Qualifying for a loan is great, but not my point. As a very simple example, let’s say the Lexus cost $30,000. A $30,000 loan at 3% for four years would have a $664/month payment. If the dealership gave you $20,000 for your trade and you applied that toward your loan, you would only need a $10,000 loan. At 3% interest for 4 years, a $10,000 loan would have a $221/month payment. If your goal is to manage cash flow, you might not want a $664/month payment. Trading-in the car at the time of sale will reduce the loan amount. You really can't do that if you sell your car privately after you buy the Lexus.
Without turning this into too much of a financial discussion, would you rather have a high monthly payment and that $20,000 in the bank? Maybe you do. What’s the 4-year opportunity cost on that money? Do you think you can average MORE THAN the interest rate you must pay on that used-car loan over the next four years? And that needs to be after tax growth for a fair comparison. And how would you risk adjust that return because there is NO place to get 3%-4% guaranteed right now for four years? Of course if you had that $20,000 in the bank right now, you could withdraw it and reduce the Lexus' loan amount. When you eventually sell your 6-6, you could refill that bank account. There are many ways you can approach this, but this is the line of questioning I had hoped to raise.
If you don't have an extra $20,000 in cash right now (or someone willing to loan it to you) and you don't want a $600+ monthly payment, you may have no choice but to trade in your 6-6 to the dealership. And by the way, I'm pretty sure Arizona applies a trade-in tax credit based on your state's sales tax (6.5%) plus any additional local taxes based on where your dealership is located.
Thanks for all your advise man.
I sold my 2014 EX-L 6-6 several months ago to a private buyer because the seats were giving me lower back pain. Like above i met the buyer at his local bank, signed some paperwork (i still had a lien), the bank cut me a check for the difference, and the paid off my loan. That same day I went into a Lexus dealership and bought my 2016 IS 350 F Sport. Lexus like many other manufacturers are offering pretty good interest rates on new cars.
I miss driving the six speed manual accord, but I sure love my Lexus. My only complaint is I wish it had more power for the price point.
Yeah i saw when you posted about the Lexus. It looks pretty sweet! I might have to copy you haha.
If I may, with all due respect, I think you're going about it bass-ackward. You've fallen in love with the new car, and it's available. If it were me, I'd take the time to sell your car privately. Rent a car for a few days, then fall in love with the new one. Believe me (former car sales guy), whatever inconvenience it takes to sell your car privately is nothing compared to the b.s. you get at a dealer with a trade-in.
Thanks for you advise! I think I will most definitely sell it privately.
This is good advice, but just remember that the time between when you sell your current car and when you can actually local the new car you want and do the deal, may be weeks or even a month or more if you are dead set on a particular color or trim. You could be looking at renting a car for far longer than you might anticipate and really eat into the cost savings vs trading it in. Convenience is worth something, right? Now, if you just want a slightly used Lexus GS and are willing to accept a few different colors, selling privately might work out great.
I'm just set on white or lighter colors haha.
Yeah I don't mean to "mother" anyone here or to get off topic- but other than likes on the Facebook, your health is the most important thing. You don't want to get in another car and find your back/leg pain following you.
If the therapist told you to do stretches and get a different chair at work, walk more, lose weight, etc....do it.
I apologize for getting in your business- but I sold my 6 speed Stealth Twin Turbo to get my automatic Accord because of left knee issues (wrestling/motorcycle injuries). One week later, I felt much better, but not perfect. My cousin is close friends with one of the finest orthopedic surgeons in Chicago- so he asked me to stop in.
In less than an hour, I was told because of my flat arches, I needed to change shoes or get arch supports because everything was thrown out of whack. I am fine now. No knee issues.
Oh yeah I'm keeping up with what the PT suggested.
Find out what is wrong with your back. Changing the car may or may not do it for you.
This is true. I did a search and found out that Lexus's have good seats for people with lower back issues.
according to edmunds, Arizona does have trade-in tax credit :
see note 2
According to C&D, the IS350 F Sport has a slower 5-60 time and is one mph slower in the quarter mile than the 6-6. Even if the two cars were equal in straight line acceleration, considering the F Sport costs about 50% more I understand White’s “more power for the price point” comment.
Not knowing anything about the cause of Latin’s back issue, the GS Lexus is a VERY comfortable car.
Originally Posted by GreenandGold831
He's in AZ so he wouldn't even need a permit to carry so I wouldn't be afraid of interacting with strangers.