View Poll Results: Cash or finance?
Cash
35
63.64%
Auto loan
17
30.91%
Lease
5
9.09%
Multiple Choice Poll. Voters: 55. You may not vote on this poll
Do you pay cash for your Lexus cars or finance them?
05-06-19, 03:14 PM
#31
Lexus Champion
05-06-19, 03:21 PM
#32
Racer
As to the OP, we've done both -- wife paid cash for her ES before we met and I've financed for three years.
Last edited by FatherTo1; 05-06-19 at 03:24 PM.
05-06-19, 07:38 PM
#33
Lexus Champion
I've always wondered about this. I live my life on my American Express for the Membership Rewards points. Did they eat the "use" fee that the cards charge them or did you have to pay a tad more?
05-06-19, 09:57 PM
#34
Lexus Test Driver
What you say is true. At the same time I don't mix investments with disposable income, unless it were a play account. Someone here (I would say 'Captain Obvious') said you should have invested in amazon stock, not had savings, you would have gotten x% return. That isn't how I look at it, and explained why eventually.
I guess your way is saying a new BMW 330i costs $59k and I could finance it 100% instead of putting anything down. I'll put the downpayment of $40k into the market instead, and pay 2% on the loan (I think higher today). Did you really put 40k into the market? And if you did, what if the market has a downturn?
edit p.s. let me actually prove you to be right. I took $29,999.99 out of savings in Dec. 2006, and plunked it down on the 335i. Actually, it was play money from my brokerage account, and I wanted to spend it before it took a downturn, so technically it went from brokerage to savings, and was withdrawn from savings. If I didn't buy a car it would have stayed there.
In reality, I should have financed the 335i 100% because from 2006 to 2019, the stock market went up maybe 1.7x. I wanted a payment under $400 so I had to have a downpay--$400 is based on my job. My salary is more than triple today, but I still only feel comfortable with maybe $500/mo., that's it. So when I see $840/mo. for the 330i lease, there's no way it could happen for me.
That ~ $30,000 that I put down would be worth maybe 51,000 today, so yes, it would have been better to finance 100% and leave it in the market. It's just that the two things are different. Like for me, selling facebook at 41, how dumb was that? Buying CSX in 2009 during the recession, how smart was that? Point being these decisions have nothing to do with a car purchase...but you are not wrong, you are correct.
I guess your way is saying a new BMW 330i costs $59k and I could finance it 100% instead of putting anything down. I'll put the downpayment of $40k into the market instead, and pay 2% on the loan (I think higher today). Did you really put 40k into the market? And if you did, what if the market has a downturn?
edit p.s. let me actually prove you to be right. I took $29,999.99 out of savings in Dec. 2006, and plunked it down on the 335i. Actually, it was play money from my brokerage account, and I wanted to spend it before it took a downturn, so technically it went from brokerage to savings, and was withdrawn from savings. If I didn't buy a car it would have stayed there.
In reality, I should have financed the 335i 100% because from 2006 to 2019, the stock market went up maybe 1.7x. I wanted a payment under $400 so I had to have a downpay--$400 is based on my job. My salary is more than triple today, but I still only feel comfortable with maybe $500/mo., that's it. So when I see $840/mo. for the 330i lease, there's no way it could happen for me.
That ~ $30,000 that I put down would be worth maybe 51,000 today, so yes, it would have been better to finance 100% and leave it in the market. It's just that the two things are different. Like for me, selling facebook at 41, how dumb was that? Buying CSX in 2009 during the recession, how smart was that? Point being these decisions have nothing to do with a car purchase...but you are not wrong, you are correct.
05-07-19, 10:04 AM
#35
I have found dealers are more willing to negotiate if (they think) you're financing. They usually stand to make more money on financing, so the discounts are usually bigger. Once I get the number to be where I want it to be and it's in writing, I suddenly decide to pay cash. I have used this tactic with my own cars and while helping friends/family buy cars and it's always worked. I have had a couple dealers come back and say they agreed to a specific number due to their thought that I would be financing, but it's never been in the fine print, so they have honored the deal. The old saying "cash is king" doesn't seem to be the case anymore when it comes to negotiating power.
05-07-19, 12:12 PM
#36
Lexus Fanatic
I have found dealers are more willing to negotiate if (they think) you're financing. They usually stand to make more money on financing, so the discounts are usually bigger. Once I get the number to be where I want it to be and it's in writing, I suddenly decide to pay cash. I have used this tactic with my own cars and while helping friends/family buy cars and it's always worked. I have had a couple dealers come back and say they agreed to a specific number due to their thought that I would be financing, but it's never been in the fine print, so they have honored the deal. The old saying "cash is king" doesn't seem to be the case anymore when it comes to negotiating power.
edit looks like as of Jan 2017 those bogus fees still exist. I still wouldn't pay them so looks like no new BMW 4ME
https://www.bimmerfest.com/forums/sh...d.php?t=962553
Last edited by Johnhav430; 05-07-19 at 12:56 PM.
05-07-19, 12:36 PM
#37
Driver School Candidate
Money factor on leases is so low, it just makes sense. Plus off-load risk of depreciation to Lexus and avoid paying sales tax on the entire cost of the car (makes sense if you aren't going to keep car more than 4-5 years).
05-09-19, 09:06 AM
#39
Super Moderator
Cash. It was kind of an odd reason. I needed to have a title in hand, because I was moving to Mexico the following week and I needed to show a paid off title to take my RX300 over the border, otherwise with financing I would have had to wait too long to get a letter of permission to take it across the border. That was 2002, but it still seems like yesterday.
05-09-19, 10:18 AM
#40
All of the above depending on cost of money.
Loan most common.
We tend to keep our vehicles over 5 years (often over 10) so minimal leasing, but has been done for specific life stages.
Loan most common.
We tend to keep our vehicles over 5 years (often over 10) so minimal leasing, but has been done for specific life stages.
05-09-19, 03:23 PM
#41
When I bought our 2010 RX 450h a few years ago I told the lady it was going to be a cash deal, just wham bam and done. I had assumed that would be music to her ears in that there was speed and certainty to the deal, but maybe they don't look at it that way. Still, I imagine there are the usual sales pressures and if you walk in on the last day of the quarter they are much more eager to close the deal quickly, that kind of thing.
05-12-19, 07:11 AM
#42
Lexus Fanatic
When I bought our 2010 RX 450h a few years ago I told the lady it was going to be a cash deal, just wham bam and done. I had assumed that would be music to her ears in that there was speed and certainty to the deal, but maybe they don't look at it that way. Still, I imagine there are the usual sales pressures and if you walk in on the last day of the quarter they are much more eager to close the deal quickly, that kind of thing.
People think cash will get them a better deal, but its usually the opposite.
05-12-19, 11:43 AM
#43
Cash, even the RCF, but it was certified pre owned, only $54k at the time. I have also never had a car payment.
05-12-19, 12:54 PM
#44
That is why when buying you tell them you have a loan with your bank with an interest rate you like and get them to work the lowest number as possible. then at the last second you tell them your paying cash and they are forced to sell you the car @ the price because it is the price yall agreed upon. ive done it and never made a manager so mad at me, they honestly called me an *******. LMAO
05-12-19, 12:55 PM
#45
I've always wanted to pay for a car with credit card but I thought dealerships are reluctant to allow this due to the merchant fees. I can understand them allowing $5000 total on credit card but not the whole purchase price. Pretty cool that the sales manager allowed it.
As to the OP, we've done both -- wife paid cash for her ES before we met and I've financed for three years.
As to the OP, we've done both -- wife paid cash for her ES before we met and I've financed for three years.
