cadfael_te

I'm thinking about trading in a 2010 Lexus IS350C I got in November to get a MINI. I had a MINI convertible for about 4 years before I traded it on my IS.

The bad news is that I would be taking about a $10k hit in depreciation on the Lexus. But here's why I'm even considering it:

The numbers:
2010 Lexus IS350C - paid $53k, offered tenatively $43K, owe $36k (My cabrio kept a lot of it's value for a 4+ year old car)

If I were to get a new Clubman I'd drop my payment from $777 a month to $338 and my debt on the car would go from $36k to~$24K.

If I were to get a new Cabrio the numbers would be similar but the payment would be about $450.

I had been on the Dave Ramsey plan until I got the Lexus and the idea of having more money to pay of my debts and start seriously saving for the offsprings college and our retirement sounds really good.


So, am I crazy?

(BTW, I like the IS but it's already had one issue with the top and that makes me nervous as well).

BinaryJay

Pretty crazy to take that hit at this point. Seems like you should have thought it through more before making the jump in the first place but at this point I know I wouldn't be able to live with the "waste".

Give the car more time, it's probably just buyer's remorse and eventually you'll feel better about it.

Initial G

iTrader: (38)

Give it some time. Doesn't seem like you are thinking that clearly. Reconsider the issue ina couple of wks and see how you feel. If you still feel the same way, trade it in. You'll be taking a loss, but at least you'll have the car you "really" wanted and be happy driving it. Good luck.

Ice350

iTrader: (1)

I think once you saw the payment was going to be $777 per month, you should have nixed the deal if it was too much for you.
I say get out now and take the loss now.

Dunkin1222

+1,000....I'd have sprinted back to my car when they showed me that payment

cadfael_te

Didn't really strike me at the time how much the payment was. Can I afford it - yeah. Does it keep me from doing some other things that would be fun and fully funding my retirement right now - yeah.

llamaboiz

damm 800 a month just on car payments... what about rent? food? daily crap money? the monthly other bills?... man it must be nice to even be able to consider a 800 a month car payment as viable...

darkdream

Depreciation is only significant if you get into an serious accident or plan to sell the car within 4 years or so (if you plan to keep the car for a long period of time then it should be negligible). It seems that you are on a tight budget so it was a crazy idea to finance $36k.

cadfael_te

The Army pays my rent. Got more than enough for groceries but the car payment does eat into the opportunity to eat out more, blow money on a new home stereo, etc.

IS-SV

IMO, terrible waste of money. Secondly I don't consider the Mini to be any sort of upgrade over the IS350C. Depreciation is a real and significant cost of ownership for even the average owner that keeps his car for 3-5 years.

One issue with the top under warranty is a non-issue compared to the average Mini repairs, etc.

Consider a refi on the Lexus to lower payments (longer loan, lower interest rate).

camerri

+1

On $36K you could get your payment down to $492 a month at 4% for 84 months. Even 72 months is $563.

Plus you keep the Lexus which is WAY better than a Mini, IMO.

ping83

iTrader: (8)

For 800 monthly payments I would be driving a porsche no doubt! I have always questioned that on this forum of how actually has there car paid for, leased, and still owing on it.

Infra

iTrader: (1)

$777 / month is not bad for a $53k car.

You are only talking about your monthly payment. What about the life of each loan - how much longer on your current note and how many months on the one you are considering?

You can always refinance your current loan and extend your payment period, which will drop your monthly payment. You might even get a lower interest rate with the way things are right now. Expect about a $200 fee, plus the car must be appraised within 10% or so of the loan value.

Evitzee

You have fallen for the old trick of focusing on PAYMENT instead of what the bottom line COST will be at this point in your ownership process. Why throw away $10k?? Makes no sense at all.

And you must realize Dave Ramsey would rip you a new one for buying either a Lexus or a Mini .... either one a terrible waste of money by his standards. He would have told you to buy an old beater for cash and drive it till the wheels fell off.

fknISC808

iTrader: (1)

im just shy of 800 by 85$ out here in hawaii


OP, Give it some time. unless its a financial burden then get rid of it.