paid ca$h or finance your lexus?
#16
Lexus Champion
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I put $25K down, my credit score was 73X something and I got 7.45% from Toyota, which was outrageous in May of '06.
I took it anyway as I got $4K off MSRP when many were still paying close to MSRP and I paid the car off in 8 months. I got a quote from e-loan for just under 6% and the same from my bank so the delta in total interest was just over $100 for those 8 months.
I took it anyway as I got $4K off MSRP when many were still paying close to MSRP and I paid the car off in 8 months. I got a quote from e-loan for just under 6% and the same from my bank so the delta in total interest was just over $100 for those 8 months.
#17
Lexus Champion
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That works IF you have the discipline to really invest the money, and if you really can get 8-9% on your investments (pre-tax). The last few years it's been easy to outpace that rate, but if we go into a bear market all bets are off. In my experience most people talk about investing this money, but they rarely do.
#18
Lexus Champion
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If you know where we can get >10% rate of return on our investment without any risk, I'm all ears. If you can't do it without any risk, you're gambling, pure and simple.
Even if you could get a 6% interest rate, you'd still have to get something over 7% to make it worthwhile. I still don't know of any investment that doesn't include the element of risk.
#20
Lexus Test Driver
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Let's be a little optimistic and for argument's sake say the OP can get 8.5% (instead of the 9-10% he was quoted). If he finances $10,000 and invests that money instead, he'd have to get a 10% rate of return on his investment to break even (paying the minimum 15% long term capital gains tax rate.)
If you know where we can get >10% rate of return on our investment without any risk, I'm all ears. If you can't do it without any risk, you're gambling, pure and simple.
Even if you could get a 6% interest rate, you'd still have to get something over 7% to make it worthwhile. I still don't know of any investment that doesn't include the element of risk.
If you know where we can get >10% rate of return on our investment without any risk, I'm all ears. If you can't do it without any risk, you're gambling, pure and simple.
Even if you could get a 6% interest rate, you'd still have to get something over 7% to make it worthwhile. I still don't know of any investment that doesn't include the element of risk.
And financing makes it much easier for someone like me to put the max amount in investments such as my Roth IRA... and I'm fairly confident the returns there will beat the interest on my loan. But of course there is always some risk involved.
#21
Lexus Champion
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I also financed my Lexus, through Lexus Financial. 6.9% for 60 months. I traded in my 98 GS400 and they gave me $14,500. I plan to pay the car off within a year so the high percent doesn't bother me. it my first car loan so i was surprised at the rate anyways. Only other credit builder was my Amex Gold card that my mom gave to me.
#23
#27
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ok, i'm in the stage of buying a new car...so far, e-loan and my credit union have given me 9-10% rate(freaking outrageous)...they say i have "OK" credit.....5 months ago, capital one gave me 6.25% and now, the decline...since i got approved at capital 1, i have not done anything to hurt my credit..no big purchase..no additional debt..nothing changes on my credit report...so weird.....i asked them why, they say just wait 'til the letter arrive and pull ur credit report.
so, what kind of rate u get and which bank? last time i check my credit score is 680....i guess this is consider "OK" by the lender.
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so, what kind of rate u get and which bank? last time i check my credit score is 680....i guess this is consider "OK" by the lender.
Try Pentagon Federal. Their current offer is 5.79% up to 72 months.
Last edited by warrionex; 04-14-07 at 06:30 PM.
#28
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I don't know what a FICA score is, but FICO scores range from 500 to 850.
The rates below are for 30 year mortgages, but illustrate the difference the FICO score can make when financing.
760-850 5.918% $1,783
700-759 6.140% $1,826
660-699 6.424% $1,881
620-659 7.234% $2,043
580-619 8.777% $2,366
500-579 9.670% $2,560
For my car, my credit union gave me a 0 down, 72 month loan at 6.3% (I had agreed to 6.6 when I applied, but the rate went down just before my car was delivered). The dealer, carsdirect, and some minimal web searching could not offer me better terms. My fico is 770.
The rates below are for 30 year mortgages, but illustrate the difference the FICO score can make when financing.
760-850 5.918% $1,783
700-759 6.140% $1,826
660-699 6.424% $1,881
620-659 7.234% $2,043
580-619 8.777% $2,366
500-579 9.670% $2,560
For my car, my credit union gave me a 0 down, 72 month loan at 6.3% (I had agreed to 6.6 when I applied, but the rate went down just before my car was delivered). The dealer, carsdirect, and some minimal web searching could not offer me better terms. My fico is 770.
#29
Lexus Diva
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Holy crap 9% is high. At 680 fico you should be Tier 2, which is decent. You can try the dealership. The credit score they get is sometimes different than what consumers get. Also, depending on why you have 680, they might be able to give you a tier "bump".
Don't lay down for the 9%, it's too high.
Good luck.
Don't lay down for the 9%, it's too high.
Good luck.