Hello all. I'm about to begin saving money for a truck that I'll purchase in 2024. 24 is my favorite number, so I'll most likely be purchasing new, but I'll consider anything down to 2020... but I digress. I'm considering a few different options to add a few extra dollars to a down payment.
Quick background: I'm looking for a midsize truck: Canyon, Colorado, Ranger and Tacoma (or a Frontier if they redesign before 2024). I'll be trading in a 2017 Highlander. The GMC Canyon is my current favorite.
This is a 2 parter. The first part is how to generate the most cash back. I'm going to apply all the cashback I earn for the next 4 years.
Option 1: open a GMC card to earn the 5% on first $5,000 each year. This'll net me $1,000 but force me to commit to the Canyon and Colorado.
Option 2: open a Discover It Miles and get the 3% cashback and use it on everything for the first year. Then use my 2% for everything that isn't a 5% rotator.
The second part: where to put my money? I'm considering using Discover for a savings account, since their APY is 1.5% currently. This is much better than my PSECU savings of .2%, and even matches their 5 year CD. I only will be saving for 4 years, so I'm thinking that an online bank like Discover might be the best bet. I don't want to lock up my money for 4-5 years when the savings rate at Discover is currently the same or better. I do understand that savings rates can change and a CD will lock it in.
Anyone have any comments on a plan? I'm leaning towards staying the course with my current cards and depositing any cashback into a Discover account. I'm still in a first year of my 5% Discover, so when they is done in August, I think I'll open a Miles card.
@TSlop, I wont get into to much, as you have a long list
I have had years of experience with new and used cars and also purchased for a fleet from a Ford dealership.
1) Used car loans are almost always higher. (APR)
2) It is a fact that dealers make more money on used car/truck sales than new.
3) Sometimes what you would pay more for a new truck/car would be offset by a lower interest rate.
4) Get quotes for new vehicles online. almost every dealer has an Internet manager.
5) You can sometimes find a good deal on year end clearance sale and also Holidays are a good time to buy.
Keep in Mind a "NEW" vehicle will carry a real nice warranty. (could be priceless)
I at one time knew the exact make and model vehicle I wanted, went to the dealer,
asked for the Fleet or Internet Manager (Regular Salesman did not really like that)
They got Me to the Internet Manager,
I said "I found the exact vehicle I want ..make, model & color and you have it on the lot!"
I also told Him "I am a no nonsense person and really hate to haggle on price
if you will sell me the year end model for $500.00 over your cost,
I will buy it right now, as long as you show Me in the book dealer cost."
Well, He looked at Me, and knew I was serious, pulled out the dealer book,
showed me how much and when they had purchased the vehicle.
He looked at Me, put out His hand to shake mine and said "you just got a deal"
I drove The Vehicle home within an hour of when I walked in.
Hope some of this will help you!
edited for spelling error
Thanks for the information. I wasn't really looking for buying tips, just recommendations on the best ways to gather cashback and where to put my money. But your response about going in right away with a $500 offer like that is an interesting approach that I've never considered. I've went in and got invoice cost before but I'm pretty sure that's above the dealer cost. I might try something similar to you if I can't find a good price online.
I feel like Toyota won't offer those big MSRP discounts like Ford and GM. Then again, I the midsize truck market is probably hot and might not get those massive manufacturer discounts.
Ha, I gave the buying tips as I figured @AllZero would chime in and help with your other question's?
Hope it works out for Ya
@M_Smart007 wrote:Ha, I gave the buying tips as I figured @AllZero would chime in and help with your other question's?
Hope it works out for Ya
I'm surprised AllZero hasn't chimed in yet! 
@M_Smart007 wrote:@TSlop, I wont get into to much, as you have a long list
I have had years of experience with new and used cars and also purchased for a fleet from a Ford dealership.
1) Used car loans are almost always higher. (APR)
2) It is a fact that dealers make more money on used car/truck sales than new.
3) Sometimes what you would pay more for a new truck/car would be offset by a lower interest rate.
4) Get quotes for new vehicles online. almost every dealer has an Internet manager.
5) You can sometimes find a good deal on year end clearance sale and also Holidays are a good time to buy.
Keep in Mind a "NEW" vehicle will carry a real nice warranty. (could be priceless)
I at one time knew the exact make and model vehicle I wanted, went to the dealer,
asked for the Fleet or Internet Manager (Regular Salesman did not really like that)
They got Me to the Internet Manager,
I said "I found the exact vehicle I want ..make, model & color and you have it on the lot!"
I also told Him "I am a no nonsense person and really hate to haggle on price
if you will sell me the year end model for $500.00 over your cost,
I will buy it right now, as long as you show Me in the book dealer cost."
Well, He looked at Me, and knew I was serious, pulled out the dealer book,
showed me how much and when they had purchased the vehicle.
He looked at Me, put out His hand to shake mine and said "you just got a deal"
I drove The Vehicle home within an hour of when I walked in.
Hope some of this will help you!
edited for spelling error
Mr. Smarty Pants is ALL business!!
Thanks, I'll check out BECU.
I think I'm probably set on the cashback routes. I don't think anyone would recommend locking in my cashback to GM anyway for the extra couple % and I already get 5% between Chase and Discover. I think I'll just open a Discover Miles and later maybe a CFU for another $200 to my URs.
@Anonymous wrote:
@M_Smart007 wrote:Ha, I gave the buying tips as I figured @AllZero would chime in and help with your other question's?
Hope it works out for Ya
I'm surprised AllZero hasn't chimed in yet!
@Anonymous @M_Smart007 I was a little pre-occupied, opening an account at Redstone.
@AllZero wrote:
@Anonymous wrote:
@M_Smart007 wrote:Ha, I gave the buying tips as I figured @AllZero would chime in and help with your other question's?
Hope it works out for Ya
I'm surprised AllZero hasn't chimed in yet!
@Anonymous @M_Smart007 I was a little pre-occupied, opening an account at Redstone.
Congrats! .. on your new account there .. slowpoke
