should I save or wait?

So I've been planning on getting a '16 or '17 Tundra Platinum or 1794 by the end of this year. My plan was to save money, sell my Outback privately (modded, could sell well), and then pay in cash for a used truck.

So it's far from the end of the year, and there is a '16 Tundra 1794 w TRD off-road package, one owner, no accidents, 18k miles for only $36,000. This sounds a great deal as a new Tundra w/ these options would be well over $50k.

Problem is I'm afraid to finance. I could trade my Subaru Outback in and get less value, but take an opportunity at this great deal to get the exact truck I want. If I sell my Outback now, I'll have to have something to drive, and buying would be more in a faster, pressured way.

My credit score is near 800, but wife is against financing. If i traded in, and put money down I would only need to finance $4,000-5,000. Would be unwise to finance given the shaky economy? I would hate to have my rate shoot up like crazy if something happens.

Please advise!

Thanks

 

It comes down to what you do for a living, the volatility of your pay, and your current debt load. I love the 1794 as much as the next guy, but a good old sr5 is the same driveline minus the fancy seats and blinked out interior. I could have paid cash for a new 2018 1794 crewmax. I financed 1/2 of a SR5 crew max at 0.9% for 60 months. Will I let the loan go for 5 years? NOPE! Will I hold my cash reserves for emergency and building capital? YEP!

 

I feel your dilema. I did not plan on paying cash but I did have a big down and wanted lower payments. I found the truck and financed an amount less than 10k and have no penalty if paid off early. I have a quad that will be paid off at the end of this year then I will add on to truck payment to pay down principal and be done early.

 

Checkmwith a credit union to see what fixed rate financing they're offering. Mine usually is much lower than a dealer. And recently, two of my credit cards keep offering me car and personal loans at fixed rates that are lower than my credit union. If you check with a bank, credit union, or credit card provider you already have, you can find out the rate they'll offer you without a hard credit inquiry, so no hit to your score. It might help your decision making, if you could anticipate what a loan will cost you.

 

Everyone is different and only you know about your situation. I don’t know if you have a better use of the cash, but assuming you aren’t paying off some other high interest loan, financing $5k on a $36k truck seems like minimal risk, and shouldn’t cost you much in interest.

The bigger question to me would be; is the truck exactly what you want? I paid $43k for a brand new truck in the exact configuration I wanted. I’d definitely regret paying $36k and feeling like I made compromises in the color or features I wanted! In fact, it would probably be worth a 20% premium to know I wasn’t buying a truck with some shady history or a previous terrible owner. Seems like a much higher risk than the financial risk of financing $5k.

So do you really want to pay $36k on a 3 year old used truck? I wouldn’t.

 

I have already checked with my bank and since a loan for that small amount is a "non-secured" loan, they gave me a crazy rate of 9-10% interest! That is twice the amount then say a dealer would offer.

I have not checked into a credit union though.

 

I don't want an '18+ because of the annoying safety issues. My ideal truck would be a 1794 with the TRD Off Road package, which is not easy to find around that price. The truck is 3 years old, but looks perfect, with clean car fax, with only 18k miles. I have never seen a deal like this before. Plus I would be trading in my car. Loan would be only $4-5k max. I could pay that off in two years.

The dealership is 7 hrs a way.

 

Also look for a no penalty early payment option, that could offset your higher interest rate. IMO

 

Like I said, everyone is different. Id be even less inclined to make a “too good to be true” deal with a dealer 7 hours away. Pretty easy for them to ignore you if it ends up going south.

 

Use an interest calculator to figure out how much interest you would pay. $5,000 at 10% for 60 months is like $1300 in total interest. That interest is spread out over the 60 months with the first year being the heaviest and the last year being the lightest. Use your money as a tool and figure out how much extra taking out a loan is worth to you.

 

I just bought last year's 2018 SR5 for 33,000$ out the door. But hey you gotta have priorities. I had to drive 25 miles to get it in a Blizzard. I personally feel our economy is headed to recession again.

 

What was the MSRP of your truck?

 

If i wanted a new 1794 and see if I can get a good deal. I'm guessing a dealer won't take a $50k truck and sell to me for $40? Then I'd have a brand new truck, for a bit more than that used one.

 

35,450.00. But it had been on the lot for so long it had water spots on the paint and glass. Easily removed by me. Good luck get the blue book prices and use that knowledge against them. Only Chevy and Ram discount their trucks 10,000$ because they can't give them away.

 

Instead of putting so much down and financing so little you could finance more with a lower interest rate auto loan that doesn't penalize you for paying it off early. Then make your payments and maybe pay it off by the end of the year like you originally intended.
Or finance the whole thing, sell your Outback privately and then pay off the Tundra.
There are always options, IF the truck is exactly what you want. Don't settle.

