Finance plan or I don’t care?

I’ve had a couple of people tell me that you should never buy a new car unless you can pay cash. But on this last one I got 72 mos at 0%. Seems like I’m better served by taking the 0% and focusing free cash in other places.

 

My previous car was a '96 Honda that literally would have run forever, since I only drove it like 8k a year, but it got T-boned, hence it's my previous car not my current one.

I bought my Tundra and a motorcycle the same day from a friend, paid $18,500 for both, financed $16k. I got the truck for a good deal, as my friend had been in the process of trading it in for a Tesla that he was still waiting on to arrive, so when he heard I needed a vehicle, he offered the truck to me for what the Tesla dealer was going to give him. The bike was purely an impulse buy.

As for my preference, I would prefer to not have debt at all, but my wife and I had done the Dave Ramsey thing for years, driving one cash car after another, and we were not getting ahead, having to repair and replace them every year or two.

 

I financed about 33k out of 52k. The 0% apr is saving me about $3,600 in interest over the best rate my credit union could offer.

 

2018 SR5 TRD $20k down. Financed the rest through my work's credit union at 2%. $280/mo payment.

 

But what about my long dead father yelling at me from the grave. Wifes '16 and my '16 paid off. Feels better than a few more $ in my funds. I went through 1999 and 2007 where retirement fund and 401K lost 30% in a year.

 

i bought a 2014 long bed double cab. alt taxes and title for 36,00$ . i was able to get a 0 down, 0% interest for 3 year term. a 1,000$ monthly payment sucked but it was paid off in 3 years and i made interest on tje money. during that period

 

Worked my ass off to get my credit score up as high as I could. Took the same deal.

 

I bought my 19 Cavalry Blue about a month ago for 41K I had the option of 0% or 2,500 cash towards purchase. I took the 2500 and financed through my credit union for 1.9% I actually save a little money taking the higher interest. Put down a total of 13K and financed the rest. I couldn't be happier. This forum is great and I'm finding all the info on the mod's I want to do. I thought owning a Harley was expensive. I was wrong!

 

My credit score was 832 last I checked, and they would not offer the o% 72 months.. 1.9% at 60 Months or .9% for 48 Months.. I took the 60.. Not sure if the deal was credit score or location related.

 

I use mine in a company. I have a standing policy with vehicles that if you can't have it paid off in 4 years then you either need more down payment or less vehicle. I like a $500 payment. I never stop making it, but once the truck is paid off I put it in an account... Need tires? Need brakes? need repairs? Money is in the bank. Once I get to five years, I pull the truck out of the company and use it personally. I take the current personal vehicle and the $$$ out of the account and buy a new one. I borrow the difference. Last time it was $15k. 1.9% for 60mos. Cars are the most expensive things that we own. Nothing costs more and loses value like a truck. In the end I own a truck for 10 years. Playing stupid games with other people's money ends in disaster. Putting $10,000 of accessories on the bank's truck is stupid. Times are good right now and have been for a while, but remember to pack an umbrella... It's going to rain again.

 

I usually drive the wheels off of my stuff. 1980 HiLux...1992 Hilux both standard cabs. When the kids came along I needed something with a real back seat...However the kids eventually outgrew the back seat of my 2001 Tundra access cab in 2009, and not having any extra cash flow at the time I traded for a 2002 crew cab F350 pretty much strait up. Drove it a couple of years and eventually traded it in on a new 2011 Rock Warrior that I plan to drive the wheels off of...

 

Truth.

 

Same here. I was lucky enough to be able to pay cash for my new 2018 Tundra. Been debt-free for years (except the house/farm).

Dan

 

Great umbrella analogy. Like you, we are always prepared for winter. Pack that parachute, it’s coming.

 

Thanks for sharing all the great info everyone. Some good strategies out there...high FICO scores, minimal debt, plan for repairs, all are good ideas. Maybe something you have shared will positively help someone else reading!

