1. Welcome to 4Runners.com!

    You are currently viewing as a guest! To get full-access, you need to register for a FREE account.

    As a registered member, you’ll be able to:
    • Participate in all 4Runner discussion topics
    • Transfer over your build thread from a different forum to this one
    • Communicate privately with other 4Runner owners from around the world
    • Post your own photos in our Members Gallery
    • Access all special features of the site

Is a Toyota 4Runner a good (smart) purchase?

Discussion in 'General 4Runner Talk' started by riopolic, Mar 13, 2020.

  1. Mar 13, 2020 at 2:38 AM
    #1
    riopolic

    riopolic [OP] New Member

    Joined:
    Mar 13, 2020
    Member:
    #13518
    Messages:
    1
    Gender:
    Male
    Hello everyone,,

    Current Salary $75,000.00

    Student Loan Debt $9500.00 @ 3.49%

    Student Loan Debt $8500.00 @ 3.69%

    Housing: 0. My grandmother died, and left her condo to me. Paid off, HOA fees are $230/month, taxes $1200 annually mobdro lucky patcher kodi.

    No real assets, other than about $5k in an investment account. This is my first job post grad.

    Other annual expenditures $3500.00 for a social club - used for business, networking purposes.

    Credit score: 750+

    I am thinking of getting a used Toyota 4Runner, relatively new, 2014-2018 model with 50,000 or less miles. Under $31000.

    Based on my analysis, I can still contribute $6300 to my 401k (employer matches 5% of salary) This is 15% of my prorated salary. I can Make a down payment on the car, pay $2300 of my student loans, and still have over $13k in additional savings at year end. That factors in car payment, insurance, and down payment, as well as general living expenses, student loan payments and 401k contributions.

    I will plan on having this car for the next decade or so at least..
     
    Last edited: Mar 16, 2020
    Strandskov, Merlin84 and Thatbassguy like this.
  2. Mar 13, 2020 at 2:49 AM
    #2
    akmerle

    akmerle New Member

    Joined:
    Feb 16, 2020
    Member:
    #13161
    Messages:
    88
    Gender:
    Male
    Vehicle:
    2020 4Runner Pro + 2018 Platinum Tundra
    Based off planning to have it for 10 years plus, I would take advantage of the lower interest rates normally associated with new car purchases.

    A few key upgrades were made to the 2020’s that basically future proof (relative to Toyota) the vehicle for the next decade.

    Other question I have is what are you driving now? Not to get all Dave Ramsey, but you could just keep driving what you are now (assuming it is operating fine) and save another year so you can get a new vehicle. Or there is the option of a used 5’ish year old camry / Tacoma / 4 runner that you drive and then resell every couple years for very low cost of ownership.

    My vote is to get the new vehicle in the first place since you will be keeping it for 10-+ years. “Buy nice, or end up buying twice” is an old saying, but it is certainly true.
     
    7385, Merlin84 and Thatbassguy like this.
  3. Mar 13, 2020 at 5:08 AM
    #3
    Thatbassguy

    Thatbassguy New member? Really??

    Joined:
    Mar 27, 2019
    Member:
    #9314
    Messages:
    12,421
    Gender:
    Male
    First Name:
    James
    S/E Wisconsin
    Vehicle:
    2019 TRDORP, KDSS, MGM
    RSG sliders, Yakima offgrid basket, Pro-Comp wheels, SOS Streamline bumper and skids, Warn VR EVO10S winch + Ultimate Sidewinder, Bilstein 6112 + 5100 + rear lift coils, Rigid Dually SS ditch lights w/Caliraised brackets and OEM style dash switch
    I always think a 4runner is a good investment. :D

    It sounds like you have your financial situation in order. I say if you like it and can afford it, buy it! But, I'm a little impulsive myself.

    Welcome to the forum!
     
    7385 and Merlin84 like this.
  4. Mar 13, 2020 at 6:23 AM
    #4
    Agent_Outside

    Agent_Outside A Guy A Girl and A Trail

    Joined:
    Dec 18, 2018
    Member:
    #8098
    Messages:
    1,934
    Colorado
    Vehicle:
    Built 2011 T4R Limited
    Buying a newer vehicle is never a “smart” purchase, your spending a bunch of money on a depreciating item. Smart money buys a used well maintained Corolla and drives it into the ground.
     
