old Gs400 or new es350 purchase worth it?
10-14-12, 10:43 AM
#16
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10-14-12, 11:15 AM
#19
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No consignedr, around 9% interest equal much more than that a month Toyota would do up to 24000 for 60 months. Not hitting es costs. Some dealerships couldn't get me a used es for 22000 at any rates too
Toyota would do up to 24000 for 60 months. Not hitting es costs. Some dealerships couldn't get me a used es for 22000 at any rates too
10-14-12, 01:15 PM
#20
I'd agree with ArmyofOne. However, it looks like you'd need to establish credit, so buying a car w/ cash is out of the question. In your case, I'd recommend you to forget about both cars that you mentioned, and get a vehicle in the $5000 - $7000 range instead. There are a few important reasons for this:
1. Your APR is super high. 14%? You better make sure you don't borrow a lot of money. Even a loan of $7000 (98 GS) is too much in you case. According to mlcalc.com, you would have paid around $3,400 in interest in 6 years. In the span of 6 years you'd lost $3,000 down + $7,000 loan + $3,400 interest = $13,400. If your car is worth $3400 in 6 years then you'd still have lost $10,000. I don't even what to calculate the ES350 CPO scenario, but losing at least $20,000 in 6 years is probably reasonable. Borrow a lot of money at 14% just doesn't make sense.
2. You're more likely to get a loan for a 2006 vehicle than a 1998 vehicle. If you buy a $7,000 car with $3,000 down, you'd accomplish the goal of improving your credit. For example, an 06 Hyundai Elantra or comparable vehicle with reasonable miles (70k) should worth that much. Elantra has more standard safety features, such as side curtain airbags, than other compact sedans. I know because I sold an 05 back in Feb. for $5,500 and that was the main feature that the buyer wanted. So if we do the same calculation as above, we'd find out that you'd pay $83/month, and your interest would be $2000, and you would have lost $3,000 down + $4,000 loan + $2,000 interest = $9,000. Assume the vehicle is worth $2,500 in 6 years (12 year old vs 20 year old GS), the loss would be $6,500, much less than $10,000, the loss number from 1998 GS. In fact if you reduce the loan from 6 years to 3 years, your monthly payment would be $137 instead of $83, and your interest would be $922 instead of $2,000. What does this mean? Your loss in 3 years would be around $5,400... instead of $10,000 loss with GS. Would that extra $4,600 help you else where financially such as a bigger down payment for the house? Oh yeah!
Above advice is the to help the middle-class become richer and the poor avoid poorer. However, most people are so self-centered (not OP) and short sighted that often they're too focused on wants and forget about the bigger picture. I know that leather seat is comfort and the ride is quiet. But there are bigger things to worry about in life. If you must have leather seats, 06 Sonata LX is a good value vehicle at around $7,000. Through their first 7 years, my 05 Elantra was as reliable as my 95 Toyota Avalon, which is my daily driver.
1. Your APR is super high. 14%? You better make sure you don't borrow a lot of money. Even a loan of $7000 (98 GS) is too much in you case. According to mlcalc.com, you would have paid around $3,400 in interest in 6 years. In the span of 6 years you'd lost $3,000 down + $7,000 loan + $3,400 interest = $13,400. If your car is worth $3400 in 6 years then you'd still have lost $10,000. I don't even what to calculate the ES350 CPO scenario, but losing at least $20,000 in 6 years is probably reasonable. Borrow a lot of money at 14% just doesn't make sense.
2. You're more likely to get a loan for a 2006 vehicle than a 1998 vehicle. If you buy a $7,000 car with $3,000 down, you'd accomplish the goal of improving your credit. For example, an 06 Hyundai Elantra or comparable vehicle with reasonable miles (70k) should worth that much. Elantra has more standard safety features, such as side curtain airbags, than other compact sedans. I know because I sold an 05 back in Feb. for $5,500 and that was the main feature that the buyer wanted. So if we do the same calculation as above, we'd find out that you'd pay $83/month, and your interest would be $2000, and you would have lost $3,000 down + $4,000 loan + $2,000 interest = $9,000. Assume the vehicle is worth $2,500 in 6 years (12 year old vs 20 year old GS), the loss would be $6,500, much less than $10,000, the loss number from 1998 GS. In fact if you reduce the loan from 6 years to 3 years, your monthly payment would be $137 instead of $83, and your interest would be $922 instead of $2,000. What does this mean? Your loss in 3 years would be around $5,400... instead of $10,000 loss with GS. Would that extra $4,600 help you else where financially such as a bigger down payment for the house? Oh yeah!
Above advice is the to help the middle-class become richer and the poor avoid poorer. However, most people are so self-centered (not OP) and short sighted that often they're too focused on wants and forget about the bigger picture. I know that leather seat is comfort and the ride is quiet. But there are bigger things to worry about in life. If you must have leather seats, 06 Sonata LX is a good value vehicle at around $7,000. Through their first 7 years, my 05 Elantra was as reliable as my 95 Toyota Avalon, which is my daily driver.
