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Do you pay cash for your Lexus cars or finance them?

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Do you pay cash for your Lexus cars or finance them?

 
Old 05-06-19, 03:14 PM
  #31  
LexBob2
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Originally Posted by mewtoo View Post
When I bought new, I took an auto loan from the dealer then pay it off in the first month.
I recently did the same thing with BMW Finance only I paid it off with the 2nd payment. They were offering a nice incentive for financing.
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Old 05-06-19, 03:21 PM
  #32  
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Originally Posted by pvsmith View Post
I bought my Lexus on credit cards. The dealer allowed me to put $5,000 per card on it. I racked up the points and paid off all the cards within a couple of weeks (I didn't want to risk getting a past-due charge.)
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.

Last edited by FatherTo1; 05-06-19 at 03:24 PM.
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Old 05-06-19, 07:38 PM
  #33  
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Originally Posted by pvsmith View Post
I bought my Lexus on credit cards. The dealer allowed me to put $5,000 per card on it. I racked up the points and paid off all the cards within a couple of weeks (I didn't want to risk getting a past-due charge.)
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?
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Old 05-06-19, 09:57 PM
  #34  
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Originally Posted by Johnhav430 View Post
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 could see your point of view. However, if my average return on my portfolio has been much higher than the 2% interest rate, I would make the bet that on average, my investment portfolio will return the expected rate. You can't time the market but the average takes into account the downturns too. Who's to say that you miss an upturn in the market and you don't make 10x the return? Its the same reason I still have student debt...its free money at 2% long-term. I have a significant net cash position but I choose to leverage many things because debt is sooooo cheap these days.
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Old 05-07-19, 10:04 AM
  #35  
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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.
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Old 05-07-19, 12:12 PM
  #36  
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Originally Posted by COOLIS View Post
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.
My dad always says what he wants out the door. So many shenanigans disappear. I've said it before, it did not work at Honda (he tried one dealer, maybe it would work at another). One example? There is a pre-printed fee right on the invoice, added for nothing. In order to meet my dad's out the door price, everything else has to be removed, come down, or the fee hashed out with a pen. BMW tried that with me where they "forgot" Training and MACO fees which existed for MY 2007. I told them I forgot that I wanted this car (the fees were almost $800). Suddenly the fees went away. Shame it has to be that way, I was around 2 weeks into the order and I did want the car. But I wasn't about to fall for that. I posted on the forum and people came back yes those are legit fees that don't appear on edmunds etc. Which is why out the door is important.

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.
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Old 05-07-19, 12:36 PM
  #37  
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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).
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Old 05-08-19, 03:31 PM
  #38  
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Depends on the financing rate. Sometimes the money is almost free makes no sense to pay cash so I finance and put it on autopay.
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Old 05-09-19, 09:06 AM
  #39  
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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.
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Old 05-09-19, 10:18 AM
  #40  
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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.
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Old 05-09-19, 03:23 PM
  #41  
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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.
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Old 05-12-19, 07:11 AM
  #42  
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Originally Posted by riredale View Post
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.
Common misconception dealers like/prefer cash buyers. Dealers make money on financing, a cash deal makes them less money.

People think cash will get them a better deal, but its usually the opposite.
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Old 05-12-19, 11:43 AM
  #43  
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Cash, even the RCF, but it was certified pre owned, only $54k at the time. I have also never had a car payment.
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Old 05-12-19, 12:54 PM
  #44  
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Originally Posted by SW17LS View Post
Common misconception dealers like/prefer cash buyers. Dealers make money on financing, a cash deal makes them less money.

People think cash will get them a better deal, but its usually the opposite.
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
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Old 05-12-19, 12:55 PM
  #45  
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Originally Posted by FatherTo1 View Post
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.
It wasn't just a total of $5,000, but that was for each credit card. I had five credit cards, and could put the entire $23,000 of the car's price on the credit cards.
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