Your payment break down
05-15-06 | 02:39 PM
#16
Here is what I did.
I applied for e-loan for they give me 5.78% for 3 years, ($5000-$45000).
I have $12000 cash. When buying the car, the dealer offered me 5.5% for 8 years if I buy magna shield from them ($600.00) which protects the car (interior and exterior) against spills, tree saps, bird dropping. I took the deal. It came out to be $660.00 per month. I put $2500.00 down because that is the maximum amount they take on credit card.
I put the $12000 in ING direct (4.25%) or Immigrant Direct (4.75%) instead of making early payment since interest rate will go up. Even after tax, I calculate I will be paying less than 2.5% on the cash I have. If one day, saving rate go up higher than my finance rate (5.5%), it will be like paying no interest.
I applied for e-loan for they give me 5.78% for 3 years, ($5000-$45000).
I have $12000 cash. When buying the car, the dealer offered me 5.5% for 8 years if I buy magna shield from them ($600.00) which protects the car (interior and exterior) against spills, tree saps, bird dropping. I took the deal. It came out to be $660.00 per month. I put $2500.00 down because that is the maximum amount they take on credit card.
I put the $12000 in ING direct (4.25%) or Immigrant Direct (4.75%) instead of making early payment since interest rate will go up. Even after tax, I calculate I will be paying less than 2.5% on the cash I have. If one day, saving rate go up higher than my finance rate (5.5%), it will be like paying no interest.
05-15-06 | 04:39 PM
#17
Driver
Joined: Apr 2006
Posts: 119
Likes: 0
From: va
Originally Posted by Kermee
6.5% isn't actually that bad. I've seen MUCH worse and in mid-to-high teens from folks who shouldn't be financing cars at all. The fact remains that whichever bank decided to extend credit to him at 6.5% for 60 months on a 40K installment loan means his credit is marginally Tier 2 if I'm to properly assume it was purchased it last year or early this year when rates were much more agressive. Now it's ironic that some Tier 1 rates are coming in at 7.35% and higher.
The final decision is whether *you* decided to take the loan or not and if you can make the payments. Also, bad credit doesn't necessarily mean someone is a bad person either although it seems to be a legal measuring stick these days. I had a friend who had an $3.32 extra balance with UPS due to a "shipping charge adjustment" because the purchaser told him that it was a "Business" address when in actuality it was a "Residence". UPS sent the bills to the wrong place and never charged the card he had on file with them. It never got paid. UPS sent it off to collections. Finally it ended up on his Equifax report. His immaculate FICO dropped 100 points immediately.
Things happen out of honest mistakes with people and bad credit reports. Don't be too quick to judge. Also, I'm guessing your 2nd mortgage is a HELOC (Home Equity Line Of Credit) which means it's a line-of-credit/revolving debt vs. and installment type like car loans. High LOC's and revolving debt affects your credit worthiness a LOT more than an installment loan. (Ex: $40K HELOC is going to hurt your credit score a lot more than a $40K car loan).
Cheers,
Kermee
The final decision is whether *you* decided to take the loan or not and if you can make the payments. Also, bad credit doesn't necessarily mean someone is a bad person either although it seems to be a legal measuring stick these days. I had a friend who had an $3.32 extra balance with UPS due to a "shipping charge adjustment" because the purchaser told him that it was a "Business" address when in actuality it was a "Residence". UPS sent the bills to the wrong place and never charged the card he had on file with them. It never got paid. UPS sent it off to collections. Finally it ended up on his Equifax report. His immaculate FICO dropped 100 points immediately.
Things happen out of honest mistakes with people and bad credit reports. Don't be too quick to judge. Also, I'm guessing your 2nd mortgage is a HELOC (Home Equity Line Of Credit) which means it's a line-of-credit/revolving debt vs. and installment type like car loans. High LOC's and revolving debt affects your credit worthiness a LOT more than an installment loan. (Ex: $40K HELOC is going to hurt your credit score a lot more than a $40K car loan).
Cheers,
Kermee
Ah, you lost me there. I didn't say anything about his rate being bad. I never made any judgements about his character. I just said that assuming $40k of debt on a depreciating asset probably wasn't a great financial move, especially for someone with a poor credit history.And no, my second mortgage is not a home equity credit line. I stay on top of my credit, and know where I stand all the time (TransUnion: 777 Equifax: 802 Experian: 814) I cringe when I see what people are doing these days with debt assumption, because it's going to come back to bite us ALL in the ***.
Last edited by monkeyfarm; 05-15-06 at 04:44 PM.