    LimitedTrd likes this.
  5. Mar 13, 2020 at 6:25 AM
    #5
    Toffees

    Toffees Stuff and things

    Joined:
    Apr 22, 2019
    Member:
    #9616
    Messages:
    450
    Gender:
    Male
    First Name:
    Micah
    LA
    Vehicle:
    16 LE
    Ok, assuming you are relatively young and no kids, based on expenses and how you frame the questions, a few observations:

    1) Your income is relatively high
    2) Your debt is extremely low
    3) Your assets are non-existent (6-months income as savings post tax would be ~27k)

    So either you've been in the workforce not long, or you haven't figured out how to save money. Either way, the 4R is a great purchase, but learning how to save and spend prudently before major expenses hits is very important.
     
    7385 and 4Run Like An Antelope like this.
  6. Mar 13, 2020 at 6:25 AM
    #6
    Toffees

    Toffees Stuff and things

    Joined:
    Apr 22, 2019
    Member:
    #9616
    Messages:
    450
    Gender:
    Male
    First Name:
    Micah
    LA
    Vehicle:
    16 LE
    True, but this is a car forum, not an investment forum. Everything is a tradeoff.
     
  7. Mar 13, 2020 at 6:29 AM
    #7
    mcat707

    mcat707 MURDERED TRD

    Joined:
    Dec 6, 2019
    Member:
    #12235
    Messages:
    330
    Gender:
    Male
    NOR*CAL - Solano County
    Vehicle:
    2015 TRDPro - Attitude Black Metallic 218
    The “smart” move is to payoff all your loan debt or any debt that you may have, then buy a T4R. But knowing myself, I’d probably buy a T4R before paying all that off.
     
    7385 and Merlin84 like this.
  8. Mar 13, 2020 at 6:31 AM
    #8
    Toffees

    Toffees Stuff and things

    Joined:
    Apr 22, 2019
    Member:
    #9616
    Messages:
    450
    Gender:
    Male
    First Name:
    Micah
    LA
    Vehicle:
    16 LE
    But the loan rates are lower than a car note, so all things equal that's a waste of money.
     
  9. Mar 13, 2020 at 6:52 AM
    #9
    Merlin84

    Merlin84 New Member

    Joined:
    Feb 20, 2020
    Member:
    #13223
    Messages:
    22
    Gender:
    Male
    First Name:
    Jared
    Vehicle:
    2020 Gray Venture Edition
    I would buy a new T4R as well (I got a 5th gen last month), it is my 2nd 4R, I've had a 4th gen for 17 years. I'm in a much different place in life than you are, but you can never go wrong with having a new car, with a lower interest rate, and mfg warranty. Plus, I just never trust how other people have treated their vehicles.

    On that note, what is pushing you towards the 4R? There are other vehicles that are just as reliable and more affordable.
     
  10. Mar 13, 2020 at 6:55 AM
    #10
    mcat707

    mcat707 MURDERED TRD

    Joined:
    Dec 6, 2019
    Member:
    #12235
    Messages:
    330
    Gender:
    Male
    NOR*CAL - Solano County
    Vehicle:
    2015 TRDPro - Attitude Black Metallic 218
    What’s a waste of money is paying interest. If someone is capable of paying a loan off or saving enough cash to buy a purchase out right with no interest involved, that’s usually a smart move regardless how low the rate is. If you look at all the interest you paid, then think about what you could have done with that amount and putting it in some kind of investment or IRA, etc.
     
    Merlin84 likes this.
  11. Mar 13, 2020 at 7:26 AM
    #11
    Merlin84

    Merlin84 New Member

    Joined:
    Feb 20, 2020
    Member:
    #13223
    Messages:
    22
    Gender:
    Male
    First Name:
    Jared
    Vehicle:
    2020 Gray Venture Edition
    I can see your point here, but if you have the money to buy a car outright, you could also put that in a high yield investment account. Again, hard to put $40-$50K into a depreciating asset (in my opinion, I'm not a finance guy). That's the reason we haven't paid off our cars and house.

