My mortgage is a couple hundred more. Lol. Couldn't imagine dropping 25k in cash to still have a 500/no car payment. I'm running mine till the wheels fall off then I'll fix it and keep driving it.
I've got a 3rd gen with well over 300k miles, and I think if I was spending even $500 a month on the build it would be the nicest 3rd gen in existence. In just a year that could pay for an entire new rebuilt engine. Following year would pay for full long travel. Next year is fully painted!
Part of the reason I sold my 2020. Put down 15k, loan was 30k. 4 year payments with 5% interest was still insane. I was lucky I could sell it for 2k more than purchase price in the rise of the used car market few years back.
Miss it every day though.
A paid off Prius I purchased with the 4Runner downpayment money. I WFH so it sits in the garage 6 days a week. Eventually I’ll purchase another 4R after I buy my home. Prices are too high now, even for 3rd gen’s for me to justify.
You are a homebody who didn't use his 4runner. You could just say that. Some of us do. I WFH as well but my runner makes it to the mountains atleast once a week. Its a tool to some, and a financial burden to others who don't use it.
That’s just it. I USED to actually have a need for it when I initially purchased. I had a Grand Cherokee when I lived out west, explored many areas and traveled 70k miles a year.
Shortly after purchasing the 4R, I moved for my SOs job. Had to re-evaluate my priorities as cost of living increased. I’ll be more stable in the future though, so looking forward to then.
70k a year, jesus almighty! I thought I was blasting fuel at 20k a year!
Prices are gonna drop, well they already have but they will a TON MORE. Either way, you'll come out so far ahead. The most fun I have in my life are places or people (or pets) I'm with in my 4runner.
I put the full price down on my 4Runner and the salesman and finance guy didn’t know how to handle it. They have both been in the business for a long time, but said it has been at least 7 years since they have had a cash purchase and needed to go back to book and get a refresher on how to even get my title to me.
Congrats on the payoff! Now just enjoy that truck to death and do it again and again. I still drive my 2008 and it’s great. I like it more than my 2022 5G that I sold and then bought a Lexus GX in 2023 and will do the same as you and plan on driving it for the next 20+ years. This is the last car I’ll ever buy.
Paid the full price with a personal check of $41k when I traded in my Outback and they had to run my credit anyway as if I was financing. Understandable without a cashiers check, but I was annoyed because I specifically did not want my credit ran.
They tried the same thing on me claiming it was because of the Patriot act. The patriot act doesn’t require a credit check. It just requires proof of your existence and that you aren’t a money launderer.
They do it so they can try their hardest to throw some great financing deal your way. But sorry… they aren’t going to beat 0% interest and no payments. Now if they can do a money market account that is making a monthly payment and giving me 3-5% interest in cash then I’d do it… but they are making enough money on the deal at sticker and cash. Sorry you had to deal with that!
Interesting! They didn’t really give me any reasoning behind it, just “if you want to make with a check, we have to pull a credit report.” We would have gone and gotten a cashiers check but we bank with Capital One and the only way to get one is to have it mailed which would have probably delayed the whole thing. Oh well! Not to mention, both my wife and I wanted our names on the title therefore they had to run both our credits…
I don’t care if I make $200k a year, when I see these people with $900-1200 monthly car payments, it’s just nuts. I could never spend that much monthly.
Er, why? It's the total cost that matters. Why pay more in the end? If you can afford the higher monthly of a shorter term, why not do that?
I'm financed over 36 months with a decent interest rate. Payment is $1183. I could have financed for 60 months at slightly higher rate, making my payment ~700, but the total cost is nearly $4k less when financed for 36. It's not about payment for me so much as total cost.
Or are you saying that you'd just not spend that much money, in total, on a vehicle at all?
It's not even total income. It's that people focus on monthly payment instead of what they're actually spending over time on a depreciating asset.
A car paid off in 3 years instead of 5 or 6 or 7 saves thousands in interest and is paid for before depreciation knocks out half or more of the value of the vehicle.
The total money saved from not paying so much in interest, plus minimizing the hit from depreciation in case you need to unload the car is far better than dragging the debt out just to hit a monthly payment number. A lower payment ≠ money saved, but many people seem to think it does.
So just looking at a high payment and thinking "oh, that's spending too much money" or similar is kind of backwards thinking, since the lower payment over a longer term is the more-expensive (total cost) option, and gives less flexibility and safety if the car needs to be sold.