Last edited by gt1209; 10-14-12 at 01:27 PM. Reason: Fixed typo
10-14-12, 04:03 PM
#23
Dysfunctional Veteran
I'd agree with ArmyofOne. However, it looks like you'd need to establish credit, so buying a car w/ cash is out of the question. In your case, I'd recommend you to forget about both cars that you mentioned, and get a vehicle in the $5000 - $7000 range instead. There are a few important reasons for this:
1. Your APR is super high. 14%? You better make sure you don't borrow a lot of money. Even a loan of $7000 (98 GS) is too much in you case. According to mlcalc.com, you would have paid around $3,400 in interest in 6 years. In the span of 6 years you'd lost $3,000 down + $7,000 loan + $3,400 interest = $13,400. If your car is worth $3400 in 6 years then you'd still have lost $10,000. I don't even what to calculate the ES350 CPO scenario, but losing at least $20,000 in 6 years is probably reasonable. Borrow a lot of money at 14% just doesn't make sense.
2. You're more likely to get a loan for a 2006 vehicle than a 1998 vehicle. If you buy a $7,000 car with $3,000 down, you'd accomplish the goal of improving your credit. For example, an 06 Hyundai Elantra or comparable vehicle with reasonable miles (70k) should worth that much. Elantra has more standard safety features, such as side curtain airbags, than other compact sedans. I know because I sold an 05 back in Feb. for $5,500 and that was the main feature that the buyer wanted. So if we do the same calculation as above, we'd find out that you'd pay $83/month, and your interest would be $2000, and you would have lost $3,000 down + $4,000 loan + $2,000 interest = $9,000. Assume the vehicle is worth $2,500 in 6 years (12 year old vs 20 year old GS), the loss would be $6,500, much less than $10,000, the loss number from 1998 GS. In fact if you reduce the loan from 6 years to 3 years, your monthly payment would be $137 instead of $83, and your interest would be $922 instead of $2,000. What does this mean? Your loss in 3 years would be around $5,400... instead of $10,000 loss with GS. Would that extra $4,600 help you else where financially such as a bigger down payment for the house? Oh yeah!
Above advice is the to help the middle-class become richer and the poor avoid poorer. However, most people are so self-centered (not OP) and short sighted that often they're too focused on wants and forget about the bigger picture. I know that leather seat is comfort and the ride is quiet. But there are bigger things to worry about in life. If you must have leather seats, 06 Sonata LX is a good value vehicle at around $7,000. Through their first 7 years, my 05 Elantra was as reliable as my 95 Toyota Avalon, which is my daily driver.
1. Your APR is super high. 14%? You better make sure you don't borrow a lot of money. Even a loan of $7000 (98 GS) is too much in you case. According to mlcalc.com, you would have paid around $3,400 in interest in 6 years. In the span of 6 years you'd lost $3,000 down + $7,000 loan + $3,400 interest = $13,400. If your car is worth $3400 in 6 years then you'd still have lost $10,000. I don't even what to calculate the ES350 CPO scenario, but losing at least $20,000 in 6 years is probably reasonable. Borrow a lot of money at 14% just doesn't make sense.
2. You're more likely to get a loan for a 2006 vehicle than a 1998 vehicle. If you buy a $7,000 car with $3,000 down, you'd accomplish the goal of improving your credit. For example, an 06 Hyundai Elantra or comparable vehicle with reasonable miles (70k) should worth that much. Elantra has more standard safety features, such as side curtain airbags, than other compact sedans. I know because I sold an 05 back in Feb. for $5,500 and that was the main feature that the buyer wanted. So if we do the same calculation as above, we'd find out that you'd pay $83/month, and your interest would be $2000, and you would have lost $3,000 down + $4,000 loan + $2,000 interest = $9,000. Assume the vehicle is worth $2,500 in 6 years (12 year old vs 20 year old GS), the loss would be $6,500, much less than $10,000, the loss number from 1998 GS. In fact if you reduce the loan from 6 years to 3 years, your monthly payment would be $137 instead of $83, and your interest would be $922 instead of $2,000. What does this mean? Your loss in 3 years would be around $5,400... instead of $10,000 loss with GS. Would that extra $4,600 help you else where financially such as a bigger down payment for the house? Oh yeah!
Above advice is the to help the middle-class become richer and the poor avoid poorer. However, most people are so self-centered (not OP) and short sighted that often they're too focused on wants and forget about the bigger picture. I know that leather seat is comfort and the ride is quiet. But there are bigger things to worry about in life. If you must have leather seats, 06 Sonata LX is a good value vehicle at around $7,000. Through their first 7 years, my 05 Elantra was as reliable as my 95 Toyota Avalon, which is my daily driver.
You can get a mortgage with no credit. All you need is a down payment. My brother went with $3500 and bought an $80,000 home with a 3.9 % fixed APR.
10-14-12, 06:11 PM
#26
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Do NOT buy that GS400 with 56k miles in Villa Park LOL. I checked that car out several weeks ago. Respray all over the engine bay, rear bumper was resprayed also. Carfax is clean, but there is obvious bondo work on the rear. The driver side door has a rip in the leather. I was pretty disappointed and I didn't bother inspecting the rest of the interior.
