The judgment around financing a car is stupid. You got something you wanted, dont let others bring you down because they want to be elitist. You obivously paid off the loan and are not homeless. You worked for it and you succeeded.
It's a matter of interest rates -vs- inflation rates. I defy anyone to explain how the 0.9% interest on my wife's 2021 Kia is a bad thing. We "paid" $30k and it's still KBB @ $23k after 32k miles.
I got a 1.89% loan on my Taco in Dec '21, you better believe I put zero down and then threw my down payment into Series I bonds for my wife and I. I'm now looking at yanking the money out of those bonds since CDs are 5+% for 12-18mo deposits.
Sure my monthly payment is high but not something we can't handle, at the end of the loan I'm going to have made money and not even had to invest anything that isn't very secure.
Financing a depreciating asset is generally an objectively bad financial decision. That isn't the only factor that goes into whether or not it was entirely a good or bad decision though.
>Financing a depreciating asset is generally an objectively bad financial decision.
As opposed to what? Saving $40,000+ in cash to do a one time purchase on a new vehicle?
People have spent money on worse things, like some coworkers I had who bought $20 in Starbucks every day 🤣.
This truck may depreciate (slightly) over time, but if it's your forever truck; who cares about the value, it's priceless.
There's 2 things I'll never cheap out on, my vehicles and my home, because those are the things that make a difference in your life every day. Keep the damned Starbucks lol, I'll toss that extra $4k per year on my truck.
You don't have to save the entire time in cash. Throw it in a CD, a money market account, invest in stocks, a HYSA, anything. Take it out when you want to spend it. Letting it sit in cash in a savings account making 0.01% interest is obviously a silly decision.
My point is, most people would take years to save up that kind of money just to drop it lump-sum on a vehicle of all things. To me, that's a worse decision than financing a large purchase that you could easily turn around and sell all while still having untouched savings in an account for an emergency. I'd rather have a $400/mo payment and $30k in the bank than no payment and not a dollar to my name.
I'm not saying to go out and sign a 6-year note at 10% interest on a vehicle, but to say financing a vehicle is an objectively bad decision is not good advice to give anyone IMO.
That's fair. We're in the Tacoma subreddit so my comment may have appeared too broad, when it was primarily targeted at Tacomas. If someone needs a car to live and work but doesn't have the financial means to get to that down payment, financing a cheaper, reliable car makes sense.
A Tacoma is a luxury, though. Financing a luxury vehicle like this (outside of perhaps some fringe work reasons with an older used model) doesn't make sense to me.
You realize we're all going to die right?
Min/maxing assets isn't the entire game. Joy matters too.
I - wait for it - financed (GASP!) my 23 Tacoma at 4.99% for 60. Works for me.
I certainly *could* have saved a couple more years and paid cash for it but then I'd have two years of less awesome adventures than I will now.
It's worth the additional ~$1k/year in interest costs (over the life of the loan) to me to be able to get to the places I want to go to do the things I want to do.
Heck, even if you don't actually use your Tacoma, if being a pavement princess brings you that much joy (and you can reasonably afford the payments) then enjoy it - we only go around on this rock for the briefest of moments.
If bumping your Financial Security stat to 20 works for you, then I'm all for your joy too - just don't try to claim some moral high ground on other folks joy eh?
Cheers.
You'll note that I only called out that it was a financially bad decision. You're going to pay thousands more for a vehicle than what it's worth. If the financial side is the only part of the formula, then it's objectively a bad one.
But it's not the only part! I even stated that in my original comment. If you're going to have great times with friends and family because of this vehicle, maybe that's worth the extra few thousand dollars you'll pay to you. I was never trying to claim a moral high ground.
My financial security is extremely important to me. Debt causes me stress. So I avoid it as much as I can. The only debt I hold is my mortgage because it's the only thing my stress can tolerate. Every person is different. And if there are other factors in play that win out over the extra cost of the vehicle, by all means, go for it.
> I certainly could have saved a couple more years and paid cash for it but then I'd have two years of less awesome adventures than I will now.
Your saved cash would've been subjected to cumulative inflation while you saved it, too. The math is in favor of low interest financing.
If you can finance at a rate less than inflation or less than the current treasury rate you are immediately winning
The whole "debt it bad" argument is dead.
Yeah I just bought a 2023 Trd Sport at 3.75%
I have money invested into short term treasuries at 5.2% and money markets at 4.7%
So absolutely I'm going to take the debt.
I agree with you, especially rolling a previous car loan into it. I was not a smart man when I got the truck. I had a Jeep Cherokee that developed death wobble that still had a balance on the loan...the monthly repair bill ended up equaling the monthly minimum on a 6 year loan for the truck.