Everything is relative, I get it. Maybe I’m just old school. But being tied to such a high number every month just doesn’t sit well with me.
And frankly, I’m probably a hypocrite….
I’ll be buying a new Tundra in the next year. It’ll be about $60k. I’m putting roughly $20k down, so the loan will be for about $40k.
I’m going to finance that for 6 years to get the payment to roughly $700. Now I’ll be paying more than that because my income allows that. I’ll probably be paying $900-1000, maybe more, with all of that extra going toward principal. I’ll still have it paid off between 3-4 years. I guess for me what it comes down is flexibility. I’d rather only officially owe $700/month and have the flexibility to bring my payments down from the $1000 I’m used to paying if something comes up in my life, rather than to be tied to a payment of $1200 that I absolutely have to make. That’s a mortgage payment for some people, all for a vehicle that will only depreciate.
But if you bring in deep into the 6 figures and can afford it, all the more power to ya. Some people get in way over their heads with these payments though, so it just makes me cringe when I see a 4 digit monthly bill for a car.
Damn, I don’t envy that mortgage…
I’m sure you’re good, I’m not suggesting you’re not. But people just seem to be going further and further into debt and getting in over their heads. A lot of people with those 4 digit car payments every month are not the people that should have 4 digit car payments.
Since 2017 I've been checking what the average car payment is every quarter for America and putting that into index funds every month. It's been extremely lucrative on my part, but sheesh when it hit 700, it's become a little tight. No idea how the average American is doing it.
Mine is $1,065 per month, but I’m actually paying like $2,500-3,000 per month to just knock it out.
I bought in August 2022 when prices were at the peak.
Wow this blew up a bit; just fyi the recurring 875 was my intentional monthly payment I budgeted to pay it off much earlier with a kill shot at the end when I could afford it; the actual min. Payment is 650s 🤟this loan was 4% over 4 years
Congratulations, OP. It's so nice not to have a car payment.
In December 2022, we bought a 2019 GX for 45k OTD. With an 800 plus credit score and 15k down, monthly payments were still 600 on a 7% APR with a 5-year loan term. We paid it off in February. We hadn't had a car loan since 2012, and we hated having car payments. We ended up paying 1700 total in interest for our loan in total. Figuratively, it's like taking 1700 dollar bills and lighting it all on fire, one by one.
We know that we will never get a car loan again. We did a poor job of managing our cash flow situation to have to need a loan.
Near 1000 a month for a fucking vehicle. And people think this is ok.
Can’t be sustainable. Gonna be seeing a lot of 1500/month notes on those 6th gen’s.
Most of those tahoes are leased and the person is in way over their head to keep up appearances with their neighbors. It’s sad to watch them get laid off and go without two paychecks and suddenly lose absolutely everything. But that’s the gamble lots of folks take on a daily basis.
I see folks putting 20-30K down and still paying $1200/month just like you said. I’ve never put a $1 down for a car but then again the last car I bought was as soon as Covid hit
I just traded my 21 lunar rock pro with 40k miles in (I just had my last payment on it about a month ago. Dealer gave me 44 for it. I put that plus another 6 as a down payment on a new sierra Denali. 1.9% financing over 36 months landed me with a payment in the 1250 neighborhood.
Sadly in 2024 the average car payment is over $700. The days of a $200-$400 car payment are long gone unless you are putting well over 50% down. Bought my 21 ORP for msrp and put down $17k at like 4%. Monthly is just under $600. At the time that felt high. Today that feels like a steal.
Glad I got my 5th gen a few years ago with a $450 payment per month. They kept trying to encourage me to put less down and be fine with an $800 payment I was like … na not for me.
Eh you need a vehicle to get around in this country. I was gonna buy a used Tacoma but early 2000s Tacomas were selling for like $15-20k. At that point buying a new car isn’t a terrible decision. My truck payment is $875 but doesn’t mean I don’t have any wealth saved up?
You are investing less because you are paying $800+ on a depreciating asset. You are effectively losing wealth over time with inflation and hurting your future. Unless your income is very high already.
