I’m 25M and own a paid-off 1997 Toyota Corolla with 120k miles that still runs well. I’m living at home and saving to buy a house within the next 1-2 years. I have $55k saved in a HYSA for a down payment, with homes in my area priced around $200-250k. I make $70k/year in a low-cost-of-living area.
I’ve been considering buying a truck, specifically a ~2020 F150 (~$25k), for hobbies like kayaking, snowboarding, and dirt biking. I currently rely on others for transportation for these activities and want more independence. I’d keep the Corolla for commuting but use the truck for hobbies and house-related tasks once I buy a home.
I could pay cash or finance with $5k down, resulting in ~$400/month payments. My main concern is whether buying the truck now will significantly impact my ability to achieve my homeownership goal. Would this be a financially unwise decision? I appreciate your insights.
Ford Maverick exists, and it might suit your needs without the bulk or cost of a full-size truck. That said, you might want to prioritize buying a house first.
I ran your numbers, and financing the truck would reduce your home affordability from ~$260k to ~$204k. Hold off on the truck until after you buy the house.
A house is a better investment. Between a 20% down payment, closing costs, and furnishing, you’ll need at least $75k saved to make homeownership comfortable. Hold off on the truck until after the house.
If you buy a truck, you’ll probably end up using it as your daily driver, and your Corolla will sit unused. Consider whether that’s what you really want.