Lexus Financing
#1
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Lexus Financing
After doing some research, the current CPO financing special unfortunately doesn't apply to the GS
For someone with sub 800 credit scores what do you think the rate will
be on 60 month financing?
Car is 2007 GS350, (CPO)
For someone with sub 800 credit scores what do you think the rate will
be on 60 month financing?
Car is 2007 GS350, (CPO)
#2
Lead Lap
Please take this constructively...
To answer your direct question, the rate will be ugly... very ugly.
Financing a 5 year old vehicle for 5 years is a really bad decision. I say this regardless of condition, mileage, etc. 3 years, maybe, definitely not 5. 24 months would be my max on a 5yr old vehicle.
Rarely if ever would I suggest this for a personal vehicle (one who cannot benefit writing it off as a business expense) but leasing a new vehicle might be a good choice for you right now. Why? The used market is tighter than a frog's you know what. That in turn is driving residuals 8, 12 and even 18% + higher than originally calculated (especially on '08 and '09 lease turn ins). Which then drives the residuals being calculated on new leases much higher too... thus substantially reducing "usage" portion you pay for in a lease (along w/ a low MF b/c it's new). It's one of the few times I've ever seen this happen so dramatically and thus why I am even suggesting it.
At the end of the day, a lease would end up being much better and probably cheaper for you over-all w/ less unknown risk. Additionally it would limit your "upside down" risk and leave you an option to buy out (w/ cash or finance) at lease end a nice vehicle whose history you know and/or trust (or not). Of course other things need to be considered like insurance costs and how your state treats leases for tax purposes. However, it's definitely something I suggest you study to understand more and look into for now as an option while increasing your credit score.
Good luck
To answer your direct question, the rate will be ugly... very ugly.
Financing a 5 year old vehicle for 5 years is a really bad decision. I say this regardless of condition, mileage, etc. 3 years, maybe, definitely not 5. 24 months would be my max on a 5yr old vehicle.
Rarely if ever would I suggest this for a personal vehicle (one who cannot benefit writing it off as a business expense) but leasing a new vehicle might be a good choice for you right now. Why? The used market is tighter than a frog's you know what. That in turn is driving residuals 8, 12 and even 18% + higher than originally calculated (especially on '08 and '09 lease turn ins). Which then drives the residuals being calculated on new leases much higher too... thus substantially reducing "usage" portion you pay for in a lease (along w/ a low MF b/c it's new). It's one of the few times I've ever seen this happen so dramatically and thus why I am even suggesting it.
At the end of the day, a lease would end up being much better and probably cheaper for you over-all w/ less unknown risk. Additionally it would limit your "upside down" risk and leave you an option to buy out (w/ cash or finance) at lease end a nice vehicle whose history you know and/or trust (or not). Of course other things need to be considered like insurance costs and how your state treats leases for tax purposes. However, it's definitely something I suggest you study to understand more and look into for now as an option while increasing your credit score.
Good luck
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