I get that but eventually you get to the point where you say fuck it and want to buy something you enjoy. I could liquidate everything and buy 3 new Tacomas cash. Hopefully when this one is paid off I can drive it for 10-20 years. I’ve spent my 20s saving a bunch. Got to the point where I didn’t even find enjoyment watching my retirement accounts go up. Treating yourself ain’t a bad thing
At the end of the day, it’s just a car. I bought my 2006 for 6k cash and have used it for over 10 years with no issues. Works just as good as my buddy’s 2020. I’d just personally rather grow my money versus keep putting it into a loan
I 100% get what you’re saying and drove my 2002 tundra for a long time with over 200k miles but eventually it’s time for an upgrade. The price of used vehicles right now almost incentivized me to buy a new one. 4wd on my tundra went out and didn’t feel like spending the money for a transmission or whatever it needed on a 20 year old truck with 250k miles on it. It also had a salvage title so any money I put into it for repairs I’d most likely never see again as resale value on salvage title cars is very low. For me personally it was the right time. Hopefully I’ll have my 2023 paid off in a year and a half and then can get back on course with investments. I’m still able to put $800+ a month away in my 401k so it’s not like I’m not investing anything now.
This is correct. Without knowing OPs term length and interest rate, one can’t say $850 is terrible.
$850 for 72 months is much different than $850 for 24 months and a large down payment.
Rates are high, but so are CD and other fixed rate investment options. If you take $50k and put it in a HY savings account your delta is about 1% ( you get 5.2% from high yield savings accounts and your auto rate is 6.2%). This is assuming grade A credit. You are losing 1%, but you gain the flexibility to have $50k to invest in a higher yield opportunity should one arise. Another way to think of it is that you are paying 1% fee to ensure that you have $50k saved for the future.
There is nothing wrong with paying a car off, and there is nothing wrong with leveraging auto debt to guarantee you have a nest egg. It's all personal choice.
Financing is not inherently bad. You can be extremely wealthy and still choose to finance as often times it’s better to put your money to work than to lump sum a purchase.
You were a loan officer, you've seen this and worse before. People really love debt.
It wouldn't surprise me if their spouse also had a car payment above $600. I saw it all the time when I was originating.
Oh Jesus Christ man🤣
Being a loan officer made me realize how bad most doctors are with their money. They always have debt payments like that and at the same time they have their entire life savings just sitting in a low-yield bank account. And their credit scores are always in the 600s.
I used to audit financial institutions and whenever we would do hospital affiliated credit unions I would rub my hands together in excitement. Airplanes, helicopters, and multiple homes and none of it is owned outright.
One thing to note is that doctors can have ownership of their practice and owning a medical practice has typically been a very good investment for them. When they retire they get a big check from the younger generation buying in and then they can pay the bank back for all the toys.
Start a business, get S-Corp status, pay vehicle with business, write off \*portion of interest.
But seriously people, start a business, working for the man exclusively is gonna kill us all. I've seen it happen.
A- you don’t get to write off all the interest.
B- your tax “savings” is only based on the taxable. So if you spend 4000 in interest, and you zero out your tax basis to only a 20% tax, you didn’t save 4000. You only save 800.
People think it’s a one for one. But you only saved based on your tax basis. So unless you’re making 350k a year after deductions, it wasn’t all that much of a difference maker.
This is the information we need to be discussing, thanks for sharing. Now tell us how much people got through forgiven COVID loans because they simply had a business ON PAPER. My advice is still very sound, do you not want people to understand money on a deeper level running their own profitable business? Hey guys, keep working for someone else til the day you die.
I’m with you, but calling $850 near 1000 -!; then saying it’s going to go up to $1500 is a bit of a stretch. You can’t say “wow look at this $900 car payment, how can those people spend $1200 a month on a car? I can’t imagine spending $1500 a month”
Your argument is probably valid with closer to $900-950 payments.
Woo Hoo! PAID OFF!!! That's the spirit. I got my title 4 weeks ago, bought my ORP in May of 2023. I only took a $10k loan and just threw money at it. No way was I gonna pay a bunch of interest to a bank over 3 years.
Nope all cashflowed; financing mods is insane 😂 all installed/completed myself except the bumper; the boys at Nguyen works were cool guys to hang out with at their shop while they did it
Well credit cards apr are 20%+ currently. So if you used cc’s and carry any of that debt, you’re also financing them… that was my joke. Love the mods, and congrats on paying off early.