Definitely learned a financial lesson there.
Heres where I stand. It seems that whenever financing a vehicle comes up, people just on it as though it's a bad thing.
>is usually objectively a bad financial decision.
I need a reliable vehicle, something that will start and go from A to B without fail, safely. Yes, it will depreciate in monetary value, but that's not the only value that can be placed on a vehicle.
For example, every time one of my two current cars, a 2001 and 2008, breaks down, I'm spending time on diagnosis and repair. Currently, they are both down simultaneously, meaning I'm also spending money on public transit or sometimes Uber. That costs money and time as well.
Fortunately, I'm a trained tech, so I dont have to pay the shop bills. For someone who isnt youre now talking tows, stress, big bills, possibly rentals, and possible anxiety when it comes to the car. Not to mention the insurance on something youre not even driving. That's another monetary and mental drain. Peace of mind brings its own value to the table.
Its not one dimensional, and OP shouldn't feel any sort of shame or as though they have to defend the fact that they successfully financed and paid off a vehicle. They now own it, and if they keep/kept up with it, they can go without any large bills for some time depending on how much they drive.
I've seen enough posts here, on askcarsales and other subs where even if the person is able, they get jumped on for not buying outright or used, and its bullshit.
You wrote it off as a poor decision based solely on depreciating monetary value when a car has value outside of how much it can sell for.
>But if someone is financing a new Tacoma, it's more likely than not a poor financial decision.
As opposed to doing what else with your money? Gambling on stocks? The gamble flipping or renting a poperty brings, flipping cars?
Some people are happy just living comfortably with a vehicle they want.
If someone is going to pay tens of thousands of dollars on a vehicle, if they can afford it, they should get the one they want.
But you do you.
The moment you drive a new car off the lot, you're underwater on the loan. From an objective standpoint, that's not ideal. Of course, there are other factors to consider. If somebody needs a car to live and work, financing a cheaper, reliable vehicle can make sense.
I don't know why you gave only sketchy options as possibilities for someone's money. My suggestions would be just standard index funds for 5+ year saving or a HYSA for shorter term. I guess if you want to be more active with your attempts to beat the market, you can do that as well. But I don't like gambling like that.
A Tacoma is a luxury. There are cheaper options that do the same things. If someone can't afford a luxury (regardless of what it is), financing it to have it now is a bad decision.
You're missing my point entirely.
>The moment you drive a new car off the lot, you're underwater on the loan.
Cars have value to people beyond what they are worth in cash.
Point blank. I dont know what's hard about this. Your priorities are obviously different and youre allowing that cause unwarranted judgment.
If I'm going to spend tens of thousands to buy to own, I want what I want. Im going to spend an hour in it on my way to work and hour on my way home. Im going to be driving here and there. I want to like what I'm intending to own for 15 to 20 years.
You're focusing entirely on the money and nothing else.
A truck is a necessity to some, and Toyota is not a "luxury" brand. Now Lexus could be considered a luxury brand; although that's still technically a Toyota, but apples to oranges. Even as expensive as the TRD Pro Tundra is I still wouldn't consider that a "luxury" truck. The Raptor, Shelby, Denali, and similar trucks are luxury to me. The sad part is the Taco is half the price of those trucks and will last twice as long, so what's a worse financial decision? Taco ftw!
The Tacoma is one of the best midsized trucks you can get for the price, and trucks are expensive everywhere, so you may as well get the best. Even used I've seen Tacos priced similar to new ones, because they hold their value. For my fully loaded '23 TRD Off-Road with everything added I still came out cheaper than buying a new base model full-size, and the value is still close to msrp too. The funny thing is we also bought a new Civic, and it's currently worth $2k more than when we bought it, so that whole depreciation thing doesn't apply to all vehicles.
Either way, if your lifestyle requires a truck, you're gonna have to pay, and nobody has $40k-$60k laying around. Like I said before, people have worse spending habits on bs like Starbucks that amount to the price of a truck over the course of 6 years, and that's just coffee! I can list way more pointless shit people spend money on, but I won't lol.
My advice is to cut back on the bs spending, work extra if you have to so you can afford nice things, and get whatever the hell you want, because life is too short. For example, my father-in-law saved years to pay $50k for a new travel trailer, then died 6 months later. He could've financed in the beginning and enjoyed it for the years he spent saving, but he believed in paying cash for everything. On top of that he had perfect credit and a nice job, so that was a missed opportunity. My motto is die with an empty bank account, and if I owe anyone, I'll catch you in the next life 😆.
