I was looking at a 4Runner and saw the monthly payment would be around $950. That’s way too high considering other options in the market. That also means Sequoia would be $1200 I guess. I could never justify Toyota with such high payments because, yes, they’re reliable but that’s about it. Extremely old tech and design. Am I missing something? I honestly would love a Land Cruiser but know it’ll be above $1k.
The problem is that interest rates on used cars are typically even worse, resulting in higher payments. Typically used car rates at my credit union right now are 11%. A new car is around 6%. A $50,000 car at 6% for 60 months is going to be a lower payment than a $30,000 car at 11% for 36 months which is typically the longest that they will let a used car loan term be now. This is even worse if you’re even considering the current used car market prices. To get a gently used car, you are paying almost new prices on it.
Why are you comparing different loan terms? 60 month is standard. My rate for a used vehicle is 5.25%, I assume OP’s credit isn’t abominable so 11% isn’t real. Match the rates and terms, the payment is lower. Plus…. You can put the same money down on either purchase, lowering payments further. They are not the same monthly payments whatsoever.