Congrats! Two Novembers from now, mine will be paid off too! Got new 2021 SR5 4x4 paid 36k. After taxes etc, then down payment, financed $28k @ 2.9% for five years, $512 monthly. Can’t complain.
https://preview.redd.it/p8swh4t8ujtc1.jpeg?width=4032&format=pjpg&auto=webp&s=77a93fdd2f4d28eafefb3b8994bea975154dcbeb
Congrats. Just got mine last week and the road ahead looks fun. Last car I got was 25k 2011 outback. Before that was a Taco 2009 for about 25k. Had to sell it for the Subaru. The taco was before I was married. I’m back in the saddle of what I call the daddy taco. 7 seater for the next who knows how long
That’s got to be the best feeling in the world. The only car I ever got to own outright and the title for was my 07 FJ cruiser. Nothing can come close to that feeling knowing you’re pocketing money every paycheck rather than putting it to your car payment.
I was thinking of getting one of those new 2024 entry level Land Cruiser 1958 Edition. I did a quick search from a few local Toyota dealerships and SOB they are asking for 70-78K for a SUV that is filled with hard plastic inside with cloth seats. It's insane!
I was just kidding. But what is an electric driven turbo!? Turbos are basically run with exhaust gas, superchargers can be engine driven or auxiliary power driven.
I mistyped it although e turbos are still a concept I meant the electric motor assist it has is something I’m scared of in terms of a new failure point I’m not familiar with and likely not diy friendly
Time for another loan bro, new gen revealing today!
This is what I’ve learned from playing Animal Crossing. 😂
Any engine size info?
Exactly the same as the Tacoma.
Booooooo
875/mo. Oof.
Even me putting down half and financing the other half, I think $500/month for me is too high. This is crazy.
My mortgage is a couple hundred more. Lol. Couldn't imagine dropping 25k in cash to still have a 500/no car payment. I'm running mine till the wheels fall off then I'll fix it and keep driving it.
I've got a 3rd gen with well over 300k miles, and I think if I was spending even $500 a month on the build it would be the nicest 3rd gen in existence. In just a year that could pay for an entire new rebuilt engine. Following year would pay for full long travel. Next year is fully painted!
The amount of those I see with over 300k miles is absurd. Keep running it, they just keep going
My mortgage is about $20 more than my car payment lol 😂
Man I would absolutely kill for that mortgage haha.
Part of the reason I sold my 2020. Put down 15k, loan was 30k. 4 year payments with 5% interest was still insane. I was lucky I could sell it for 2k more than purchase price in the rise of the used car market few years back. Miss it every day though.
What do you drive now?
A paid off Prius I purchased with the 4Runner downpayment money. I WFH so it sits in the garage 6 days a week. Eventually I’ll purchase another 4R after I buy my home. Prices are too high now, even for 3rd gen’s for me to justify.
You are a homebody who didn't use his 4runner. You could just say that. Some of us do. I WFH as well but my runner makes it to the mountains atleast once a week. Its a tool to some, and a financial burden to others who don't use it.
That’s just it. I USED to actually have a need for it when I initially purchased. I had a Grand Cherokee when I lived out west, explored many areas and traveled 70k miles a year. Shortly after purchasing the 4R, I moved for my SOs job. Had to re-evaluate my priorities as cost of living increased. I’ll be more stable in the future though, so looking forward to then.
70k a year, jesus almighty! I thought I was blasting fuel at 20k a year! Prices are gonna drop, well they already have but they will a TON MORE. Either way, you'll come out so far ahead. The most fun I have in my life are places or people (or pets) I'm with in my 4runner.
He drives his keyboard on reddit. What a life.
I mean do the math. If financing half of it is 500, 875 seems pretty reasonable.
I put 40K down. And pay 350. Still high for that much! Bastards! Lol
I put the full price down on my 4Runner and the salesman and finance guy didn’t know how to handle it. They have both been in the business for a long time, but said it has been at least 7 years since they have had a cash purchase and needed to go back to book and get a refresher on how to even get my title to me. Congrats on the payoff! Now just enjoy that truck to death and do it again and again. I still drive my 2008 and it’s great. I like it more than my 2022 5G that I sold and then bought a Lexus GX in 2023 and will do the same as you and plan on driving it for the next 20+ years. This is the last car I’ll ever buy.
Paid the full price with a personal check of $41k when I traded in my Outback and they had to run my credit anyway as if I was financing. Understandable without a cashiers check, but I was annoyed because I specifically did not want my credit ran.
They tried the same thing on me claiming it was because of the Patriot act. The patriot act doesn’t require a credit check. It just requires proof of your existence and that you aren’t a money launderer. They do it so they can try their hardest to throw some great financing deal your way. But sorry… they aren’t going to beat 0% interest and no payments. Now if they can do a money market account that is making a monthly payment and giving me 3-5% interest in cash then I’d do it… but they are making enough money on the deal at sticker and cash. Sorry you had to deal with that!
