a790

I've owned my '14 IS350 since July and have put on 4,600 km since then. That's averaging 836 km/month... not exactly a lot of driving.

The price of the car was $57,000ish (iirc) and we put down $15,000. We aren't underwater on it and have a fair amount of value on top of the loan amount at the moment.

The dilemma is this: why make a sizable car payment on a car that I barely use? Turns out I don't drive nearly as much as I thought I did, whereas my wife is miling up the Jeep as fast as she can (lol). The Lexus spends the vast majority of its time parked.

Now I'm starting to think that maybe it'd be a smart idea to sell the Lexus and get a used vehicle in the $10k range, pay for it in cash, and get rid of the car payment. Take the first year of "payments" that would have been made on the Lexus and put it into savings, and then you're laughing every other year after that.

We can afford the Lexus just fine and still save a good chunk of money, but I'd like to start putting more away so help accelerate some of my long-term financial goals.

Thoughts? Advice? I'm 28 and am just starting to gain appreciation for the "bigger picture" so if you've been where I am I'd love to hear your perspective.

Thanks!

cFoo

Been there done that. I sold all my toys and drove a Honda Fit (paid off) for almost 5 years. Invested in the kids, and the market. The market investments gave enough back for me to be comfortably driving the IS without thinking about the payments.

But I have to warn you, it was a pretty painful 5 years. Full of envy and day dreaming. Every time you see a nice car pulled up beside you, you will think to yourself "I can afford that". But here you are sitting in a beater next to someone who's probably barely able to make the payments. It requires patient.

Spagolli94

Why don't you drive it more just for fun? Treat it as you would a weekend toy. Then again, if that's not your idea of fun or you feel like you're not getting your money's worth, then I'd get rid of the car. No reason to keep a depreciating asset that your not using.

On the other hand, if it was a classic car, I'd say keep it and let it would be a garage queen. But obviously, the IS 350 isn't in that category.

Lindenlea

I think you should do what your gut tells you, and that seems to be to sell the IS and change down.Cars are a losing investment and if you are feeling like your priorities are changing, I would make the switch.

IS1911

DO IT! You sir are VERY wise beyond your years. It's refreshing to see a young man making SMART decision for his future. I drove Mazda RX-7's in my 20's and then dialed it down for my 30's. In my mid/late 40's I started to make "stupid money" so I bought a Porsche and Ferrari both purchased brand new (but not at the same time - LOL!) Now in my early 50's the "Supercar" bug is completely out of my system. I'm enjoying my Lexus and have plenty stashed away for retirement.

islandbeef

Maturity = learning to live for tomorrow, not just today. "YOLO" is a term used by kids, not responsible adults with a lot to lose.

A money drain, is a money drain..no matter how you slice it. If you can let the car go, the savings will add up - meaning more security for "rainy days" in the future.

I've driven beaters in the past, third hand cars with salvage titles and I've always compromised. In my age now (upper 40's), I'm cashing in.

a790

Thing is the car costs less than 10% of my monthly net income. We save 25% of what we make- minimum. Financially, we don't really need to get rid of the car for any reason other than having more liquidity.

I'm torn because selling now means losing a huge chunk of that down payment, but then again, why spend on something that isn't used?

tC2IS350

Why doesn't your wife ocassionally drive it if she drives so many more miles than you do? You could trade cars and take the Honda and she could take the IS some days? Keep the mileage down on both?

This is coming from someone whose husband has a garage queen that gets driven about 3,000 miles per year maybe, and he is trading it next year for an even more expensive one. If you have a comfortable cushion of savings and you are financially stable, why not.

salvadorik

iTrader: (1)

This a type of a question where only you and perhaps your wife can have a good answer. In this life, which is full of temptations, it is very hard to resist especially when you can afford it (even if you can't). The automobiles have never been and wont be an investment (except some classic ones which only garaged) - it is a consumable product. You consume it by virtue of owning and driving it. Then comes a different model that is more attractive and you will trade your current vehicle in and a get a new one, hence the consumption continues. The question is would that be financially prudent decision to invest the money instead of using it to drive a brand new shiny car. The correct answer is Yes. Whether you will do it or not it entirely depends on you both. I personally could not do that. I feel that life is so short that you have got to enjoy it to the fullest. I bought a brand new top of the line Audi A6 when I was 29 for around $60K. My friends called me nuts but all of them loved my car.

evident

cars, even lexuses, and especially new cars depreciate a ton their first 3 years. Like you, i'm 29 and trying to invest as much as my money as possible and prepare for kids. hoping to get a few more years out of my honda until the prices on used IS350's drop a little. we make a decent salary and can afford it but i simply cant stomach the depreciation numbers on a $50K vehicle the first 3 years. i don't mind high mileage vehicles either and know how to work on all of the basic maintenance too. any time i get tempted, i just think about how many vacations to hawaii i could make with all the depreciation on the vehicle over 3 years, LOL. it helps that the honda, although its starting to rust, is mechanically bulletproof so far. if it was about to crap out i might have to reconsider though.

IS350S2K

In same boat and have thought about selling my IS. I have 3 cars. Two sits in garage including the IS. I have put about 3.5k miles on it in the year of ownership. I will probably hold onto it. It is nice to have a choice of which car to drive when I head out the door.

wthrman2

I also agree,,,,it is a personal decision. I like y toys and don't put lots of mileage on them annually as well. the g/f and I both have a great job making good wages, no debt and are very wise with our money. THat being said, I love cars and I have to still enjoy life a little....and to me, cars are it. You only live once and while its important to put some away, and I do have a SOLID nest egg, I don't want to go to the dr. one day and told I have a terminal disease and feel I didn't enjoy life a little....So that is what you have to weigh in the decision.....be wise but not to a point where you deprive yourself of everything.

SCSurf

I just did this, which explains my absence from the forum. I'm only here to sell some of the stuff from my Lexus (soon to come the AimGain Type II diffuser for those interested )

I was driving a 2000 4Runner before I sold it off because I wanted a new, more sporty car. I bought a brand new 2014 IS350 F-sport in March 2014 and just sold the car 3 weeks ago. My monthly payments were about $800 + $160 in insurance... I was losing about $1000/month to a depreciating asset. Now I wasn't suffering with this financial burden, but let's just say it's a hell of a lot nicer having that $1000 back in your pocket. I bought a nicely maintained 2008 Mazda for $10,000 cash and it's the best thing I could've done. Especially in LA, having a luxury car is a headache with the fear of what will happen to your car every time you leave it in a parking lot to run errands.

Sure it's nice to have a flashy, fun car, but it's a depreciating asset. I'd sell the car, buy a beater, and keep that car payment in your back pocket and breathe a whole lot easier.

niteLEX

I agree with salvadorik, life is so short that you have got to enjoy it to the fullest. I am 28 and also feel like we are in the exact same spots. I have an 08 IS250 that still runs like a dream, paid for. I almost bought a new M3 which would be a very fun ride but thinking about the future is a much more intelligent decision to make. You will make the right choice. We bought a brand new house instead.

drbazing

A lot of my colleagues told me it's not a bad idea to get all your toys bought at a young age to get it out of your system. I got the IS350 F Sport right after I graduated and got a job because the IS line has been my dream car since I was in HS and also I'm kind of thinking about the future how this car can potentially be my future family car.