    At this point in my life, I've come to the realization that I like cars too much, and will probably always have a car payment, haha.
     
    mcat707[QUOTED] likes this.
  12. Mar 13, 2020 at 7:31 AM
    #12
    mcat707

    mcat707 MURDERED TRD

    Joined:
    Dec 6, 2019
    Member:
    #12235
    Messages:
    330
    Gender:
    Male
    NOR*CAL - Solano County
    Vehicle:
    2015 TRDPro - Attitude Black Metallic 218
    I totally get what you’re saying. You have to pay to play. That’s the decision that the OP or anyone else would need to think about when making any purchase. Most of the financial moves that people make are not smart. Over my lifetime, I can attest to that.
     
    Toffees and Merlin84[QUOTED] like this.
  13. Mar 13, 2020 at 7:42 AM
    #13
    Tylandus

    Tylandus New Member

    Joined:
    Sep 1, 2017
    Member:
    #4687
    Messages:
    92
    Gender:
    Male
    First Name:
    Ryan
    Vehicle:
    Former Taco owner. 2019 4Runner SR5 Premium/3rd row.
    I bought my 19 new and financed about 20k on 4.x% and added a couple warranty type options. Yielded about a $430/month payment. Higher than I ever thought I would have in a single car payment, but doable for my family.

    Sounds like you are in a decent spot to buy a newer preowned truck to me. This is of course, assuming we don't get a president in office any time soon who wants to tax the majority of the US workforce half their income. We'll almost all be on the streets should that happen.
     
    Merlin84 likes this.
  14. Mar 13, 2020 at 7:56 AM
    #14
    Toffees

    Toffees Stuff and things

    Joined:
    Apr 22, 2019
    Member:
    #9616
    Messages:
    450
    Gender:
    Male
    First Name:
    Micah
    LA
    Vehicle:
    16 LE
    It's really simple math. Car loans are around 4.75%, give or take changes due to our current round of QE. OP's loan rates are around 3.5%. 4.75% > 3.5% so he should never pay extra on the student loan before he pays extra on the car note. Whether he should pay cash for the car or finance it is a different question, and worth considering, but it's not really hard to determine that he should *not* pay off his student loan debt ahead of paying off his (future) car note.
     
  15. Mar 13, 2020 at 7:57 AM
    #15
    4Run Like An Antelope

    4Run Like An Antelope Everything is everything and nothing is too!

    Joined:
    Mar 3, 2020
    Member:
    #13389
    Messages:
    165
    Gender:
    Male
    First Name:
    Mark
    Louisville, KY
    Vehicle:
    2020 Magnetic Gray Metallic SR5 Premium
    Blackout Emblem Overlays TRD Pro Grille 17-in. TRD Matte Black Wheels 265/70R-17 BFG KO2 Tires RSG Angled Sliders With Top Plate RCI Aluminum Skid Plates Bilstein 5100 Shocks Gobi Stealth Roof Rack
    Do you currently have a working car? If so I’d recommend you hold off on purchasing a new vehicle. I feel that you need to pay off your student loans and build a cash reserve for unexpected emergencies. Financial advisors typically recommend that you have savings available to cover at least 6 months of expenses. It sounds like you have a good job based on your salary but if you lose it for some reason (I know that the stock market isn’t the economy but the Dow just had it’a worst day since 1987 and no one knows how COVID-19 will play out - my employer just directed all employees to work from home until further notice) and have no savings you’ll be in a difficult spot. But you’re asking for financial advice on a car forum so this is just like my opinion man.
     
    Strandskov and Tylandus like this.
  16. Mar 13, 2020 at 8:01 AM
    #16
    Toffees

    Toffees Stuff and things

    Joined:
    Apr 22, 2019
    Member:
    #9616
    Messages:
    450
    Gender:
    Male
    First Name:
    Micah
    LA
    Vehicle:
    16 LE
    Similar, but slightly more aggressive, advice:

    Spend the next 6 months aggressively adding to your cash savings and aggressively investing in the currently downtrodden markets. In 12 months, if you've got huge returns on your investments, cash out your gains and use that as a down purchase payment on your 4R.