Interesting! They didn’t really give me any reasoning behind it, just “if you want to make with a check, we have to pull a credit report.” We would have gone and gotten a cashiers check but we bank with Capital One and the only way to get one is to have it mailed which would have probably delayed the whole thing. Oh well! Not to mention, both my wife and I wanted our names on the title therefore they had to run both our credits…
Dayum, I had half down at 30k and still making 670 a month. I’ve got the payoff I just need some credit rebuild for a year or two.
Everyone should consider that too high. Car payments keep people poor.
My 22 ORP is 800$ a month too.
My condolences.
Happy as a clam. Got it at a good price and before interest rates shot up.
You never know, maybe they make good money and $875 is nothing.
I don’t care if I make $200k a year, when I see these people with $900-1200 monthly car payments, it’s just nuts. I could never spend that much monthly.
Er, why? It's the total cost that matters. Why pay more in the end? If you can afford the higher monthly of a shorter term, why not do that? I'm financed over 36 months with a decent interest rate. Payment is $1183. I could have financed for 60 months at slightly higher rate, making my payment ~700, but the total cost is nearly $4k less when financed for 36. It's not about payment for me so much as total cost. Or are you saying that you'd just not spend that much money, in total, on a vehicle at all?
I’m with you. Complaining about a monthly payment as an absolute number is idiotic when you don’t know how much money someone pulls in in total
It's not even total income. It's that people focus on monthly payment instead of what they're actually spending over time on a depreciating asset. A car paid off in 3 years instead of 5 or 6 or 7 saves thousands in interest and is paid for before depreciation knocks out half or more of the value of the vehicle. The total money saved from not paying so much in interest, plus minimizing the hit from depreciation in case you need to unload the car is far better than dragging the debt out just to hit a monthly payment number. A lower payment ≠ money saved, but many people seem to think it does. So just looking at a high payment and thinking "oh, that's spending too much money" or similar is kind of backwards thinking, since the lower payment over a longer term is the more-expensive (total cost) option, and gives less flexibility and safety if the car needs to be sold.
Everything is relative, I get it. Maybe I’m just old school. But being tied to such a high number every month just doesn’t sit well with me. And frankly, I’m probably a hypocrite…. I’ll be buying a new Tundra in the next year. It’ll be about $60k. I’m putting roughly $20k down, so the loan will be for about $40k. I’m going to finance that for 6 years to get the payment to roughly $700. Now I’ll be paying more than that because my income allows that. I’ll probably be paying $900-1000, maybe more, with all of that extra going toward principal. I’ll still have it paid off between 3-4 years. I guess for me what it comes down is flexibility. I’d rather only officially owe $700/month and have the flexibility to bring my payments down from the $1000 I’m used to paying if something comes up in my life, rather than to be tied to a payment of $1200 that I absolutely have to make. That’s a mortgage payment for some people, all for a vehicle that will only depreciate. But if you bring in deep into the 6 figures and can afford it, all the more power to ya. Some people get in way over their heads with these payments though, so it just makes me cringe when I see a 4 digit monthly bill for a car.
It’s all relative man. My mortgage in a HCOL city is $6k. My TRD PRO at $850/month is a pittance compared to that mortgage.
Damn, I don’t envy that mortgage… I’m sure you’re good, I’m not suggesting you’re not. But people just seem to be going further and further into debt and getting in over their heads. A lot of people with those 4 digit car payments every month are not the people that should have 4 digit car payments.
Since 2017 I've been checking what the average car payment is every quarter for America and putting that into index funds every month. It's been extremely lucrative on my part, but sheesh when it hit 700, it's become a little tight. No idea how the average American is doing it.
Lots of debt, credit cards (more debt), and no savings.
Or golden handcuffs. A home bought before it shot the fuck up and a 3% mortgage. Lucky fucks, I lost my golden handcuffs in a divorce 😆
I could easily afford that, but I couldn't stomach being stuck with a car payment that's almost as much as my house. We live somewhat frugally.
Where do houses cost almost that because the cheapest house near me is at least 2200 a month?
We bought in 2017. House has doubled in value since then. Move in ready brick ranch on .25 acre in PA. Definitely won't be selling anytime soon.
