The best advice I can give everyone is go to your bank or credit union before you talk to the dealer. Find what you want, go to your loan officer and start the process that way. They will work with the dealer and you can show up with a check and just drive away and you will know exactly what you are looking at , loan wise, before you go to the dealership.
Great discussion points! This is the kind of stuff they should be teaching in schools to prepare people for life in general. Purchase what you can afford, at a fair price and own it forever!
Only thing to add is long loan terms can be used as a tool/safety net, and I absolutely push the terms out as much as possible. The reason is, I pay on the loan based on a a shorter term (ie 1.5x or 2x) and base my budget for a larger amount every month. But if something happens such as losing your job, you can temporarily move to the much lower amount and free up funds for other things that are more urgent. Just watch out for any early payoff penalties in some loans, otherwise it is a great way to go. My formula is similar. 10 years old, and around 100-125k Toyota's.
Sure, you can do that. I don’t know that most people can accomplish or stick to that, the same way many people people end up carrying a balance on their credit cards. The math is the math - the longer you stretch out your payments, the worse your interest rate, the worse the depreciation, etc etc, the more money you’re throwing away. Minimize that. I’d likely pick an aggressively short loan if it was up to me, but I take your point.
Agreed. To your point earlier, many just focus on the payment amount and not the duration which is a common tactic with dealers. I would much rather pay off a loan in say 3 years, but have the terms actually out further like 6 years as a safety net. So if I had to, I can technically move to the lower payment temporarily so it doesn't take more of my emergency fund if I lose a job etc. Where this gets nullified is if you get an increase in interest just to carry longer terms. So it's a balance. But mainly I just wanted to point out that you can still use longer terms, but to your advantage (but not as a crutch).
Been a vehicle owner for 40 years great points only thing your missing is additional maintenance cost on older vehicles especially if people unable to do the work themselves, that 10 year Tacoma that has been used by a person with no intentions of keeping long term then used over landing or rough roads, good luck with that
Vehicle maintenance varies widely. Ya. A lot of used cars are more expensive to maintain. But, when you buy a used car at the bottom of its depreciation curve, your maintenance dollars are at least going towards a relatively stable asset as opposed to a rapidly depreciating new vehicle, which is adding insult to injury when you have to repair broken things
I have met young guys like this. It’s takes getting burned a couple times for them to learn. Sadly some never do. Thanks for the video it’s spot on about interest and depreciation. I wish they taught this in schools instead of the BS they do now
100% agree. Only anomaly is I had a friend on a 2020 ford f250 and he only lost $2000 when he sold it in 2022. This was probably due to covid supply issues. Personally I usually end up selling for what I bought for after 2 yrs 20,000 miles. I bought a 08 tundra in 2020 for 8k and sold it in 2023 for 14k
Couldn't find a Tacoma for a decent price when I sold my 2006 GX470 last year. That's why I have a 1994 Landcruiser 80 that I picked up last year. Considering doublecab first gen Tundra, but couldn't find one of those for a decent price either. I own my vehicles and any money I spend goes to maintenance, insurance, and trips. Funny you said: "if you add $500 worth of mods", then mentioned bumpers, sliders, wheels. That's probably more like $5000.
Tyler Ramsey? :) nice job man, preach the good word. Find the best used car for known longevity and plan on reg maintenance. Just don’t be a dork and buy a bunch of expensive parts for your 20 year old pickup😂
Its wild that people want to just have stuff instead of money in the bank. Like im not cheap, but im not spending 800-900 a month on a vehicle that is gunna be worth half of what i paid for it in a year or 2. hell, i wont even spend 500 a month.
The creator has continued to post and seems to own the truck and actually be in this spot. I tossed this reel into the beginning of my video, I found it right after I had finished filming the what is now back half, and it’s a good segue into what I wanted to talk about, which is financing. Whether the terms/details/payments are exaggerated in the reel, this guys still getting reemed financially by getting a new vehicle.
This specific instance may not be real (I have no idea if it is or not), but things like this are happening every day in real life. I have heard of several people who owe $80-$90k on a $60k car because they rolled in negative equity from previous poor decisions. Tyler is using this as a tool to give information and to educate others, and I don't have a problem with that.
Old toyotas for cash are the way. Buy what you can afford. That’s what I did!
Absolutely! That’s what I did too haha
The best advice I can give everyone is go to your bank or credit union before you talk to the dealer. Find what you want, go to your loan officer and start the process that way. They will work with the dealer and you can show up with a check and just drive away and you will know exactly what you are looking at , loan wise, before you go to the dealership.
Don’t borrow money for depreciating assets
Great discussion points! This is the kind of stuff they should be teaching in schools to prepare people for life in general. Purchase what you can afford, at a fair price and own it forever!
Thanks man! Spot on. What young people could do (and avoid doing with their money) if they learned this in school would be tremendous.
Only thing to add is long loan terms can be used as a tool/safety net, and I absolutely push the terms out as much as possible. The reason is, I pay on the loan based on a a shorter term (ie 1.5x or 2x) and base my budget for a larger amount every month. But if something happens such as losing your job, you can temporarily move to the much lower amount and free up funds for other things that are more urgent.
Just watch out for any early payoff penalties in some loans, otherwise it is a great way to go.