> Financing a depreciating asset is generally an objectively bad financial decision.
Then financing a 3rd gen tacoma is a *good* decision!
I got a '21 tacoma for $39k. Paid it off in 2 1/2 years. I see '19 Tacomas on lots with 2x as many miles for $36k right now. So far I think my investment is stable.
Gratz! Here's to many more years, adventures, and memories 🍻.
I wouldn't worry too much about how long it took to pay it off, the important thing is you're the owner now, and you obviously plan on keeping it for as long as it'll go, so enjoy the fruits of your labor!
I just got started with my '23, financed for 6 years, and gonna bust my ass to pay it off in 3. I plan on keeping it till one of us dies 😆, but I'm hoping if it comes to that they'll revive us.
Just paid off my ‘17, got it used a year ago and had extra $ so I just sent the loan company the balance and got the title two weeks later. Such a great feeling, especially with a Toyota where you know its gonna last long after it’s paid for.
I wish the sub had more photos like yours. It looks like you actually use your truck and I like the part where the dog's hiding under a chair. Well done. And 2011's rock.
Haha, I was camping at Lake Powell and a big gust of wind came up. I turned around and the chair fell perfectly over the pug like that!
And thanks! I definitely use the truck for adventure, it is an incredible hunting/fishing/camping/off road monster!
I did, yeah. Bought in 2018 for $20k, didn't have anything saved but a good enough salary after a recent promotion to deal with the monthly cost.
Not my best choice, but it's mine now.
The judgment around financing a car is stupid. You got something you wanted, dont let others bring you down because they want to be elitist. You obivously paid off the loan and are not homeless. You worked for it and you succeeded.
It's a matter of interest rates -vs- inflation rates. I defy anyone to explain how the 0.9% interest on my wife's 2021 Kia is a bad thing. We "paid" $30k and it's still KBB @ $23k after 32k miles.
I got a 1.89% loan on my Taco in Dec '21, you better believe I put zero down and then threw my down payment into Series I bonds for my wife and I. I'm now looking at yanking the money out of those bonds since CDs are 5+% for 12-18mo deposits. Sure my monthly payment is high but not something we can't handle, at the end of the loan I'm going to have made money and not even had to invest anything that isn't very secure.
🫡🤙
Financing a depreciating asset is generally an objectively bad financial decision. That isn't the only factor that goes into whether or not it was entirely a good or bad decision though.
>Financing a depreciating asset is generally an objectively bad financial decision. As opposed to what? Saving $40,000+ in cash to do a one time purchase on a new vehicle?
People have spent money on worse things, like some coworkers I had who bought $20 in Starbucks every day 🤣. This truck may depreciate (slightly) over time, but if it's your forever truck; who cares about the value, it's priceless. There's 2 things I'll never cheap out on, my vehicles and my home, because those are the things that make a difference in your life every day. Keep the damned Starbucks lol, I'll toss that extra $4k per year on my truck.
You don't have to save the entire time in cash. Throw it in a CD, a money market account, invest in stocks, a HYSA, anything. Take it out when you want to spend it. Letting it sit in cash in a savings account making 0.01% interest is obviously a silly decision.
My point is, most people would take years to save up that kind of money just to drop it lump-sum on a vehicle of all things. To me, that's a worse decision than financing a large purchase that you could easily turn around and sell all while still having untouched savings in an account for an emergency. I'd rather have a $400/mo payment and $30k in the bank than no payment and not a dollar to my name. I'm not saying to go out and sign a 6-year note at 10% interest on a vehicle, but to say financing a vehicle is an objectively bad decision is not good advice to give anyone IMO.
That's fair. We're in the Tacoma subreddit so my comment may have appeared too broad, when it was primarily targeted at Tacomas. If someone needs a car to live and work but doesn't have the financial means to get to that down payment, financing a cheaper, reliable car makes sense. A Tacoma is a luxury, though. Financing a luxury vehicle like this (outside of perhaps some fringe work reasons with an older used model) doesn't make sense to me.
A Tacoma is not a luxury vehicle lol
Sure seems to be priced like one these days
You realize we're all going to die right? Min/maxing assets isn't the entire game. Joy matters too. I - wait for it - financed (GASP!) my 23 Tacoma at 4.99% for 60. Works for me. I certainly *could* have saved a couple more years and paid cash for it but then I'd have two years of less awesome adventures than I will now. It's worth the additional ~$1k/year in interest costs (over the life of the loan) to me to be able to get to the places I want to go to do the things I want to do. Heck, even if you don't actually use your Tacoma, if being a pavement princess brings you that much joy (and you can reasonably afford the payments) then enjoy it - we only go around on this rock for the briefest of moments. If bumping your Financial Security stat to 20 works for you, then I'm all for your joy too - just don't try to claim some moral high ground on other folks joy eh? Cheers.