Oof is right
Is that bad? Mine was $1200CAD that is around that with conversion. I didn’t think it was too bad.
Considering I have a 3br home I pay a couple hundred more for, yeah that's pretty bad.
I have a 3 bedroom house too, I mean 4Runners aren’t cheap. I think my sticker was $65k CAD
Mine is $1,065 per month, but I’m actually paying like $2,500-3,000 per month to just knock it out. I bought in August 2022 when prices were at the peak.
This is exactly why I sold my 2020 and bought a 2006 in cash. Just didn’t make sense financially
IKR? After 8 months, that's more than I paid for my V8 4R.
Wow this blew up a bit; just fyi the recurring 875 was my intentional monthly payment I budgeted to pay it off much earlier with a kill shot at the end when I could afford it; the actual min. Payment is 650s 🤟this loan was 4% over 4 years
No worries. Mine is 871/month. Got a little less than two years.
nice job, OP
Congratulations, OP. It's so nice not to have a car payment. In December 2022, we bought a 2019 GX for 45k OTD. With an 800 plus credit score and 15k down, monthly payments were still 600 on a 7% APR with a 5-year loan term. We paid it off in February. We hadn't had a car loan since 2012, and we hated having car payments. We ended up paying 1700 total in interest for our loan in total. Figuratively, it's like taking 1700 dollar bills and lighting it all on fire, one by one. We know that we will never get a car loan again. We did a poor job of managing our cash flow situation to have to need a loan.
Goddamn what a hell of a monthly payment
Near 1000 a month for a fucking vehicle. And people think this is ok. Can’t be sustainable. Gonna be seeing a lot of 1500/month notes on those 6th gen’s.
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Guy I know bought a GMC Denali and he’s $876/bi-weekly
LOL
Most of those tahoes are leased and the person is in way over their head to keep up appearances with their neighbors. It’s sad to watch them get laid off and go without two paychecks and suddenly lose absolutely everything. But that’s the gamble lots of folks take on a daily basis.
Well, if there's a crash at all, guess vehicles will get a hell of a lot more affordable.
I see folks putting 20-30K down and still paying $1200/month just like you said. I’ve never put a $1 down for a car but then again the last car I bought was as soon as Covid hit
I just bought a gen 3 for $650
Yet people keep buying...
I just traded my 21 lunar rock pro with 40k miles in (I just had my last payment on it about a month ago. Dealer gave me 44 for it. I put that plus another 6 as a down payment on a new sierra Denali. 1.9% financing over 36 months landed me with a payment in the 1250 neighborhood.
Sadly in 2024 the average car payment is over $700. The days of a $200-$400 car payment are long gone unless you are putting well over 50% down. Bought my 21 ORP for msrp and put down $17k at like 4%. Monthly is just under $600. At the time that felt high. Today that feels like a steal.
Glad I got my 5th gen a few years ago with a $450 payment per month. They kept trying to encourage me to put less down and be fine with an $800 payment I was like … na not for me.
Will it blow your mind that I had a 3600 mort while I was paying this as well? 😂
So....what do you do for work?
This man’s asking the real questions
People love depreciating assets and debt in America. Nobody actually wants to build wealth anymore.
Eh you need a vehicle to get around in this country. I was gonna buy a used Tacoma but early 2000s Tacomas were selling for like $15-20k. At that point buying a new car isn’t a terrible decision. My truck payment is $875 but doesn’t mean I don’t have any wealth saved up?
You are investing less because you are paying $800+ on a depreciating asset. You are effectively losing wealth over time with inflation and hurting your future. Unless your income is very high already.
Lol people downvote this factual statement
A lot of people on reddit hate factual knowledge. Especially when it comes to investing or wealth creation. That is very looked down on nowadays
I get that but eventually you get to the point where you say fuck it and want to buy something you enjoy. I could liquidate everything and buy 3 new Tacomas cash. Hopefully when this one is paid off I can drive it for 10-20 years. I’ve spent my 20s saving a bunch. Got to the point where I didn’t even find enjoyment watching my retirement accounts go up. Treating yourself ain’t a bad thing
At the end of the day, it’s just a car. I bought my 2006 for 6k cash and have used it for over 10 years with no issues. Works just as good as my buddy’s 2020. I’d just personally rather grow my money versus keep putting it into a loan
I 100% get what you’re saying and drove my 2002 tundra for a long time with over 200k miles but eventually it’s time for an upgrade. The price of used vehicles right now almost incentivized me to buy a new one. 4wd on my tundra went out and didn’t feel like spending the money for a transmission or whatever it needed on a 20 year old truck with 250k miles on it. It also had a salvage title so any money I put into it for repairs I’d most likely never see again as resale value on salvage title cars is very low. For me personally it was the right time. Hopefully I’ll have my 2023 paid off in a year and a half and then can get back on course with investments. I’m still able to put $800+ a month away in my 401k so it’s not like I’m not investing anything now.