Here is my three cents...when I was in my early 20’s, put myself thru college, ate cup o noodles daily, drove an $800 salvaged title Tercel (green) saved, saved, saved. When I turned 31 purchase my home outright and we own all our rigs, except the Tundra. Close to paying it off. Close to 0 debt again. Will be there in again soon.

 

Big believer in living in debt keeps you from wealth building. Hard not to with all the great builds on here, but there’s so much less stress when you do it with cash.

 

Pay cash.

Couple basic rules of life - don’t buy things you cant pay for. Live below your means.

The vast majority of tundra owners are like the vast majority of Americans, it’s part of our culture. Always in debt from “buying” things they want but can’t afford except by borrowing money.

Most people would spend way less if financing didn’t allow them to pay more.

most folks will disagree, and most folks are broke.

 

bought mine through my company and let them make the payments plus interest and depreciation is deductible!

 

I dropped $25K down on my 2019 also. Hope to have it paid off before the end of next year, but these damned mods keep happening...

 

Amen!

But seriously, several great points have been brought up by this question but I will hopefully raise one more.

Financing is not a horrible option as long as you remember where to apply the principle for the greatest value. For example, if you have a high interest loan on credit cards and you drop a large sum of money on even a used truck you have lost value from your money. The cost avoidance of paying off the higher interest loans would be worth financing the truck at a lower interest rate. Yes, it's not ideal but as I said earlier, everyone's circumstances are different. Put your debt in a spreadsheet, figure out which areas are costing you the most, and pay them off first.

Just my two cents. PAY CASH if you can!

 

I guess I forgot to mention that I only borrow money when I have the cash to back the note. It is not dumb to use debt when used properly. I have 5 rentals. 4 of them are paid off cash. They were junk houses that I gutted and remodeled better than new. The 5th one is a tri-plex with a loan. I put down enough money that one unit rented covers the mortgage. The redundancy of three units helps to make sure the property makes the payment and money. When fully occupied I mail two units' rent towards the mortgage. It will be paid off in 10 years. It will have made money with the bank's money. HOWEVER... Trucks are a liability, rentals are an asset. One makes money, one costs money. Other than my home, that tri-plex, and about $10k left on the tundra I have no debt. The hardest part right now is finding something worth investing in. All this "cheap money" has killed anyone who actually saves money. High interest yields wise decisions. Cheap and 0% interest enables idiots to dig holes of debt with a back hoe.

 

Cavalry.

 

Along these lines I once bought a new GMC (they had 0% with no rebate alternative) and I had them add 12k onto the loan and give me a dealer check for the 12k. I used it to pay off my mortgage and saved a few nickels.

Bear

 

I like your approach brosephine. Congrats!

 

In 2018 the average owner age purchasing a new Tundra was 54. The average annual income was $83,000. Also notes we are even more upscale than GMC Sierra owners. This group is “balling!”


Here is the link: https://www.google.com/amp/s/hedgescompany.com/blog/2018/10/pickup-truck-owner-demographics/amp/

 

0% for 72

 

What I see with the 0% = free money crew not bringing up is 0% is on new only, I saved 10k buying 1 year old truck. My credit union offers something like 2.9% on new and used. How long will the loan have to be before those #'s equal out?

 

My truck had 24 miles on it and still has the new car smell at 5k. I know it makes more sense to buy 1 year old, but I just like getting them brand new. Plus I always feel that you are buying someone else's problem when you buy a used car.

 

I put 0 down. 2% interest on a 6-year $44k loan. Have about 10k left. Payments are $670/month. The bank probably doesn't want to know what I did to their truck..

https://www.instagram.com/p/ByNfQeagJ64/?igshid=1vretxuyi572s

 

I'm agree, I love this place.

Life has been hectic lately and I haven't been on here as much as I would like.

Regarding finances. Aside from the house and student loans, if I can't pay cash for it, I can't afford it.

With that said, I'm not saying it is the best way, but it's the way I do it. I plan on keeping my truck for as long as it takes until I have enough saved for a new or newer one, if possible. It likely won't be for a long time though, haha.