LexusPride

I don't know why anybody would pay cash for a NEW car, you swallow about $7k as soon as you leave the dealership unless you got it at cost. A car is a horrible investment and more often than not you will lose money, not accrue any. To me, the avg. owner of this class of car rarely if ever beats on it, and more often than not they are kept in great condition. So, unless you "need" to be the first owner, or love that new car smell, why not get a 1 to 2 year-old GS? I mean, they have approx. an 8 year model lifecycle and updates are barely noticeable from year to year which means an 2006 will still look like the 2012 version. I currently have an 01' GS300 w/80k miles and it literally looks new. The key difference is that an 05' (last model year) will still cost approx. mid-thirties while I'd be lucky to get low teens at best! Yet, they look identical in style and condition. So I plan to wait for the 08' refresh (which should be only major change on this model) and get one in 09' w/low miles and save approx. $10k that someone else absorbs.
Just my .02

Cut-Throat

It's a lot like anything in Life. When you buy a new car, you get exactly what you want, color, options etc. - If you want to save 10 grand, you make some compromises. - To some it's important, to others it's not. But to say that you don't know why is more a statement of your knowledge, than stupidity of others.

When I started buying new cars, it was with Honda Accords. I started looking at dealerships to try to find the right car. When I found one, the price was high enough that it did not make sense for me to go with a used car. When I buy new, I can do so over the phone. I don't have to go see the car. That is a big plus for me! Makes shopping a piece of cake.

LexusPride

True, but I also find that most GS's are fully loaded and there are an abundance in stock on the lot to choose from. A month ago my dealer had over 20 06/07s pre-owned to look at and almost all were AWD (live in MA). Again, if you are very specific about a color combo/options you have less to choose from used, but I don't see the GS selling like hotcakes around here. Of course that helps when buying new too, but I find the more particular I am, and if it's not in stock I have a harder time knocking down the price if it's not sitting on their lot.

cliffud

iTrader: (3)

Wow KenBT - way to put down a fellow member.

Getting back on topic, the thread starter was asking if a $900/month payment for the next 5 years is a "smart move". I personally think that if he isn't convinced a $900/month payment for the next 5 years is a smart move for him, then he probably shouldn't be buying the car in the first place.

The question of "is it a smart move" should probably be "what am I driving right now and does it meet my needs?" After that, perhaps the question would be "What else can I do with $900/month other than drive a new car?"

Of course it's different for everyone. From a personal experience, I invest my money into a system where my returns come close to triple digit percentages so is it a "smart move" to trade up my 98 GS3 to a 07 GS and decrease my investment budget $900/month? Haha! Nope.

I'll happily drive the older car while padding up the bank account.

LexusPride

ok..so I don't have money based on what? Your profile says you own a 92 ES300, yet my owning an 01' GS which cost more yet I got it w/4k mi. on it and paid cash is foolish?? You mean because I look at a highly depreciable asset diff. than you somehow makes me wrong? My point was that I personally don't find it logical to take the hit on a mint condition used Lexus as I could find better things to do with that saved $$.
But since you told me I know don't even have $$ well..

GlockMan9c

In my opinion, if you are buying a luxury car and you do not have the ability to put down atleast half as the down payment, you should not buy it. Of course there are exceptions, but not many.

Chances are your investments are not going to pay you more interest than the car loan will charge you especially after taxes.

This theory does not hold up for a car under $25,000 since everyone needs reliable transportation.

Let's face it, if you are buying a $50K car and you are worried at all about the down payment or monthly payments, you should NOT buy it. Buy a $25K accord and bank the rest for the future upgrade.

Of course, just my opinion.

GlockMan9c

Do you think you are going to sell your car for more than you bought it for? Come on. Apples to apples.

Real Estate = Investment
Car = Liability