Hi I started reading this forum a couple days ago. I am interested in and test drove an IS250 AWD with navigation (the test car also had parking assist) and loved it, but my question is this:

My dealer wants MSRP, he said maybe they can take a couple hundred off, but basically I'd be looking at about 38,000 and change. I told him I think I may wait a couple months until prices come down, and he did mention that those savings may be minimized if rates go up. I plan on putting down 10,000 and I can get 5-5.5 APR right now through my credit union, but do any of you think interest rates will go up significantly in the next couple months. I did read about some people getting discounts, but at my dealer they had one IS350 (non-nav), the demo IS250 AWD, and one other IS250. They told me they are pretty much selling them as they get ordered at MSRP.

Financing 28,000 now over 60 months at 5.5%-my payment is 535/month
Financing 26,000 if rates do go up assuming 7.5%-payment of 521/month

I want a car right now, I don't need it. I'm single and I have a 01 Pathfinder that I am keeping (almost 100,000 miles) so the IS's size isn't that important to me, and I'm 6'3", so no one is going to sit behind me in most cars anyway.

Thanks for any help.

 

I finance 30k for 60 mos @ 5.99%

 

I did just find these two articles speculating on interest rate increases. Maybe the money I save on gas can help offset the extra few dollars a month if I do it now

http://news.moneycentral.msn.com/tic...130&ID=5318261
http://www.bloomberg.com/apps/news?p...d=a7chbXC6KY7s

 

I got 5.25 % for 60 months a few weeks ago.

Counterpoint on rates (only my opinion):

Housing pricing and refis are heading South due to the interest rate increases. There is some sentiment that the Fed will hold where they are for a while.

Plus the new guy Bernanke may take a due no harm attitude when he takes over for Greenspan.

 

Let me help you out here - I'm a VP at a Regional Bank in charge of Indirect Lending (this means Car Dealer Paper) and I'm the guy in charge of setting rates. We just raised rates yesterday and the industry is moving up (quickly) - all of the banks are struggling with Net Interest Rate Compression from rates being so low in 2004 that all of us are trying to move rates up a quckily as we possible can - my advice, by the Car now if your concerned about rates - because in 3 short months they'll be up by .50 to .75 bps, from where they are today.

 

You know what is "interesting"? I have never ONCE heard a banker agree that rates might actually stay stable (or even decrease even when they were doing so EVERY month). I "think" that we might appreciate your post if it wasn't the same ole thing. My bank has been raising my Home equity rate consistantly for the past year and a half. In theory mine is tied to the prime rate but in practice it sure does not seem that way. When I first took out my HE it was around 4%. It's now close (or maybne even at 7%). My car loan rates are 2.99% and 4.75% therefore I personally will be paying off the HE loan in then next six months and keeping the cars I currently have (and their sub 5% interes rates).

PS - The guys on Wall Street are saying your wrong BTW (They say the rates will stablize and the markets are reflecting that). Your Bank just appears to be trying to make money whereever it can (much like most banks I guess)...

 

Corporate America Credit union is running a special of 3.99% for new members only. They only require that you set up a checking or savings account with $100 to get this deal.

 

Hey bunka - I'm doing my best to give you an insider look at what's going on in the automobile finance arena - the fact that you have car loan rates at 2.99 and 4.75 speak to my point - as my internal cost of funds raise it places more pressure on my current portfolio of low rate paper (which on average have remaining terms of 36-42 months). As for Wall Street, they rarely speak in terms of short term interest rates (which is what an automobile loan is) they are referring to long term rates - so try not use the term "rates" generically. Just do me a favor and try not personally attack my profession - I'm sure there are people in your line of work who won't give you a straight answer - if rates were going down I'd tell you...as for trying to make money - well take a look around, cause if your business isn't trying to make a profit you won't be there very long...

 

I apologize for the tone. I didn't intend to attack you but I see now that my post comes across that way. It does sound like the banks are trying to play "make up" for the lower rates previously extended. I can see how this puts pressure on your company. I had a friend recently tell me that he was "in the business" about fuel prices and that they expected increases (as they were raising their rates to their their clients). This was around a month ago. Of course, prices for fuel have dropped about 30% since that time. When I ask him what's up he says "If I could predict the future, I wouldn't be working for someone else..."

 

Thanks for the help, I'll probably talk to my dealer tomorrow, see if they can at least throw in free Sirius installation (they were charging about 500-750 for it). I also sent out a couple e-mails to other dealers requesting quotes, I'm hoping for the best.

 

Thanks Bunka, and Amen to that....Spy good idea - always ask for as much as you can when sitting at the dealership - heck, the worst they can say is no....

 

Have you factored-in taxes and tags? What is the invoice price? Coming down from the MSRP a few hunderd bucks is not much of a deal in my opinion. Because you're dealing with a credit union instead of a bank, there is some likelihood that you would still receive a favorable interest rate on a car loan 2-3 months from now. Historically, credit unions have always offered the most favorable rates for car loans. If it were me, I would wait the 2-3 months. By February `06, the IS will have been on the U.S. market for almost 6 months. February is also a slow month for car sales. In addition, this will give you time to explore other Lexus dealerships nearby (Pa., Md. and N.J.) to see what kinds of deals they would be willing to make to a ready buyer. In suggesting that you wait, I am most motivated by the fact that while other dealerships appear to be backing off IS MSRPs in the thousands of dollars (read more of this forum), this dealer is only hinting at coming down a couple of hundred. I also think that if you buy in February, you will still receive a favorable interest rate from your credit union. In this connection, some credit unions will allow you to "lock" an interest rate for up to 30-days. You may want to explore this possibility with your credit union. Also, you can ask your credit union if they have plans to offer special rates on new car financing in the upcoming months. I have been dealing with my own credit union for almost 20 years, and I would not think of going anywhere else for a car loan. By the way, to give you some idea about interest rates for car loans at credit unions, I financed the purchase of an `04 GX470 for my wife in October `04 for 5.3%, and in August `05, I financed 50% of the purchase of an `05.5 Audi A4 2.0T Quattro for 3.2%. [I've since paid-off the GX.]

If you can, wait a little while.

 

I do think now I will wait unless they can take $2000 off. May send that Rallye Lexus in NY and ask about the 3500 discount people have talked about (. Might be worth it to rent a car one way. I also read that (on Edmunds I think) someone lived in Texas, is buying in Florida, and shipping the car for 500, and he's saving about 2000 by doing that.

 

Ha ha, I just sent Rallye an email too! Same with Warnock! Lexus is known for cust. service, maybe you could get a 1 way flight and have them pick you up at the airport? $150 flight to save 2 or 3 grand... (assuming they're honest, and don't pull any tricky last minute moves)

Anyway, back on topic: My credit (Apple FCU) offered me 4.5% (their best rate) for a 5 year car loan. I'd investigate your company's credit union (if they have one), and get your credit score -- from what I've seen, that totally determines which rate you get.

 

Check with American Express about two weeks ago I called them and they run promotions all the time. They said they would take over my car loan for the duration for 3.9%. It is worth checking out. Being a lender I can say rates have been moving up.