    *But resist the urge to build it out, or else you'll burn through all of your savings!*
     
    Last edited: Mar 13, 2020
  17. Mar 13, 2020 at 8:05 AM
    #17
    mcat707

    mcat707 MURDERED TRD

    Joined:
    Dec 6, 2019
    Member:
    #12235
    Messages:
    330
    Gender:
    Male
    NOR*CAL - Solano County
    Vehicle:
    2015 TRDPro - Attitude Black Metallic 218
    Yes it is simple math and after looking at the titled question of the OP and also posting my opinion on what the smart decision would be, (assuming the OP currently has reliable transportation that is paid off or has a way of getting to work) paying interest when you can pay the loan off if you’re capable is usually a not a “smart” move.
     
  18. Mar 13, 2020 at 8:15 AM
    #18
    Toffees

    Toffees Stuff and things

    Joined:
    Apr 22, 2019
    Member:
    #9616
    Messages:
    450
    Gender:
    Male
    First Name:
    Micah
    LA
    Vehicle:
    16 LE
    Q1: should OP buy a vehicle or not
    Q2: should OP finance the vehicle
    Q3: should the OP pay smaller interest debt ahead of larger interest debt

    A1: up to OP
    A2: depends on situation and prudence, always best to have less debt
    A3: only rarely does this make sense
     
  19. Mar 13, 2020 at 2:49 PM
    #19
    Gamma Ray

    Gamma Ray Be excellent to each other

    Joined:
    Feb 24, 2020
    Member:
    #13277
    Messages:
    1,454
    Gender:
    Male
    Vehicle:
    2020 SR5 Barcelona Red
    Who cares? This never shows everything anyway.
    Ignoring much of the financial stuff for a moment, I bought the 4runner because it's an extremely reliable vehicle. I'm planning on keeping it for a long, long time. With proper maintenance, it should last as long as I imagine, as it has for many other people. In my view, it was a lot of money up front, but I'm expecting it to save me money in the long run. Yes, buying it new is buying a depreciating asset, but if you're going to sink costs in a vehicle, then you might as well make sure those sunk costs pay off in other ways, such as reliability.

    If you're thinking about buying a 4runner in terms of reliability, it's not a bad option. However, like everyone up above says, make sure you're well off enough to buy one. 4runners aren't cheap, after all.
     
  20. Mar 13, 2020 at 3:22 PM
    #20
    LimitedTrd

    LimitedTrd New Member

    Joined:
    Aug 14, 2018
    Member:
    #6750
    Messages:
    56
    Gender:
    Male
    You should get a rav4 or corolla or even a highlander. The money you would save on gas and payment over a 4Runner can be used to pay off your loans more quickly and you will be able to start saving up sooner. Sometimes I do regret about buying a 4Runner and wish I could get a Rav4 or highlander instead since I rarely off road and I spend 99% of the time on highway everyday. Plus,most off road worthy places are at least 4-5 hours away from my area.
     
    7385 likes this.
  21. Mar 13, 2020 at 3:40 PM
    #21
    Dillusion

    Dillusion New Member

    Joined:
    Dec 10, 2018
    Member:
    #7998
    Messages:
    2,687
    Gender:
    Male
    First Name:
    KYle
    Vehicle:
    2018 TRD OR
    If you think you can afford it just do it.

    But I feel only putting money into a 401k as your only savings is not a good idea either. Not saying to reduce the contribution. But I throw 3% into my 401k but I also throw $250/week into my savings for when you need cash. Just remember cash is still king.
     
    Strandskov likes this.
  22. Mar 13, 2020 at 5:46 PM
    #22
    xyzzy

    xyzzy New Member

    Joined:
    Apr 22, 2019
    Member:
    #9619
    Messages:
    193
    At the lake
    Vehicle:
    2019 Barc. Red TRD ORP
    Eliminate debt before financing "wants". Period.
    If you need transportation in the form of a traditional vehicle, there are so many better options than a 4Runner.
    Pay for your needs, but don't confuse "needs" with "wants".
    Live happily ever after.
     

Products Discussed in

To Top