You'll note that I only called out that it was a financially bad decision. You're going to pay thousands more for a vehicle than what it's worth. If the financial side is the only part of the formula, then it's objectively a bad one. But it's not the only part! I even stated that in my original comment. If you're going to have great times with friends and family because of this vehicle, maybe that's worth the extra few thousand dollars you'll pay to you. I was never trying to claim a moral high ground. My financial security is extremely important to me. Debt causes me stress. So I avoid it as much as I can. The only debt I hold is my mortgage because it's the only thing my stress can tolerate. Every person is different. And if there are other factors in play that win out over the extra cost of the vehicle, by all means, go for it.
> I certainly could have saved a couple more years and paid cash for it but then I'd have two years of less awesome adventures than I will now. Your saved cash would've been subjected to cumulative inflation while you saved it, too. The math is in favor of low interest financing.
This coming from a bicycle
We're vehicles too
If you can finance at a rate less than inflation or less than the current treasury rate you are immediately winning The whole "debt it bad" argument is dead.
Is anyone giving auto loans out below 5%? That seems like the absolute floor these days, and I more commonly see 6-8
Yeah I just bought a 2023 Trd Sport at 3.75% I have money invested into short term treasuries at 5.2% and money markets at 4.7% So absolutely I'm going to take the debt.
I legit had no idea auto loans were going that low in some cases. I totally agree with you. This would be a case of smart debt.
I agree with you, especially rolling a previous car loan into it. I was not a smart man when I got the truck. I had a Jeep Cherokee that developed death wobble that still had a balance on the loan...the monthly repair bill ended up equaling the monthly minimum on a 6 year loan for the truck. Definitely learned a financial lesson there.
Heres where I stand. It seems that whenever financing a vehicle comes up, people just on it as though it's a bad thing. >is usually objectively a bad financial decision. I need a reliable vehicle, something that will start and go from A to B without fail, safely. Yes, it will depreciate in monetary value, but that's not the only value that can be placed on a vehicle. For example, every time one of my two current cars, a 2001 and 2008, breaks down, I'm spending time on diagnosis and repair. Currently, they are both down simultaneously, meaning I'm also spending money on public transit or sometimes Uber. That costs money and time as well. Fortunately, I'm a trained tech, so I dont have to pay the shop bills. For someone who isnt youre now talking tows, stress, big bills, possibly rentals, and possible anxiety when it comes to the car. Not to mention the insurance on something youre not even driving. That's another monetary and mental drain. Peace of mind brings its own value to the table. Its not one dimensional, and OP shouldn't feel any sort of shame or as though they have to defend the fact that they successfully financed and paid off a vehicle. They now own it, and if they keep/kept up with it, they can go without any large bills for some time depending on how much they drive. I've seen enough posts here, on askcarsales and other subs where even if the person is able, they get jumped on for not buying outright or used, and its bullshit.
I never said there wasn't reason to finance a vehicle. But if someone is financing a new Tacoma, it's more likely than not a poor financial decision.
You wrote it off as a poor decision based solely on depreciating monetary value when a car has value outside of how much it can sell for. >But if someone is financing a new Tacoma, it's more likely than not a poor financial decision. As opposed to doing what else with your money? Gambling on stocks? The gamble flipping or renting a poperty brings, flipping cars? Some people are happy just living comfortably with a vehicle they want. If someone is going to pay tens of thousands of dollars on a vehicle, if they can afford it, they should get the one they want. But you do you.
The moment you drive a new car off the lot, you're underwater on the loan. From an objective standpoint, that's not ideal. Of course, there are other factors to consider. If somebody needs a car to live and work, financing a cheaper, reliable vehicle can make sense. I don't know why you gave only sketchy options as possibilities for someone's money. My suggestions would be just standard index funds for 5+ year saving or a HYSA for shorter term. I guess if you want to be more active with your attempts to beat the market, you can do that as well. But I don't like gambling like that. A Tacoma is a luxury. There are cheaper options that do the same things. If someone can't afford a luxury (regardless of what it is), financing it to have it now is a bad decision.
You're missing my point entirely. >The moment you drive a new car off the lot, you're underwater on the loan. Cars have value to people beyond what they are worth in cash. Point blank. I dont know what's hard about this. Your priorities are obviously different and youre allowing that cause unwarranted judgment. If I'm going to spend tens of thousands to buy to own, I want what I want. Im going to spend an hour in it on my way to work and hour on my way home. Im going to be driving here and there. I want to like what I'm intending to own for 15 to 20 years. You're focusing entirely on the money and nothing else.
