sojah

iTrader: (1)

quick question for people who may be facing a similar citiation. i have a gs400 with 2.5 years worth of payments left and it gets about an average of 21 mpg's and i have been looking at picking up an 09 camry hybrid which would be the same car payment but gets an average of 34 mpg as a daily driver (I currently drive about 1600 miles a month). it would be very difficult to make monthly payments on both because i am also making another car payment for my wife's car. what to do???

1. Pay off my current car which would use a little more than half of my total cash savings and then pick up the new car payment.

2. Trade or sell my lovely gs400 (not really to thrilled about this option) and pick up that camry hybrid.

3. Wait a year and see if it would be easier to pay off the lex and then possibly take on a new car payment-- like possibly a gs 450h.

4. Pay a years worth of payments like 5 g's down now on the lex which would make my next lex car payment be due like 13 months from now and then pick up that new car payment asap.

What would you guys do in this situation???

4ntvings

iTrader: (6)

just wait.
why carry 3 payments at once? now thats crazy, especially with our current economy situation.
i'd take your liquid savings and make it work for you. dont blow it on another car right now.
just maintain your GS well and she'll treat you the same.

sojah

iTrader: (1)

i do, and she is... i just keep getting that new car twitch or itch or what not. also my money market mutual fund that used to be around 5% is down to around 2.5% interest. have you seen better lately??

soakgame

if i were in your shoes and had the cash available to pay off my car (and still have some cushion in savings).. then i would do that first

garage the lex.. take it out on the weekends so it doesn't feel neglected

and buy the camry hybrid for commuting =D

RI-Lex

iTrader: (4)

really do the numbers man, i think ppl get crazy about these mpg #'s, I have a bike 40+mpg and a '98 accord 4cyl

Saiji

Be like me and get a Honda Fit!!! =)
nah but it all depends on how much you are comfortable spending a month.
I'm paying 350$ for my lexus and 300$ for my Fit, so it it's not too bad.
Go with your gut instinct, but also do your calculations. If it sounds right, then go for it, if it's IFFY, then I'd wait it off

peanut430

Another factor in the consideration for hybrids is that they do better (mileage wise) in low speed city driving where it can use the electric motor. In higher speed highway driving, it's using the gas engine so the mileage is not as impressive. The other problem with hybrids is the high cost of battery replacement. So together with the high initial cost, hybrids may not save as much $$ as it appears. Of course if gas prices double over the next several months...

Saiji

Yeah and I saw the trend...and it sure is rising rapidly man...i just saw one wiht a 91 octane at $4.80. EEEEEEEKK!!!

GS FONZy

iTrader: (6)

Yes, CAT stock but you have to know when to buy and when to sell.
If you need the cushion than you need it, but if you are only getting 2.5% return on savings, money market CD, etc. you should just pay the car off. Why pay interest whe you don't have too.

sojah

iTrader: (1)

-i feel you on the not paying interest when you don't have to.
-i do know that the camry h. claims to gets average of 34 mpg city and hghy
-my wife pushes the scion xa which is an awesome car for mpg's its like 35-38 depending on the conditions, but she refuses to drive my car so even when she has the day off (like 2-3 days a week depending) i try to snag her (i make the payments remember) xa but if she has to go somewhere during the day she won't drive my lex with 2%tint all the way around and the mucho expensivo rims-0. (thats spanish for very expensive rims)..
-i have heard of the replacement battery cost (only recently since i have been trying to research hybrids) and this does seem like it would seriously not be worth the savings, and i bet this would def. hurt the resale value like say 5 years and 100k miles later.

see i have this disease where once i save xx amount of dollars that i feel the need to A. spend it on upgrades on my gs4, B. get a new car, or C. try really really hard to save it for a day when i do have a new car to add to mods. its a vicious cycle it is..

99GS4

I don't know how true it is but, I read somewhere that it takes like 10 years after the cost of a hybrid vehicle and what it costs to maintain before you actually benefit from fuel cost savings... It's just the instant gratification of not having to go to the pump as much that makes you think you are saving with a hybrid...

wowitztai

iTrader: (1)

Ill just keep the Lexus and ride it out until economy gets better.

J0hnP

Couldnt agree more.

sojah

iTrader: (1)

i have officially just made my decision. i have decided to just take any monthly additional cash after bills and add to the principal on the car loan... for example instead of putting 500$ into my cash money market mutual fund at the end of the month add that $500 to the monthly car payment. since the mutual fund only makes 2.5% right now and the car loan was around 5% this should be just like getting 5% return on my monies in theory. i know it may sound strange but if i were to save that additional money it would be more than half of the savings that i would have seen from the hybrids good mpg rating. if i at least double my monthly car payments paying like 800 instead of 400 i will have it paid off in 15 payments instead of 30. if i paid 1000 a month instead of 400 it would be paid off in 12 months. if i paid 1200 it would only take 10 months... rinse and repeat...

GS FONZy

iTrader: (6)

Yeah, your spanish is not that great

Trying to pay your car off early would be the smart choice over saving on a very low return savings account. You should try a CD with what ever money you got saved up. That way you can't use it and you get a higher return each term. Saving is good, but it's best when you have a plan and goal to go with it. GL