Last edited by GQD_GS4; 10-14-12 at 06:14 PM.
10-15-12, 01:46 PM
#27
If you want to buy a house in 2-3 years and don't want to end up in an upside down mess like so many American's are/were in with their mortgage, do as ArmyofOne suggested. Buy a used car in cash. You can establish credit by simply buying your gas on a credit card and paying it off each month. In fact, I would leave a small balance on the card like $20-$50 each month. That shows you can utilize credit, but manage it well.
When I bought my house I had zero debt, and 800+ credit scores on all 3 agencies. You need to be top teir credit before you should attempt to buy a house, and your housing debt should be under 30% of your monthly income. Trust me. I sold me Lexus GS430 and pretty much everything Inhad that could make me money when I bought my house. I was much happier with the house than I ever was with all the modivied cars I had. After I bought my house I bought my cars again. Get the house first.
When I bought my house I had zero debt, and 800+ credit scores on all 3 agencies. You need to be top teir credit before you should attempt to buy a house, and your housing debt should be under 30% of your monthly income. Trust me. I sold me Lexus GS430 and pretty much everything Inhad that could make me money when I bought my house. I was much happier with the house than I ever was with all the modivied cars I had. After I bought my house I bought my cars again. Get the house first.
Last edited by CK6Speed; 10-15-12 at 02:30 PM.
10-15-12, 02:13 PM
#28
Lexus Test Driver
Hello, I had an es300 from 97 with 120,000 miles on it running like a champ when some jackass tboned me. Since losing this car, I have driven many vehicles, including a new camry, and have been very unhappy with the ride and feel of the cars I've driven. I just need a G@D DA#N lesxus again. I received 5 grand for my totaled es300 from the jerk-that-t-boned-me's insurance. I spent 2 grand of my compensation on a bunch of school/work stuff, and currently am looking to put the other 3 down on a new(er) vehicle. I am considering two vehicles, a 1998 gs400 with 56k miles and a certified pre owned 2009 es350 with 35k miles. The gs is $10K, the es is $23k. For the first time in my life, I have a reguarly income of about 3 grand a month before taxes. I am a new teacher in grad school with loans, which I wont be starting to pay on for another two years. However, these loans are causing me to have bad interest rates everywhere I go, (I mean everywhere!) even on newer car. No chance of anyone cosigning for me. With my credit, after the three grand down, the gs400 would be about $160 a month for 6 years. After the 3 grand down, The es350 would be around $470 a month for 6 years, plus obviously gap coverage. Would the newer aged, lower miles, certification, and three year warranty of the es530 make it a better candidate, or would the much cheaper gs with potential for more repairs make more sense? I imagine both cars should be able to last six years for me, if my last cars lifespan expectancy is any indication.
10-15-12, 02:21 PM
#29
Lexus Test Driver
Thanks for the reply. Thing is, I need to start establishing credit at this point, so I can not get destroyed when I buy a house in about two years, and get a mortgage. That way I can not continue renting for 1000 a month. As a special education teacher in Illinois, teaching in a low income district, I recieve $10,000 for my house down payment. So buying a used car for three grand won't establish credit. With so much student loans, even in good standing, my debt to credit ratio is junk, and it's not likely to change for at least 3 years, when I start paying on my loans. I even get turned down for secured credit cards(something I didn't believe was possible). However, I will be spending much more than 28,000 on the newer car, at those (14%) rates for 6 years, I actually end up spending 34,000 on it. This insane considering the older model. But if my rate for a car loan is that bad, imagine how bad my mortgage will be for 30 years if I don't start establishing credit now.... I was looking at some cars that were a little less luxurious than lexus, however, due to back problems, it looks like I really need to be in the market for cars with softer, higher quality leather, otherwise I tend to be extremely uncomfortable when driving. Even at those crazy rates, however, it is likely to be worth it to have a much better mortgage rate in a couple years.
10-15-12, 03:04 PM
#30
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Thing is, I need to start establishing credit at this point, so I can not get destroyed when I buy a house in about two years, and get a mortgage. ...
But if my rate for a car loan is that bad, imagine how bad my mortgage will be for 30 years if I don't start establishing credit now....
But if my rate for a car loan is that bad, imagine how bad my mortgage will be for 30 years if I don't start establishing credit now....
also, "establishing credit" is much simpler than most people think, and it doesn't require going into absurd levels of debt. you should focus on how to make money and increase your income, and drive a beater with little to no loan until you do.
I was looking at some cars that were a little less luxurious than lexus, however, due to back problems, it looks like I really need to be in the market for cars with softer, higher quality leather, otherwise I tend to be extremely uncomfortable when driving.
my ford is far more comfortable than either of the two lexus i drove!If you want to buy a house in 2-3 years and don't want to end up in an upside down mess like so many American's are/were in with their mortgage, do as ArmyofOne suggested. Buy a used car in cash. You can establish credit by simply buying your gas on a credit card and paying it off each month. In fact, I would leave a small balance on the card like $20-$50 each month. That shows you can utilize credit, but manage it well.