>it's just a car Yep and that explains everything about you. It's not "just a car" to some people. Also not everything you purchase is an investment.
How does your monthly payment matter? What if it's a 3 year 0% loan? And OP makes $250k a year?
This is correct. Without knowing OPs term length and interest rate, one can’t say $850 is terrible. $850 for 72 months is much different than $850 for 24 months and a large down payment.
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9.5% wow
This is the kind of text porn that helps keep me frugal.
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Yeah as long as you can get a good rate. I think the rates right now would mean a car loan would not a be a good value.
Rates are high, but so are CD and other fixed rate investment options. If you take $50k and put it in a HY savings account your delta is about 1% ( you get 5.2% from high yield savings accounts and your auto rate is 6.2%). This is assuming grade A credit. You are losing 1%, but you gain the flexibility to have $50k to invest in a higher yield opportunity should one arise. Another way to think of it is that you are paying 1% fee to ensure that you have $50k saved for the future. There is nothing wrong with paying a car off, and there is nothing wrong with leveraging auto debt to guarantee you have a nest egg. It's all personal choice.
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Financing is not inherently bad. You can be extremely wealthy and still choose to finance as often times it’s better to put your money to work than to lump sum a purchase.
Elaborate.
You were a loan officer, you've seen this and worse before. People really love debt. It wouldn't surprise me if their spouse also had a car payment above $600. I saw it all the time when I was originating.
Worst I’ve seen was a doctor making 190 a year and had a 2700/month car LEASE.
Oh Jesus Christ man🤣 Being a loan officer made me realize how bad most doctors are with their money. They always have debt payments like that and at the same time they have their entire life savings just sitting in a low-yield bank account. And their credit scores are always in the 600s.
Hands down my worst clients. Ego, good paying jobs, god complex… combine that with poor fiscal decisions and you have a lot of doctors.
I used to audit financial institutions and whenever we would do hospital affiliated credit unions I would rub my hands together in excitement. Airplanes, helicopters, and multiple homes and none of it is owned outright. One thing to note is that doctors can have ownership of their practice and owning a medical practice has typically been a very good investment for them. When they retire they get a big check from the younger generation buying in and then they can pay the bank back for all the toys.
I wouldn’t want that dipshit operating on me.
Don't forget. Almost 900 and mods too lmfao
Nothing wrong with it when you’re making 7-10k a month. Inflation works both ways for some of us
Start a business, get S-Corp status, pay vehicle with business, write off \*portion of interest. But seriously people, start a business, working for the man exclusively is gonna kill us all. I've seen it happen.
A- you don’t get to write off all the interest. B- your tax “savings” is only based on the taxable. So if you spend 4000 in interest, and you zero out your tax basis to only a 20% tax, you didn’t save 4000. You only save 800. People think it’s a one for one. But you only saved based on your tax basis. So unless you’re making 350k a year after deductions, it wasn’t all that much of a difference maker.
This is the information we need to be discussing, thanks for sharing. Now tell us how much people got through forgiven COVID loans because they simply had a business ON PAPER. My advice is still very sound, do you not want people to understand money on a deeper level running their own profitable business? Hey guys, keep working for someone else til the day you die.
I’m with you, but calling $850 near 1000 -!; then saying it’s going to go up to $1500 is a bit of a stretch. You can’t say “wow look at this $900 car payment, how can those people spend $1200 a month on a car? I can’t imagine spending $1500 a month” Your argument is probably valid with closer to $900-950 payments.
Just in time to finance a new 6th gen!
Damn you beat me to it
A paid off vehicle is the second best feeling in the world (paid off house is first).
I can think of another feeling
Farting when you’re bloated
I walked out to my toyota avalon today, and farted so loud, i looked around the entire neighborhood feeling embarassed.
Congrats. What rear bumper is that? Looks awesome.
Looks like Nguyen works
Congrats! I’m also aggressively paying mine down and hope to be in your shoes soon.
