TurboRush

Looking for a bit of input. I am looking to get an IS350 and have been tossing around some ideas of how much down vs how much to finance.

Basically what I think I have decided is to finance $20k and Pay the remainder in cash. That gives me aprox a $400 a month car payment over 5 years.

For those that didn't pay all cash, what did you do? I am probably just looking more for validation that I am not off the deepend for paying out $20k+ in cash or on the flip side for financing as much as I am.

Thanks.

mikewpu04

Heres what I did...

I financed about 25K and put about 10K down... and I could have put more down, but my job is not always stable (im a freelancer), and thus I thought making my savings dangerously low would make less sense then having a 400 and change car payment.

However, I wish I could have waited another year to have to buy a new car. I would have preferred to finance less then 15K. Financing a car = bad debt. Bad debt isn't good for anyone's finances. In this case, I chose to finance to keep savings around and NOT to buy a car I couldn't afford.

unit74

iTrader: (3)

$19k Down

Financed $28k

5.7%

Payments are about $550

ihkskim

Put down 11k

Financed 21k

6.2% @ $430/mo

but i'm paying 2000/mo to pay it off by this year.. dont' like interest or car payments for that matter

monkeyfarm

$20k and change down ($10k trade equity + $10k cash). Financed $15k for 3 yrs @ $464/mo.

It'll be paid for in half that, but I'd rather stretch the term out a bit. All the interest I'll pay in the period will be covered by other investments anyway.

TurboRush

That's the part of forgot... ideally 8 - 10k is a trade in... I haven't fully decided if I want to trade the car in or keep it for autox and track type duties.

monkeyfarm

That's a call you'll need to make on your own depending on a lot of variables. But if you're close to NHIS and you don't need the cash from the trade, keep it

Payam

I put $5,000 down and financed $39,000 at 6.5%. (bad credit, long story)
payments are $771 for 5 years.....

monkeyfarm

Dude, what the hell were you thinking? If you have bad credit, assuming $40k in dept probably isn't the best way to remedy the situation. Your car loan is more than my second mortgage.

jinetix

37k down (cash + trade-in)
10k finance @ 7.45% for 3 years - $310~ /mo.

was going to buy the car in full but decided to raise my credit score a bit. might have to sell the car though, need some cash upfront for a partnership i might enter.

Sexi_Lexi

Off topic but I was wondering which dealership you bought your car? I paid for exactly the same car (except the color), same options and same price. It makes me feel bad when I see people paying a few thousand less...

Kermee

iTrader: (1)

6.5% isn't actually that bad. I've seen MUCH worse and in mid-to-high teens from folks who shouldn't be financing cars at all. The fact remains that whichever bank decided to extend credit to him at 6.5% for 60 months on a 40K installment loan means his credit is marginally Tier 2 if I'm to properly assume it was purchased it last year or early this year when rates were much more agressive. Now it's ironic that some Tier 1 rates are coming in at 7.35% and higher.

The final decision is whether *you* decided to take the loan or not and if you can make the payments. Also, bad credit doesn't necessarily mean someone is a bad person either although it seems to be a legal measuring stick these days. I had a friend who had an $3.32 extra balance with UPS due to a "shipping charge adjustment" because the purchaser told him that it was a "Business" address when in actuality it was a "Residence". UPS sent the bills to the wrong place and never charged the card he had on file with them. It never got paid. UPS sent it off to collections. Finally it ended up on his Equifax report. His immaculate FICO dropped 100 points immediately.

Things happen out of honest mistakes with people and bad credit reports. Don't be too quick to judge. Also, I'm guessing your 2nd mortgage is a HELOC (Home Equity Line Of Credit) which means it's a line-of-credit/revolving debt vs. and installment type like car loans. High LOC's and revolving debt affects your credit worthiness a LOT more than an installment loan. (Ex: $40K HELOC is going to hurt your credit score a lot more than a $40K car loan).

Cheers,
Kermee

slowandlow

i was told i could do a 3 year lease for 10k and that is with sport package. is this a good price?

jinetix

I got mine at Longo Lexus. I'm financing through a bank though, not LFS.

Kermee

iTrader: (1)

I haven't heard of that yet but if it's true, that's pretty good considering that approaches the old 2006 ES330 special lease rates.

Cheers,
Kermee