Originally Posted by
TGS
If you're, 1) saving 20% of your gross income for retirement and can continue doing so with the new car payment, 2) have 3-6 months in liquid assets for emergencies, and 3) have no debt other than a mortgage, I say go for it.
If those three things aren't fulfilled, I'd take advantage of not having a car payment to either put into retirement savings, save for a house, etc, especially given the market conditions for vehicles and interest rates right now. Our 30s are critical for being set up well later in life, and can make the difference between retiring in your 50s with all the playtoys you want vs having to work into your 60s just to get by in retirement. Play with some investment calculators online and even just a few years of maxing a 401K in your 30s can have a dramatic effect on your retirement, even if you end up having to reduce contributions a few years from now.
I feel you regarding the want for a specific vehicle, although a different flavor. I bought a Porsche a few years ago, and I absolutely loved it. When my S.O. moved in with me, it broke my heart that I hadn't driven it in 2 weeks; she has a Toyota Venza, works 100% remote, so a second car just didn't have any use. While I could afford to keep the Porsche by most reasonable standards, it still just didn't make sense to carry such a large depreciating asset.
So, off it went. At the very least, you could look at it this way: if all other finances are good to go, put that money into a high yield savings, CD, MMA, cash account, etc and save for a couple years to buy a 4Runner outright in cash. In this course of action your money is working for you, instead of you paying the financial penalty known as "interest" on a loan.