SaintNexus

A few members here know what I've been through from the stuff I've talked about in the past (my car getting repoed, paying off debt, improving my credit score, etc).

I drive 27 miles to and from work (54 miles total a day), and driving a 21 year old LS400 with a V8 engine, I am guzzling gas like crazy.

Most of the miles I put on my car are highway, and when driving conservatively (cruise control at 65-70mph), the most miles I got from a full tank is 330 miles (22.5 gallon tank=15 mpg!!!). Again, this is mostly Highway, rarely in city.

I really need a hybrid, or a V6 car. I see a 2000 GS300 for $7,600 with 140,000 miles. If I can get the car for $6,500, and I put $1,000 down, lets say the APR is 25% (thats the highest it can ever be, right?), and 9.75% tax, for 36 months, it's $250 a month, and I can do that easily. If the APR was 10%, it would be $200 a month.

The way I see it, I will have a v6 that is better on gas mileage, and that the payments are low. Once the car is paid off in 3 years, my credit score will be better, and when I buy another car in 3-5 years later, my apr will be lower, because i should (hopefully in 3 years), have a better score.

I have been making every payment (credit card, cell phone, dental) on time for the past year, if not more (Also plan on being debt free by July of 2012). I am on top of everything, and going to school to further my education. My credit score is ****, and I think doing this will help me in the long run.

But I am not sure whats the minimum price on a car that i can get financed, and with me having a repoed car under my belt, im not sure how high the apr will be (25% at most?). I think my credit score is between 550-650 now. Not sure the exact number, but its low.

Anyone have any advice to give?

EDIT: Also, this is the car that I am wanting to get:

http://www.cars.com/go/search/detail...5&aff=national

Hopefully its clean title and everything works out fine. I'm sure the mpg is much better on it also.

CK6Speed

iTrader: (1)

Unless there is something wrong with your 94 LS 1UZFE engine, you probably wont get a significant MPG boost with the 2000 GS300 if at all. They would have roughly the same MPG. This is based off of many owners reports here on CL, and also on my own experiences with owning a 93 SC400 (Virtually the same engine and trans as your 94 LS), a 99 LS400, and my current 03 GS430. By the way, I used to get about 19-20MPG with my SC400 and LS400 running about 75% Highway/Freeway, so your 15 MPG is definitely below par.

IMHO, if you are going to drop money on a new or used Lexus car for better MPG reasons, you need to step into the newer V6 (Not the I6) like in the 2006+ IS and GS. Basically the new generation engines with Direct Injection. Otherwise its a virtual parallel step from the V8s of that era and the I6. The V6 found in the ES00 does do a little better but nothing significant. I had a 94 ES300 and my mom currently still has a 99 ES300. MPG is a little better, but nothing worth getting another car over.

caddyowner

If your LS is paid for and runs fine except for the MPG, I would keep it and look for inexpensive ways to improve the mileage, like a new air filter, etc. Unless you're going to get a small 4 cylinder car with great mpg, I don't think you'll save enough in fuel cost to offset the cost if buying and fixing another used car.

05EX

what they said ^^^^. you would be better getting a full tune up and improving the mpg of your current car, unless you just want an excuse for a new/different car. And no offense cause i've convinced myself in the past to bye a new car for similar reasons, but your not gonna see a significant increase in milage to justify the expense of a new/another car

SaintNexus

Well, besides wanting a new car for better mpg, the newer looks, etc, the main reason as to why I want it, is to help improve my credit score, so 3-5 years later, i could get a nicer lexus with a better apr.

Also, what is the minimum cost of a car for you to be able to get it financed? I did some research, and I think that here in CA, the minimum is $5,000, is that true?

IS-SV

15 mpg highway 65-70 mph something is wrong with the car, cost effective solution is to get it fixed.

caddyowner

I don't think getting a high interest auto loan is a good way to improve your credit score. I think the smarter move is to make due with your current car, pay bills on time, and let your credit score take care of itself. Any Dave Ramsey fans able to chime in?

UDel

Your LS is paid for and I assume pretty reliable in no need of major repairs. You are going to just be losing a bunch of money if you spend over 5K on a newer car, especially one that only gets slightly better gas mileage. It makes no sense to go out and buy a newer car, especially another not very fuel efficient older Lexus, if your trying to save money on bills. If you really want/need to get a newer car and want to try to save money then I would get a inexpensive highly fuel efficient used 4 cylinder Corolla, Civic, etc something very reliable but they are going to be steps down from your LS.

I don't think your LS should be getting gas mileage that low on the highway. Have you taken steps to improve the gas mileage like overinflating tires, taking extra weight out, clean air filter, cleaning throttle body, oil change, fuel injector cleaner, new spark plugs, MAF sensor cleaning(be careful on the LS), general tune up. Most of that stuff is DIY and should be pretty cheap.

If you just want a newer car then forget about trying to justify how it will save you money because your just not going to save money by getting something new over something already paid for. Just get a newer car if you want to, you had the older LS for a long time and it may just be time to step up to something newer but your definitely not going to be saving any money with a new car payment or spending over 5K of saved money no matter how fuel efficient it is unless maybe your talking over a very long period of time.

CK6Speed

iTrader: (1)

I agree. Revolving debt and bad reports on your credit report affect the credit score much worse than anything else. The positives that may come from the installment loan if any at this time will be minimal. The OP had to basically wait for that repo to fall off his credit report and simply pay all bills on time and reduce debt or pay it all off. At least pay off the revolving debt.

