krava

I am sorry for some of these postings but I am trying to find the absolute best deal I can on a car. I don't have to have new but it doesn't seem that used 2013 GS model is worth buying right now. I can't find one anywhere that is a real good deal unless it has a lot of miles. There was a F sport mark levingston etc for $17K under MSRP, but it had almost 50K miles on it. I have done a ton of research, and from what I get the best time to buy is December 31st. Also make sure I don't go in there real late in the day to **** off the sales guy. Does anyone agree with me? Why would you buy a used car with lets say 20K miles on it that could be 1.5 years old and only save 7K when you could have bought a new one. What I am seeing is that you can buy this GS for less then invoice usually $1K less or more there are a ton of those in stock in dallas, and the 15's are coming in sometime. Should I wait until 15's actually show up? wait until Dec 31st? I don't understand. Why buy at the end of the year for a used car. Jan 1st is a new year. That makes that car another year older. Doesn't the car depreciate more on that 1 day then at any other time? So if I buy on dec 31st, and then the next day it depreciates like hell. What is the point of doing it on the 31st? I am saying this because I am trying to decide to buy new with a good deal or maybe be forced to buy outside of Gs350 and get a 2011/12 BMW 535i or Audi a6 which get 1/2 MSRP which I know is a great deal. I plan on keeping the car until something super major happens to it and it isn't worth fixing. I don't want a lot of repair cost. If I buy new, I get the factory warranty. Then I can add the 100K warranty to it later on before it expires and have basically 7 years of no problems.
More information: I also know that a lot of lease cars are going to be up before the end of the year. There probably be some good deals when the leases flood the market. Should try to get a CPO one when there is a lot of stock around December 31st? Right now there is hardly any stock anywhere and prices to me are pretty high considering what you can do new. The deal that is on the table is a 2014 starfire pearl, luxary package, park assist, blindspot monitor, 18" wheels, Nav etc MSRP $54,538 and offering it to me $50,538 and I haven't even walked in the door yet. (that price includes tinting my windows also). Any input let me know.

SW17LS

You're confusing calendar years and model years. If you buy a 2015 GS December 31st 2014, on January 1, 2015 you're still in the 2015 model year. You're also way overthinking this.

I don't put a whole lot of stock in these whole "wait until a specific day" deals. If you bought the car now, you could negotiate a great price on a 2014 because the 2015s will be out in September. If you wait until December, you can probably get a great deal on a 2015. But, you will have gone the next 4 months without the car. Would a 2015 be worth more 3 years from now than a 2014? Sure...but we're not talking about huge sums of difference here.

Negotiate your best deal and buy the car when you need/want the car.

FastTags

IMO yes December deals are the best sumply bc the new models are coming and they need to sell the old ones, still NEW. If that is your main factor then wait for it.

As much as I would love to buy a car in Decem time, it never works out that way for me and I am also not a very patient person.

As everything else, I dont think anyone will be able to help you with your dilema, as the criteria is different for each person. I know people who only buy Used 10k-25k mile car. And some folks only buy new.
It all comes down to your priority. If
Money is the priority then go with a CPO if reliability and the New car smell, then go with new.

Ramon

New models are available WELL before December. If you wait until December to pickup a 2014 vehicle, you will be very limited as 2014 inventory will be pretty well dried up by then. You certainly would get an excellent deal if you found what you're looking for, just that the odds of finding what you're looking for will be pretty low.

Between now and around September is an excellent time to not only find good deals, but also exactly what you're looking for.

FastTags

YOU are correct. I guess what I meant to say is close to December, when the new cars are going to come out thats when you want to start looking.

SW17LS

December is a great time to buy a Lexus. Thats when I bought my GS, December to Remember. My point is that now is also a good time...I wouldnt wait for December just to wait for December

krava

maybe I am asking the wrong information. I guess my question is how can you sell the car below cost? you can't right? if they are selling kind of way under inventory cost if they cut even more off it would be below cost they wouldn't do that right. Anyway here is the numbers I am getting from sewell on a lease which they are saying is best to do.

Here is the guys email quote:
With your credit, Irene was able to get you into a one pay lease for $23,305 for a term of 33 months.

2. This lease will establish a positive credit history for you which will allow you to purchase the car, or any car, at a lower interest rate when that time comes.



