Car trade and finance questions | FerrariChat

Car trade and finance questions

Discussion in 'General Automotive Discussion' started by Husker, Feb 13, 2008.

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  1. Husker

    Husker F1 World Champ

    Dec 31, 2003
    11,790
    western hemisphere
    #1 Husker, Feb 13, 2008
    OK, I made a deal today on a used 2007 Mercedes GL. $49,500. Now, I have a 2001 Lexus LX470 w/80K miles that will probably sell for $20-21K. I have a Lexus RX 330 w/110K miles that gets slightly better gas mileage that's worth probably $12K.

    First question, which would you keep?

    Second question, on the balance that I will owe (from $30 to $40K), would you just bust out the cash and pay the diff? Put down another $10K and finance the rest? Other? I can borrow for about 5.25% for up to 60 mos.

    If I pay cash, I'm cutting my cash "reserves" (actually in stocks) in half. If I finance, I make payments, but I keep my cash. I have plenty of other assets, but I hate to drain down my more liquid stuff - stuff I can "sell" with the click of a mouse.

    I know everyone has a diff. opinion on this, but I'd like to hear everyone's take. My first inclination is to keep my cash, make payments. I can always pay the note off. That makes it a forced savings in a way.
     
  2. ADON

    ADON Formula 3

    Feb 8, 2007
    1,059
    #2 ADON, Feb 14, 2008
    Tough call with lots of variables. It would totally depend on monthly income, assets and lifestyle. Sounds to me like you have very little liquid assets. I would not touch it. If you take your new GL out that you just sold half your liquid assets for and get a in a major car crash, you or family member get a major illness, you're going to be in trouble.

    If you finance and something bad comes up, you can sell the car and buy a Yugo. You will still have transportation, you will still have your stocks, and you can eat Top Ramen.



    I say finance even though I'm a major opponent to 60 month financing. Your $50K car just became a $75K car.
     
  3. wbuild

    wbuild Karting

    Nov 27, 2004
    108
    north carolina
    #3 wbuild, Feb 14, 2008
    but neither one of those vehicles is trail rated.
     
  4. Hoodude

    Hoodude F1 Rookie
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    May 5, 2007
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    #4 Hoodude, Feb 14, 2008
    huskr,I'm too befuddled by the options on which one to keep [the Lx is like the G,the Rx is a good traveller/ok gas,both are keeprs,etc ad finitum] but all that said you just can't beat a Cruzer[the Lx]...
    and as far as payment goes too many options here too,but going deep reserve wise scares me,just imho..
    but kudos on the G deal $wise,that's a really good buyer price,on a sweet truck...
    you mind saying how many miles,color,options?
     
  5. Husker

    Husker F1 World Champ

    Dec 31, 2003
    11,790
    western hemisphere
    #5 Husker, Feb 14, 2008
    2007 GL450, "certified pre-owned", 30K miles, pewter, P1 pkg, sunroof pkg, rear entertainment, chrome wheels.

    I thought it was quite a good deal.
     
  6. Bullfighter

    Bullfighter Two Time F1 World Champ
    Lifetime Rossa Owner

    Jan 26, 2005
    22,370
    Indian Wells, California
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    Jon
    #6 Bullfighter, Feb 14, 2008
    You can always pay ahead. I financed my SLK for 36 months and doubled up on payments as cash flow permitted. I think I ended up paying it off in under 2 years. Check with your dealer, but there should be no penalty for that, and you will save interest charges.

    5.25% isn't a painless interest rate.

    As far as which to sell, I think the big Lexus overlaps with the new Merc, so unless you need two behemoths I'd sell the LX. Then again, my big practical car is an Audi TT so what do I know...
     
  7. Hoodude

    Hoodude F1 Rookie
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    #7 Hoodude, Feb 14, 2008
    ...no spit
    +1....and all the rite bells...wtg
     
  8. atomicskiracer

    atomicskiracer Formula 3

    Mar 30, 2005
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    Ryan
    #8 atomicskiracer, Feb 14, 2008
    I would also take into account the amount of depreciation left on the LX relative to the RX....
     
  9. S Brake

    S Brake F1 World Champ

    Aug 3, 2006
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    #9 S Brake, Feb 14, 2008
    True, but the real question is whether or not they will blend.
     
  10. Fnix

    Fnix Karting

    Jun 23, 2007
    87
    Orlando, Florida
    #10 Fnix, Feb 15, 2008
    While on the topic; how long after financing a car is a good time to refinance? I assume when you have really good credit?
     
  11. Husker

    Husker F1 World Champ

    Dec 31, 2003
    11,790
    western hemisphere
    #11 Husker, Feb 15, 2008
    Refinance what?
     
  12. Fnix

    Fnix Karting

    Jun 23, 2007
    87
    Orlando, Florida
    #12 Fnix, Feb 15, 2008
    The car loan, you know lower the interest rate on it.
     

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