My 4runner got better looking on Monday
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sharp4runr
New member
haha congrats, I'm looking forward to that with mine! having no car payments is awesome.
Scout Av8er
New member
congrats
on that BEAUTIFUL 4Runner
on that BEAUTIFUL 4Runner
Thanks guys, with only 21k miles I feel like the old Toyota slogan from the 80's...."oh, what a feeling". I hope to buy my next vehicle in cash as well. This is my first time without a car payment in 16 years.
A girl I work with drove a 2002 suburban and had 38000 miles on it when something took the steering out while she was driving on the highway. It wasn't just the power steering but the steering itself. To make a long story short they said they have heard of the problem before but it was not a recall at this point and and since she was 2k miles over warranty, $5000 to fix please. She ended up compounding her mistake by getting a brand new suburban instead of switching over to a toyota. Her payments are $50 a month higher, payoff date is extended 2 years, and insurance went up. Sorry about her luck!
A girl I work with drove a 2002 suburban and had 38000 miles on it when something took the steering out while she was driving on the highway. It wasn't just the power steering but the steering itself. To make a long story short they said they have heard of the problem before but it was not a recall at this point and and since she was 2k miles over warranty, $5000 to fix please. She ended up compounding her mistake by getting a brand new suburban instead of switching over to a toyota. Her payments are $50 a month higher, payoff date is extended 2 years, and insurance went up. Sorry about her luck!
Congratulations!
Congratulations That's a BIG first step.
Now, do the smart thing and keep making those payments - to a savings account. If you stick to this and don't touch the money for other things, you should be able to write a check for your next new car and save many thousands in interest you don't pay.
We paid off our first new car in 1969 (it was a '66 Chevelle SS 396) and kept paying ourselves. We've paid cash for all our new cars since, have saved tens of thousands of dollars in interest and have had the satisfaction of really owning all our new cars.
You've now done the tough part. From here on, all it takes is a bit of resolve. Good luck.
Congratulations That's a BIG first step.
Now, do the smart thing and keep making those payments - to a savings account. If you stick to this and don't touch the money for other things, you should be able to write a check for your next new car and save many thousands in interest you don't pay.
We paid off our first new car in 1969 (it was a '66 Chevelle SS 396) and kept paying ourselves. We've paid cash for all our new cars since, have saved tens of thousands of dollars in interest and have had the satisfaction of really owning all our new cars.
You've now done the tough part. From here on, all it takes is a bit of resolve. Good luck.
Hitman
New member
ToyotaDoodz said:I wrote a check for my last three vehicles and the look on the sales manager's face was worth it each time.
I once traded in a BMW on a brand new Acura and ended up getting an $8000 check from the Acura dealer in addition to the new Acura.
The salesman said he never had to cut a check to a customer when selling a new car before!
Also, I ended up paying zero in sales tax on the Acura.
Colemanfu
New member
2nd that on still makeing payments to the savings. Did the same for 4 years after my Ranger was payed off and got my 1st Yota. and love it. I saved alomost 20K! I was thinking about putting it all down but I got a lower %rate the more I borrowed. My 1st payment I gave up a check for more than 1/2 the cost fo the new car. I have 2 more years and it is payed off. Only 11,000 miles after the 1st year. So I am hoping with the low milage in 2 years will give me more re-sale (I hope). I really wanted a LC so that could be my next ride after saving for a year after it's payed off.
boston_kevin
New member
one exception about paying cash
If you can get a rate a 0%, it actually costs you money to pay the car up front. I got a 36 month 0% for my 4Runner and invested the rest of the cash. I put down $15k put the remaining $12k in stock. I'm currently up ~8%.
Most of the time, it is better to pay in cash (besides, the looks on the dealer's faces are priceless).
If you can get a rate a 0%, it actually costs you money to pay the car up front. I got a 36 month 0% for my 4Runner and invested the rest of the cash. I put down $15k put the remaining $12k in stock. I'm currently up ~8%.
Most of the time, it is better to pay in cash (besides, the looks on the dealer's faces are priceless).