Seriously, the best way to improve your credit score is the pay off the credit cards. I had some credit card balances, but my credit score was still pretty decent (In the 700+ range). I paid them all off in full (Have zero debt now) and my credit score shot up over 800+. It really is that easy. Credit debt kills your credit score IMHO.

bitkahuna

iTrader: (20)

Incredible - getting an old GS300 which is also lousy on fuel economy, and paying $250/mo. for the privilege vs. keeping your nice LS400 makes ZERO sense economically, and will do ZERO for your credit rating.

what WILL do something down the road is if you get to a financial position where you can actually afford what you're considering, and to that end why not start SAVING $250/mo., putting it somewhere you WON'T touch it. in 2 years you'll have $6000, plus the $1000 you said you could put down on that GS - a nice sum. loaners would look favorably if you have a good sum to put down, plus little other debt. forget what people say about getting in MORE DEBT to improve your credit rating, that's a crock.

PhilipMSPT

iTrader: (5)

Someone needs an education on credit and money...

SaintNexus

Ok, so yesterday I filled up $15 worth of gas (3.49 a gallon), for about 4.3 gallons of gas. So far I've drivin 60 miles, and I still got some gas left. I'll let you know the amount I drove with 4.3 gallons of gas, sometime tomorrow night.

I have Chase, and the APR is 29.99 (it's a penalty). Under contract, it said that if I make 6 consecutive payments, my APR will be lowered, it's been over a year, and it's still the same. They said that my account is going to be reviewed this month, and I'm going to call them sometime this week.

I got 2 Chase credit cards (4 if I include my CareCredit, and my WellsFargo credit card; I also got about $2.5k that I owe the California State Franchise Board).

But I have this blue print plan for Chase, if I pay $128 a month towards 1 of my cards, it will be paid off in full by December 2011, and if I pay $218 a month towards the other card, it will be paid off in full by July 2012.

My WellsFargo card, I owe $375 and just paid $75 this month towards it, so it should be paid off by this July (I think).

Towards my CareCredit (I had braces), I still owe $1,500. But I plan on getting veneers and a bridge (i need it), so that's gonna cost me another few grand. But I'm not gonna be doing this until July.

The amount of money I owe the State, I haven't started making payments for it yet, I don't think I have to worry about it for a few more months (I think in 6 months). But I do plan to start paying for it slowly sometime starting February.

I'm not sure what my credit score is, but I owe all that (I'm about $8.5k-$9k total), and I plan to be debt free (or at least have over $5k paid off) by Next July.

Not sure about my credit score, I think its around 600-650. Do you really think that my credit score will jump above 700 once my stuff is paid off for?

Big Mack

iTrader: (1)

They operate 24 hours a day, and they have violated the contract if you are correct. They owe you credits on your account if that is the case, and a further reduced rate for the life of the balance you have now (and only that balance. Stop using the card.)

Hmmm...if you could afford $250 a month for a car, you should be able to have the WF card paid off in less than 2 months. Put this toward your chase cards, and you can put $100 a month on each chase card, save the other $50, and be in good standing in a much shorter amount of time.

This should be tax deductible if it approaches 7% of your income and you pay it off this year, which it seems like you should be able to do.

Wrong. You have to worry about it now. You should start making payments on it ASAP. This is the problem with many people's thinking - I don't have to worry about that debt now, I can worry about it later. The time is now if you have the money, then you won't have the debt later.

Your credit score will start to move, and the consensus here is mostly correct in that increasing a specific kind of debt to increase your credit score is false. What you can do, however, is request increases on your limits, thus lowering your percentage of credit used. This may be difficult now, but tell Chase to get your account straight and they should be able to do this for you. You can get a significant bump in credit score (10% or more, depending) once your percentages drop down to a more manageable level.

Keep your payments up, arrange that $250 and allocate it where it will do the most good (highest interest rate), and start saving at least $50-100 a month from it if you can. Then, once you have a debt retired, you should be putting whatever that payment was away in your savings. Amazing how we suddenly find other things we have to have once something gets paid for. Vicious cycle.

Big Mack

caddyowner

We need to have a thread about bikinis instead of finances so we get better banner ads than myFICO.

LexFather

First off, I think its great you are taking your finances more serious and trying to correct your ways. I think with some advice and additional reading you are on the way to better credit.

Now understand there is still a difference between have a great credit score and having financial freedom. Don't get a good credit score just to buy things and stay in debt. Do it for things like a house, car (though we are all car freaks, its one of the worst things you can buy ), starting a business.

True what he might do does not sound logical but if he does want to improve his credit score, he will need to improve his credit. Keeping a paid off car won't do that. Now if he plan is to pay things cash and to hell with a credit score, well keep the LS. Also his best friend will be TIME if he isn't going to dispute anything.

25% interest is simply rape. Mafia rates. That is the APR for a department store card. If you go this route in the past the thought was do it for a year, pay on time for a year and REFINANCE at a much lower interest rate.

However with credit still tight and you buying a car ten years old, your chances for a re-finance are slim to none.

You need to get your credit report. Join here and read.

http://creditboards.com/forums/index...ex.php?act=idx

You need to contact the state to make sure they don't file a LIEN on you, which would ruin your credit.

You need to get in WRITING the agreements you are making with these companies or they will take your money and your credit will still be ruined.

You need to get your credit reports (you are entitled to them for free) and dispute mistakes. Some people say dispute anything negative.

A GS 300 ain't great on gas. The 2JZ literally only gets 1 MPG more than the V-8. Its not an efficient engine. An ES 300 would be better on gas.

Open an account at a Credit Union, get a secured card and that will help rebuild your credit as well.