My formula is similar. 10 years old, and around 100-125k Toyota's.
Sure, you can do that. I don’t know that most people can accomplish or stick to that, the same way many people people end up carrying a balance on their credit cards.
The math is the math - the longer you stretch out your payments, the worse your interest rate, the worse the depreciation, etc etc, the more money you’re throwing away. Minimize that.
I’d likely pick an aggressively short loan if it was up to me, but I take your point.
Agreed. To your point earlier, many just focus on the payment amount and not the duration which is a common tactic with dealers. I would much rather pay off a loan in say 3 years, but have the terms actually out further like 6 years as a safety net. So if I had to, I can technically move to the lower payment temporarily so it doesn't take more of my emergency fund if I lose a job etc.
Where this gets nullified is if you get an increase in interest just to carry longer terms. So it's a balance. But mainly I just wanted to point out that you can still use longer terms, but to your advantage (but not as a crutch).
Been a vehicle owner for 40 years great points only thing your missing is additional maintenance cost on older vehicles especially if people unable to do the work themselves, that 10 year Tacoma that has been used by a person with no intentions of keeping long term then used over landing or rough roads, good luck with that
Vehicle maintenance varies widely. Ya. A lot of used cars are more expensive to maintain.
But, when you buy a used car at the bottom of its depreciation curve, your maintenance dollars are at least going towards a relatively stable asset as opposed to a rapidly depreciating new vehicle, which is adding insult to injury when you have to repair broken things
It’s basic knowledge. Not rocket science. Adjusting the valve used to be common knowledge and now people can’t change a tire
I have met young guys like this. It’s takes getting burned a couple times for them to learn. Sadly some never do. Thanks for the video it’s spot on about interest and depreciation. I wish they taught this in schools instead of the BS they do now
Yup, sometimes lessons are learn the hard way. Thanks for commenting!
Ouch 7:19 98’ 4Runner is my daily. That hurt 🤕
I drive an 01! Nothing wrong with 20 year old vehicles, I just know most people aren’t going to drive them anymore
Buying a good used vehicle outright, not financing it, and keeping it for 10+ years is even better.
Absolutely! That is the ideal thing to do
See you on the trails Tyler 👍🏼 love driving the T150 until it dies or even past that. An engine sounds cheaper than a monthly payment
T150 for life! Haha
100% agree. Only anomaly is I had a friend on a 2020 ford f250 and he only lost $2000 when he sold it in 2022. This was probably due to covid supply issues.
Personally I usually end up selling for what I bought for after 2 yrs 20,000 miles. I bought a 08 tundra in 2020 for 8k and sold it in 2023 for 14k
Every once in a while, a good used vehicle will keep up with inflation, which is fun.
Couldn't find a Tacoma for a decent price when I sold my 2006 GX470 last year. That's why I have a 1994 Landcruiser 80 that I picked up last year. Considering doublecab first gen Tundra, but couldn't find one of those for a decent price either.
I own my vehicles and any money I spend goes to maintenance, insurance, and trips.
Funny you said: "if you add $500 worth of mods", then mentioned bumpers, sliders, wheels. That's probably more like $5000.
Toyotas are expensive, but, they hold value well when they’re
Great Video! Just shared it with family. Btw i also own a 2000 Tundra 4x4, i appreciate your channel
Thank you, and thanks for sharing the video!
Nice, that’s a great find, mines an 01. Glad you’re finding valuable stuff on my channel.
Tyler Ramsey? :) nice job man, preach the good word. Find the best used car for known longevity and plan on reg maintenance. Just don’t be a dork and buy a bunch of expensive parts for your 20 year old pickup😂
Thanks!
Yup. Vehicles are an expensive game - be picky and be realistic.
Most of the op’s other content is trolling. He is a true genius
I can’t tell if the recent content is trolling or him realizing that making bad financial decisions result in internet virality
Id never roll debt onto a new car. He’s gonna be paying on that Tacoma forever.
It’s a really tough way to go
Its wild that people want to just have stuff instead of money in the bank. Like im not cheap, but im not spending 800-900 a month on a vehicle that is gunna be worth half of what i paid for it in a year or 2. hell, i wont even spend 500 a month.
crazyyyyy.... tacoma is super expensive
Ya! They hold value and prices stay high
Real talk buy an old truck with cash they are more reliable anyway. And less money in maintenance if you get some with a 2UZ or that era...
Yup! It's really the way to go
Scary. 🥶
Yup!
Boy got 3 cars notes on 1 😂.
Common sense, great video as always!
Thank you!
Make ONE payment on your vehicle
If you think this is unrealistic, rage bait, and fake, why promote it and engage?
The creator has continued to post and seems to own the truck and actually be in this spot.
I tossed this reel into the beginning of my video, I found it right after I had finished filming the what is now back half, and it’s a good segue into what I wanted to talk about, which is financing.
Whether the terms/details/payments are exaggerated in the reel, this guys still getting reemed financially by getting a new vehicle.
This specific instance may not be real (I have no idea if it is or not), but things like this are happening every day in real life. I have heard of several people who owe $80-$90k on a $60k car because they rolled in negative equity from previous poor decisions. Tyler is using this as a tool to give information and to educate others, and I don't have a problem with that.
Thank you sir! Well said