Loan or No Loan

I am 18 and I want a Toyota Tundra, But I only have about 5,000 I can spend. I have been searching for a couple of months and every single 5,000 dollar tundra with decent miles is gone in under 12 hours and I haven't seen any more that cheap in like 2 weeks (searching on craigslist) if I get one at a dealer one with decent miles it is around 8,000, the cheaper ones at dealers (5k or 6k) are in the 250s.
should I get one for 8,000 and get a loan or buy one with cray high miles for like 5 or 6 thousand

 

First thing you should do is become a member of a credit union. You can get an auto loan through them at a lower interest rate than using whoever the dealer uses for financing. Put the five thousand down and finance the rest. Even if you don’t decide to get a loan, become a member of a local credit union. Best move you can make with your money.

 

Save your money and drive a beater. I'm 28 with a very well paying job and I've been pushing a beater since I was 18. Long term it'll help you trust me. Then you can throw an absurd amount of money at a truck you REALLY want in the future instead of settling for something that you don't like everything about it.

 

How are your wrenchin abilities?

You are not getting much for 5k. You could buy a wreck and rebuild it.

It's how I started 25 years ago. I still won't buy a straight truck. Always wrecks. its fun.

 

I agree with you man but my dads wanting me to get a 2000 tundra that's 7500 and I want a 5000 dollar tacoma single cab and he keeps giving me crap for it

 

Is your dad paying for it? Then don't lol. I'm all for being young and driving a sick car/truck if you can afford it...but knowing what I know now with me and how my friends came up...I'm in a much better situation than them. They spent silly amounts of money on vehicles and mods at a young age now they're almost 30 and don't own a home and are driving the same "cool" cars they were driving when they were 18. Just my two cents. Always your decision tho

 

2000 Tundras had poor transmissions. they upgraded them in 2004. Think hard about buying that truck. Can you afford a $3k transmission? Used units are rare.

 

you're right I should stay out of debt I just read rich dad poor dad a couple months ago and I'm already about to go against it lol

 

my wrenching sucks but I have a uncle who's a mechanic and a grandpa that worked in a gm factory so I might be genetically gifted lol

 

Yeah man just save your money. It's cool for now, then in 10 years your friends will still be driving the same quality of car and you'll be driving something way ahead of your time with a house and some nice toys (from experience haha).

 

Most poor decisions are made out of impulse or impatience.

I mean, hey, you got 5 grand! That's a good thing, if you don't let it burn a hole in your pocket.

T-A-K-E Y-O-U-R T-I-M-E. If you do, the right rig will come along, and you will know it.

P.S. I think it is smart to be familiarizing yourself with what vehicles that are in your target range of miles/years are going for in your area. It's always good to know what a good price is ...

P.P.S. Look for a vehicle that has had ONE OWNER. [You're looking for an old guy who is selling his well maintained rig.]

 

there's this 2003 or 2004 tacoma I was thinking about getting. I know the lady that owns it personally and she works with my mom she never uses it and would probably give it to me for like 1000, its low milage and in decent shape butttt she says its pretty rusty under there I'm aware they all had that problem or lots of them at least, if its not too bad I will probably just get that one

 

Yeah, you got it figured out, Dude.

You sound smarter than I was at your age.

 

Lots of great advice here like usual, my 2 cents would be not to rush into anything. Lots of good trucks out there, don't settle, especially when it comes to rusty frames. Good luck.

 

Tacoma’s certain years has frame recalls

Maybe just maybe if it’s never been touched you can get a free frame

I hope others more knowledgeable on the subject will chime in

 

With interest rates being what they are, you’d be better off on the long run by financing the entire amount and putting that $5k into some kind of investment.

 

$5k cash is more than a lot of folks have to spend on a car. You should be able to get a nice older dependable vehicle without going into debt.

Not knowing your aspirations, no / low dept will allow you to work less at your age and pursue an education or trade school. An education will increase your earning potential for those more expensive vehicles in the future.

Good Luck!

 

Be willing to go farther for the right truck. They are out there.

 

I hope its still good I could always try to see, I did a little research and after 12 years since it was first purchased usually they won't replace the Frame

 

What state are you in?

 

ohio

 

Ah dang the rust belt i see your point.

If your budget is 5k, buy a 4k truck and have a small bank left over incase it needs a repair. You would never buy a brand new 3k transmission on a 4-5k truck. If course any older truck may have an issue, fact of life

 

This ^^^. Also a step farther, I would go get qualified for a 15k loan (you dont have to spend all of it). Keep looking and be patient. And pull the trigger on some thing thats a good deal. Credit unions can have good intrest rates and the amount of intrest you pay, will pay dividends on your credit going into your 20s. Always make a higher payment...Pay less intrest and still have the revolving credit.

All the money I threw at repairs when i was younger, could have just made the payment...That just how i would do it in your situation.

 

I would wait for that sweet one owner. Patience wasn't my strong suit at 18 either but deals come around all the time. One thing I would be aware of is the timing belt maintenance, its critical on 1st gen Tundras. I've heard of people going 200k without a belt change but that's really, really pushing it. If the seller can't prove the belt job was done you're going to end up with a thousand dollar belt job dropped in your lap or worse, a blown engine. There's tons of 4.7's out there with neglected belt maintenance, be careful

 

If it were my kids, I think I'd direct them in this direction. Get a small loan for a better vehicle and place that 5k into a saving account for future repairs. If you spend all 5k on a vehicle its not going to be dependable and you're going to have no money left for repairs.

 

that's true it would suck being stuck with a truck that won't work no money to fix it

 

Yeah, cost of owning the truck is an important calculus when you are cash poor [young and without a very large bank account].

The real issue is not how much money you have on hand: it's exactly how much do you have to pay to get a vehicle in good condition that will last for a while until you are in a better financial position.

People keep telling you to be patient.

Yeah, if you can get a cheap truck that is in good condition, great. Everybody wants that: kind of a rarity buying Toyota, however.

I am in the camp of 'pay as much as you have to' to get a vehicle in good, mechanical condition.

FWIW, I couldn't just do what my Dad did and get things to work. Listen to him and to others, but think for yourself, be patient, and make a good decision. NO ONE CAN DO THAT BUT YOU. If your patient, you'll make a good decision for you.

Lots of good things to think about here from these forum members.

 

I love this.

 

You’re a smart kid. If you can get the $1000 Tacoma I would strongly suggest going with that. Try your best to get the frame repaired or (maybe like my friend) get lucky and Toyota will buy the truck back from you. If nothing happens with the frame, oh well, just drive it conservatively and it should treat you fine for a couple years. Do you own routine frame inspections and if it gets really bad ... well you’re only 1k into it and you could probably part out the engine and tranny for that and make a couple bucks. Just my $.02 but I’d suggest staying away from loans if possible. It creates a false sense of wealth... as do credit cards.

 

A cheap tacoma will drive fine for Quite a while with a few rust holes...

Isis uses them they are so tough