You guys all seem really good with personal finance. I am struggling with the idea of paying off my mortgage early when the rate is 5.5% and probably more like 4% after the tax deduction is considerd. With the $ I have available per month I could pay the whole thing off in about 38 months but I am not sure if that is the right thing to do with the money. I have heard all sides of the argument and am still confused about it. Would love to have my fixed monthly payments down to nothing except prop taxes and insurance.
boston_kevin
New member
mortgage buyout
There really isn't a simple answer here...
If you payoff the entire mortgage in 38 months, you will save $X in interest. If you don't pay it off, you continue to save $Y in tax deductions for the mortgage interest paid. The problem of $X - $Y is not as simple as it seems though... You also have to think about if you took the money to pay off your mortgage and invested it sooner, would you get a greater return on your investment rather than buying out the mortgage on your house. Especially when the market is in the state that it is in today (buyer's market).
I pay off 18 mortgage payments in 12 months, thereby reducing the overall interest of the mortgage over the length of the mortgage and increasing my principle. This allows me to have some additional $$ for investments, entertainment (fun), and emergencies without much sacrifice. Obviously I am taking a bigger hit on the mortgage interest than if I paid more, but for me, owning a house means I make payments. If I sell the house in a couple of years, it adds up to more $$ in my pocket because of the increased principle I paid off.
Short answer: It is a personal decision.
There really isn't a simple answer here...
If you payoff the entire mortgage in 38 months, you will save $X in interest. If you don't pay it off, you continue to save $Y in tax deductions for the mortgage interest paid. The problem of $X - $Y is not as simple as it seems though... You also have to think about if you took the money to pay off your mortgage and invested it sooner, would you get a greater return on your investment rather than buying out the mortgage on your house. Especially when the market is in the state that it is in today (buyer's market).
I pay off 18 mortgage payments in 12 months, thereby reducing the overall interest of the mortgage over the length of the mortgage and increasing my principle. This allows me to have some additional $$ for investments, entertainment (fun), and emergencies without much sacrifice. Obviously I am taking a bigger hit on the mortgage interest than if I paid more, but for me, owning a house means I make payments. If I sell the house in a couple of years, it adds up to more $$ in my pocket because of the increased principle I paid off.
Short answer: It is a personal decision.
greasefingers
New member
I fortunate to get a 0 % for five years at the dealer. But I had to pay sticker price to get the zero percent.
sharp4runr
New member
jazzy jae said:
Yup, I have a little more than 4 years to go. I wouldn't call it the stupid decision I've ever made, since this is the first new vehicle I've ever owned. I've always purchased used vehicles and now that I make good money, I feel I deserve the treat. Also, I'm 24
trdcorolla
New member
jazzy jae said:
I'm just like jazzy jae, I have 5 years to go and i'm 23 years old too! I haven't even made my first payment yet!
BTW, I drove home my 04 Limited 4Runner V8 on 11/5/2004!
ToolmanJohn
New member
Re: one exception about paying cash
I agree 100%. If you get zero % rate, it does NOT make sense to pay up front for the vehicle. You can have all that money sitting in a nice account gathering interest for YOU, and still make small payment on the vehicle in comparison. But usually there are trade offs for that rate such as higher sale price, or very short time terms on the loan (24-36 months).
And just so no-one brings it up, I'm talking Toyota here, not GM, Chrysler, Ford, who have to practically give their vehicles away with huge discounts and 6 year zero interest rates.
Personally, I bought the 4runner because I needed a larger vehicle (homeowner) for moving and picking up stuff, towing ability for a small utility trailer, reliablility, and 4WD.
boston_kevin said:
I agree 100%. If you get zero % rate, it does NOT make sense to pay up front for the vehicle. You can have all that money sitting in a nice account gathering interest for YOU, and still make small payment on the vehicle in comparison. But usually there are trade offs for that rate such as higher sale price, or very short time terms on the loan (24-36 months).
And just so no-one brings it up, I'm talking Toyota here, not GM, Chrysler, Ford, who have to practically give their vehicles away with huge discounts and 6 year zero interest rates.
Personally, I bought the 4runner because I needed a larger vehicle (homeowner) for moving and picking up stuff, towing ability for a small utility trailer, reliablility, and 4WD.