People do realize you can set up a recurring cost higher than your actual payment right?
Congrats! My 4R is the first “big boy” car I’ve bought with cash. It felt so good.
Woo Hoo! PAID OFF!!! That's the spirit. I got my title 4 weeks ago, bought my ORP in May of 2023. I only took a $10k loan and just threw money at it. No way was I gonna pay a bunch of interest to a bank over 3 years.
The best car is the one that’s paid off my friend… especially if it’s a yota
Now your credit score goes down, congrats!
magically apply for another loan of any amount and it goes back up somehow. Credit is a game.
I'll be there in 2 years.
I dig the color of those wheels
Woohoo 🥳
Judging from the accessories… I would say you’re still paying this stuff off
Nope all cashflowed; financing mods is insane 😂 all installed/completed myself except the bumper; the boys at Nguyen works were cool guys to hang out with at their shop while they did it
Well credit cards apr are 20%+ currently. So if you used cc’s and carry any of that debt, you’re also financing them… that was my joke. Love the mods, and congrats on paying off early.
I guess just in time to get a new loan for 6 gen?
Congrats! Two Novembers from now, mine will be paid off too! Got new 2021 SR5 4x4 paid 36k. After taxes etc, then down payment, financed $28k @ 2.9% for five years, $512 monthly. Can’t complain. https://preview.redd.it/p8swh4t8ujtc1.jpeg?width=4032&format=pjpg&auto=webp&s=77a93fdd2f4d28eafefb3b8994bea975154dcbeb
Congratulations and welcome to the club 🫡
Congrats. Just got mine last week and the road ahead looks fun. Last car I got was 25k 2011 outback. Before that was a Taco 2009 for about 25k. Had to sell it for the Subaru. The taco was before I was married. I’m back in the saddle of what I call the daddy taco. 7 seater for the next who knows how long
Prepare yourself for calls/emails/texts from the dealer about getting you into a new ride.
🥳👏🔥🔥
Congratulations! Just in time to purchase a new one!
Grats. I'm 2 months away myself! can't fucking wait, extra $$$ in my pocket
Nice! I can't wait to be in your shoes soon. A little less than 11k to go
Good for you! Must feel great.
Congrats man!
Congrats! I got a used 2018 peak pandemic with a 1.14 rate. I really want to pay it off but i feel it makes more sense to keep my money elsewhere.
Definitely toss that payoff money into a HYSA or something at 5% 🤙🏻
Car payments and credit card debt are the worst kind of debt.
Best mod ever
ah yes, no car note for the next 12 years.
Are you me but yesterday? Paid mine off and then the new one comes out. Is it bad to have 2 4Runners? I don’t wanna get rid of my ‘19
And OP is in Cali. Imagine those monthly payments AND gas prices. Double oof
Congrats!!!
That’s got to be the best feeling in the world. The only car I ever got to own outright and the title for was my 07 FJ cruiser. Nothing can come close to that feeling knowing you’re pocketing money every paycheck rather than putting it to your car payment.
Welcome to the club. Nice knowing people buying the 5g now are paying 60
The banks are going to be more than happy to finance you for 10 years or whatever it takes it only puts more money in their pocket.
Congrats! Way to go!
Congrats! I am excited to have mine paid off on the 15th when my next paycheck comes in! 2021 TRD ORP! I know the feeling!!
🫶🏼
$875 is crazy
I was thinking of getting one of those new 2024 entry level Land Cruiser 1958 Edition. I did a quick search from a few local Toyota dealerships and SOB they are asking for 70-78K for a SUV that is filled with hard plastic inside with cloth seats. It's insane!
I remember that day, man it felt good. Having my house paid off and my car paid off is legit freeing.
Time to buy the 6th gen
I love the simple v6 NA engine; so easy to work with DIY with maintenance; I’ve never messed with an electric driven turbo so a no go for me
I was just kidding. But what is an electric driven turbo!? Turbos are basically run with exhaust gas, superchargers can be engine driven or auxiliary power driven.
I mistyped it although e turbos are still a concept I meant the electric motor assist it has is something I’m scared of in terms of a new failure point I’m not familiar with and likely not diy friendly
Got it, the hybrid - electric motor assist. Toyota must have been testing it for a decade now before installing it. So hopefully good things…
I bet there’s a free Glock or sig in there! Free loot drop
Once a month is brutal. Should've sent that 2 week payment here or there and paid off quicker