05-15-06 | 10:55 PM
#19
Lexus Test Driver
Joined: Mar 2006
Posts: 952
Likes: 1
From: Sunny So Cal
Originally Posted by jinetix
I got mine at Longo Lexus. I'm financing through a bank though, not LFS.
Anyway, I just realized I didn't even answer the original question of this thread...
My payment breakdown:
$12k cash down
Financed $35k @ 5.99%.
Monthly payment of $588 for 5 years.
05-15-06 | 11:14 PM
#21
Lexus Test Driver
Joined: Dec 2005
Posts: 1,114
Likes: 0
From: Clearwater, FL
Originally Posted by monkeyfarm
Dude, what the hell were you thinking? If you have bad credit, assuming $40k in dept probably isn't the best way to remedy the situation. Your car loan is more than my second mortgage.
05-16-06 | 04:27 AM
#22
Driver
Joined: Apr 2006
Posts: 119
Likes: 0
From: va
Originally Posted by EBMCS03
Dude where can I get a mortage for under $770???? I'll sell my car and buy a house!
05-16-06 | 06:42 AM
#23
Lexus Champion
Joined: Oct 2002
Posts: 11,205
Likes: 11
From: The Woodlands, TX
Originally Posted by slowandlow
i was told i could do a 3 year lease for 10k and that is with sport package. is this a good price?
whoa.....what?
are you referring to a $10K upfront payment for a 36 month lease?
crap, that comes out to only $277/mo!?!?!?!
even for a 250 that's a great deal assuming no other money down besides tt&l..
05-16-06 | 11:52 AM
#24
Originally Posted by bagwell
whoa.....what?
are you referring to a $10K upfront payment for a 36 month lease?
crap, that comes out to only $277/mo!?!?!?!
even for a 250 that's a great deal assuming no other money down besides tt&l..
are you referring to a $10K upfront payment for a 36 month lease?
crap, that comes out to only $277/mo!?!?!?!
even for a 250 that's a great deal assuming no other money down besides tt&l..
Look at "1Pay Lease" and "Multiple Security Deposit" (MSD). Lots of people don't take advantage of MSD which *significantly* lowers your monthly lease payments. I remember someone here doing the 9 additional deposits and the payments dropped by almost $60/month... and it's refundable at the end of the lease. If that's a 36 month lease, you just saved yourself a little over $2K over 3 years.
Cheers,
Kermee
05-16-06 | 06:11 PM
#25
Lead Lap
Joined: Apr 2006
Posts: 673
Likes: 0
From: CA
Originally Posted by monkeyfarm
Well, for starters, the midwest. But as I said, it's my second mortgage... i.e. it's pretty common practice to take two 30 year fixed loans if you're not going to put a large downpayment on a house (which I didn't). One for 20% of the house price, and the other for the rest. It avoids having to pay PMI.
DOH! You mean Location: VA doesnt mean you're in Southern California?
05-16-06 | 10:32 PM
#27
Pole Position
Joined: Mar 2006
Posts: 229
Likes: 0
From: S.Dakota
Originally Posted by Kermee
FYI- http://www.lexus.com/financial/leasi..._programs.html
Look at "1Pay Lease" and "Multiple Security Deposit" (MSD). Lots of people don't take advantage of MSD which *significantly* lowers your monthly lease payments. I remember someone here doing the 9 additional deposits and the payments dropped by almost $60/month... and it's refundable at the end of the lease. If that's a 36 month lease, you just saved yourself a little over $2K over 3 years.
Cheers,
Kermee
Look at "1Pay Lease" and "Multiple Security Deposit" (MSD). Lots of people don't take advantage of MSD which *significantly* lowers your monthly lease payments. I remember someone here doing the 9 additional deposits and the payments dropped by almost $60/month... and it's refundable at the end of the lease. If that's a 36 month lease, you just saved yourself a little over $2K over 3 years.
Cheers,
Kermee
On the average what is the security deposit on a 40k IS?
05-16-06 | 11:47 PM
#29
Driver School Candidate
Joined: Apr 2006
Posts: 16
Likes: 0
From: CA
9800k down .. financed about 39k .. so about 560 for 7 years @ 5.25 percent. Oh yeah I did the seven because it was no different from five to seven and I could pay it off at anytime with no penalty. Sweet deal I thought and I also got suckered into buying the magna shield. heheh.. 
05-17-06 | 02:39 AM
#30
Originally Posted by Payam
Are you saying you financed 38k at 6% for 3 years and your payments are $748???? Or is that a lease?
No lease, sorry forgot to point that out. Yes it is financed though lexus.