Right now, if you were to purchase and finance for 5 years, your rate would be 9.5% for that term. With this lease, the interest rate for 33 months is 7.5% and that has already been applied to the one pay of $23,305.28. For 33 months you make no payments. The residual cost of the car after 33 months will be $32,722.00. This is the price of the car that you will finance should you choose to buy it at the end of the lease term. Also, with the established credit, your interest rate will be lower thus making the purchase a lot more economical.

FastTags

find a co'signer is your best bet or pay the price. There is no way around it, just try to negotiate on the APR tell them you want 4% for one time lease.

The dealer makes money on the APR as well, say for example bank offers 4% the daler will add another 3% which goes straight to the dealer. So negotiate the APR, just keep banning at it.

SW17LS

You hit the nail on the head. They can't. If they have incentives they can, but they are making a HUGE profit off of the interest rate that they are giving you, so thats where the profit is coming from.

7% interest on a one pay lease?!? I don't care if you don't have any credit...thats absurd. You're making all the payments at once...their only risk is if you were to just not turn the car in at the end...

The $23,305.28 comes out to $706.21 a month...which on this car nowadays isn't great.

Have you shopped this with any other dealers? If I were you I would shelve this for a year, get a secured credit card and build credit and come back at it in a year.

FastTags

I have to agree with SW13GS here, 7% is outrageous since you are not actually financing, there is no Risk to the BANK since you paying upfront, so the rate should be much lower.

Shop around, call around even if its in another city just so that you could make dealers fight for your business.

krava

that is what I did/. I am getting 2 secured loans, then 60 days from now getting a secure credit card and don't go over 30% credit on it, make payments on time and they said in 6 months I should have something. So you can close this thing out. Thanks for the help

krava

basically I have to "BUY" my own credit. I did 2 loands for $250 each which come out to $8 or so total interest for 6 months and 6% which isn't much.

Christobol

krava, if your credit is this bad, maybe you should consider a cheaper car. I've never had an auto loan, have either paid cash or financed the car through a friend who was the seller, so no record of lien. I own my house with 50% equity, so using the auto score index I only qualified for a 6% rate. I was able to get the dealership to offer 3%, and my credit union said they would beat any offer by 1% so I'm at 2% on my car. - You should look at a credit union to see if they can do a similar deal.

There is no BEST time to buy, and each month there is a possibility to buy a car cheaper than any time in the past, and any time in the future.

A couple of quick facts from someone who has been a regional/district manager for a few car companies:
1) Invoice price is meaningless
2) Dealers make most of their money on kickbacks from the manufacturer for meeting various goals such as:
a) overall customer satisfaction
b) Total yearly sales
c) Total monthly model goals (where they will offer a $100,000 kickback for selling 30 GS350's that month, so the 30th car they sell could be sold for $1 just so they can get the remaining $40k after paying off the GS, that would only happen late on the final night of the month if they are desperate)
d) Total monthly overall sales goal etc
3) Each portion of a car sale is a possible profit center, some dealers will shift profit from one area to the next, like drop the price but increase the APR. Always view buying a vehicle as multiple, independent transactions. First settle on price. Second work on terms for either financing or leasing (and always look to outside banks for financing so you know what's good or bad). Finally your trade-in and just remember that no matter what they say, they will not give you more money than you can get selling your car on your own.
4) Dealers will LOSE money on a deal if it makes sense in some way... for instance when I recently bought my 2013 F Sport, they wanted the car off the lot to stop dragging down the prices of the 14's which were soon to be replaced by the 15s.

In all cases the last day of the month or the last day of the year are you best times to buy, but no day is always better than another.

AL13NV8D3R

All this talk about 7% interest? Why is it so high?. I financed my car for 40,000 and interest was only 2.4% and I thought that was high for me. So at 7% they are robbing you blind!

SW17LS

Its not that he has bad credit, he has NO credit. He doesn't even have a credit score. In many cases, no credit is worse than bad credit. His situation doesn't surprise me at all, I see it in my business all the time. If he does what he says he's going to do above, he'll have 750+ credit in a couple months (it wont even take 6. I bet he can do the deal in December) and they'll be falling all over themselves to offer him 1.9%. Strange but true.

A credit union won't be able to help him either. The captive manufacturer (in this case LFS) is way less strict than a private lender, and certainly a credit union. You're different because while your auto enhanced score was low, you DO have a credit score because you have a mortgage. He has no credit score.