 

Here it is :
https://www.northbrooktoyota.com/used/Toyota/2016-Toyota-Tundra-9fdf7ffa0a0e0a6b0dfefdb8aac36123.htm

 

Be safe, sell the outback rent a car then start looking

 

This is probably the best advice. There will always be a good deal again. I should stick to my plan of saving up until the end of the year, and not worry about any financing.

 

I shot a lot of Prairie dogs in the Bridgeport and surrounding areas. I love that area of Nebraska but hated the bitter cold.
At the Cabela's on I-80 headquarters ,if you look north there is a colony of dogs right there visible without a scope! Lol

 

Jaybird,

I would buy certified used from a Toyota dealer. Or new.

If you have an 800 credit score than your golden.

I traded my 08 Tundra in and bought new with platinum Toyota warranty for extra piece of mind and financed for 2.8% plus Toyota has incentives and cash back.

If you really don’t want to finance than save and wait to buy. I would buy certified used through Toyota at least you can get a 100,000 mile warranty and peace of mind.

 

If you're set on a used one I'd wait and save, sell your car.

If you are considering a new one it's not dumb to finance at .9%. Since you have the cash, it can be invested elsewhere and earn you money. Assuming you buy new, borrowing 36k at .9% will only cost you 830 bucks over 5 years. Keeping 36k in savings at 1% interest over 5 years earns you twice that. As long as you have reliable income to make the payment. (In theory your invested cash could help make the payment). Sometimes dumping all your cash into a depreciating asset isn't the best route. Also, most of this only applies if you plan on keeping the truck for a while because depending on your down payment, you will be upside down on the truck for a little while.

Just my opinion. Everyone has different financial situations and opinions. Do what your comfortable with. Stressing over money sucks!

 

payments suck.
especially if one of you gets sick, injured or laid off.
buy mildly used ..let someone else take the 'new big hit' off the showroom.
always pay cash when you can.

 

I understand regarding financing. I didn't have a car/truck payment for 20 years when I bought my 2017 in December of 2016. But the "cost of the paper" was ridiculously low (and had been for most of the "crisis" I guess). I got 1.9% through Toyota's finance arm AND I got simple interest. So I decided to do it and finance a portion of the purchase. I don't like financing. I DO like very inexpensive financing.

And now the lawyer part: YMMV.

 

It doesn’t seem like they certified it? For that age and model, you’d think it was certified. Also, the service history is lacking. It would be nice to see it was at least serviced once for that mileage.

 

That's a good point. If it's not certified and something goes wrong, I'll have to fit the bill. My guess is the guy did his own maintenance or oil changes.

The thing is, at the end of the year I would be happy with a '19 Limited TRD Off-Road package, but the main need for a Platinum or 1794 is the folding mirrors. I will probably need that to park in my garage, otherwise I don't need all the luxury stuff that the top lines offer.

Now I did get a new '19 Sienna SE AWD at a local dealership in Omaha last year. Maybe I could try to see if they'd sell me a '19 Limited w/ TRD off road package for $40. I know they retail for about $46-47.

Of course getting a 1794 w/ TRD package is what I'd WANT ideally, but those go for over $50 new.

 

Here is the brand new equivalent. Under $50k, 1794 w/ Off Road Package.

https://www.villagepointetoyota.com...a-Tundra-356f2de00a0e0ae766ac3a5fc1a487aa.htm

 

Seems like a pretty good price. I was happy to be out the door on mine for 50k in NC. Mine’s not TRD, but I had another dealer at the same price for a TRD.

The folding mirrors is what pushed me to a 1794 as well.

 

I’d steer clear of that truck for the price and it isn’t certified, and you’d have to guess about past and whether or not the oil was ever changed. I got my 2017 Limited Off Road that stickered at $49k for $41,800 a few years ago. Considering a used Limited was $2500 cheaper, it is no brainer to get new. Especially with Toyota’s, it usually isn’t very cost effective to buy certified used when you can get a new one for almost the same - especially considering the lower interest rates typically offered for a new vehicle.

 

I wish I understood the credit system better, When I bought my truck my bank stated 2.9 percent. I took that to the dealer and the finance guy comes out and says how about 2.5. I know that's not much different but i said yes and bought my truck for 35.4 out the door. No warranty , no nothing.

 

This is the first indication of another Recession. Next is interest rates and a slowdown in housing sales.


https://amp.businessinsider.com/auto-loan-delinquency-number-record-new-york-fed-2019-2