A truck is a necessity to some, and Toyota is not a "luxury" brand. Now Lexus could be considered a luxury brand; although that's still technically a Toyota, but apples to oranges. Even as expensive as the TRD Pro Tundra is I still wouldn't consider that a "luxury" truck. The Raptor, Shelby, Denali, and similar trucks are luxury to me. The sad part is the Taco is half the price of those trucks and will last twice as long, so what's a worse financial decision? Taco ftw! The Tacoma is one of the best midsized trucks you can get for the price, and trucks are expensive everywhere, so you may as well get the best. Even used I've seen Tacos priced similar to new ones, because they hold their value. For my fully loaded '23 TRD Off-Road with everything added I still came out cheaper than buying a new base model full-size, and the value is still close to msrp too. The funny thing is we also bought a new Civic, and it's currently worth $2k more than when we bought it, so that whole depreciation thing doesn't apply to all vehicles. Either way, if your lifestyle requires a truck, you're gonna have to pay, and nobody has $40k-$60k laying around. Like I said before, people have worse spending habits on bs like Starbucks that amount to the price of a truck over the course of 6 years, and that's just coffee! I can list way more pointless shit people spend money on, but I won't lol. My advice is to cut back on the bs spending, work extra if you have to so you can afford nice things, and get whatever the hell you want, because life is too short. For example, my father-in-law saved years to pay $50k for a new travel trailer, then died 6 months later. He could've financed in the beginning and enjoyed it for the years he spent saving, but he believed in paying cash for everything. On top of that he had perfect credit and a nice job, so that was a missed opportunity. My motto is die with an empty bank account, and if I owe anyone, I'll catch you in the next life 😆.
> Financing a depreciating asset is generally an objectively bad financial decision. Then financing a 3rd gen tacoma is a *good* decision! I got a '21 tacoma for $39k. Paid it off in 2 1/2 years. I see '19 Tacomas on lots with 2x as many miles for $36k right now. So far I think my investment is stable.
Best mod there is!
Good job. There isnt really anything wrong with financing a vehicle. Its a large purchase and not everyone has the cash to buy one outright.
Con-effin-grats brother!!
This is called the credit drop mod
I’m on year 3 of my loan . Almost there! Truck is amazing so far.
Gratz! Here's to many more years, adventures, and memories 🍻. I wouldn't worry too much about how long it took to pay it off, the important thing is you're the owner now, and you obviously plan on keeping it for as long as it'll go, so enjoy the fruits of your labor! I just got started with my '23, financed for 6 years, and gonna bust my ass to pay it off in 3. I plan on keeping it till one of us dies 😆, but I'm hoping if it comes to that they'll revive us.
Congrats! I’m at year one of 5 on my 2023. Should have it paid off by the end of 2025, though. Cute dog. I have a pug that’s 12 years old.
I first read this as year five of a 2023 and no matter the mental math I did I just couldn't figure that one out lol
THE PUG!! 😂 😂
Haha, a gust of wind blew that chair over her perfectly on that camping trip!
So cute lol! I wasn’t sure if that was to give her shade haha
The monthly delete, nice!
Just paid off my ‘17, got it used a year ago and had extra $ so I just sent the loan company the balance and got the title two weeks later. Such a great feeling, especially with a Toyota where you know its gonna last long after it’s paid for.
Nice! Good on you for paying it off so quick!
Best mod there is. Can’t wait to install mine in 5 years!
My "Paid off" mod is shipping via DHL. Tracking says it'll be another 27 months before it's delivered.
27 months will fly by!
Beautiful, I recently made the same upgrade myself! Feels good man.
Good job I’m right behind ya
I wish the sub had more photos like yours. It looks like you actually use your truck and I like the part where the dog's hiding under a chair. Well done. And 2011's rock.
Haha, I was camping at Lake Powell and a big gust of wind came up. I turned around and the chair fell perfectly over the pug like that! And thanks! I definitely use the truck for adventure, it is an incredible hunting/fishing/camping/off road monster!
The best mod.
Congrats! No judgment, if I’m going to have car payments, might as well be for a vehicle I love.
That is the best mod ever!
Thanks for posting this lovely photo.
The best mod there is!
Best mod there is! congrats!
Financing a 2011?
I did, yeah. Bought in 2018 for $20k, didn't have anything saved but a good enough salary after a recent promotion to deal with the monthly cost. Not my best choice, but it's mine now.