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This is such a great forum...I've learned so much from reading through the backlog. I look forward to helping out people in future here, once I get my car!

Here's my deal. I've been poor my whole adult life, but after a decade of 15 hour work days 7 days per week in an agonizing slog I never thought would pay off...it paid off. I'm not going beserk spending money, but before I throw most of it into index funds, I do want to do something really nice for myself. I've been driving a 1991 subcompact with lots of problems for the past 12 years (bought it for $4000), but am about to buy a Lexus SC430 as my single bit of reckless irresponsibility!

I see how excited you all are about your convertibles. Believe me....I'm going to be a lot more excited. I hope you can be excited for me! And...answer a few little questions (mostly about this car, but also about expensive cars, generally - something I know nothing about!).


1. I have yet to find a real good way to select a color. The swatches online are hard to go from, and dealers don't usually have a full stock of colors. Can anyone suggest a resource?

2. I like the idea of runflat tires so there's more trunk space, but I also like quiet ride (I"m in NYC, so I'll have top down most of the year) and good handling (though your idea of bad handling and mine are likely very different!). I'm figuring not to get runflats. Question: runflat or not, what's the deal with icy/snowy handling? Do I need two sets of tires?

3. are wheel locks mandatory in NYC? I don't expect to park on street much, but.....

4. The depreciation is sooooo shallow on this car that I can't reconcile the idea of buying used. Depreciation in this case actually favors the original buyer! That said, the idea of driving $60K worth of metal around sort of panics me. But I don't want a used 2002 (before they got the body right), and a 2003 will cost me 40K anyway...plus the uncertainty factor. I'm figuring if I lay out money for a new car, I can sell in a couple years and have paid $8K/year for the enjoyment...not bad. Does this make sense?

5. a banker told me not to pay cash...that I should do a loan or lease and borrow against my brokerage margin account to make payments, because that borrowing is at low rate and tax deductible. Is he insane or does this make sense? My head hurts!

6. I intend to keep my crap ancient city car, and park it on the street for in-city errands, and keep the Lexus garaged for longer trips, weekends, dates, etc. But any tips for owning one of these things in a big city?

7. the lack of plug for an MP3 player on the stereo really bums me out. I thought paying this amount of $$ is supposed to insulate one from these niggling problems!

Generally, it feels kind of weird to be leapfrogging scads of cars I never in my life thought I could afford....to buy the very best. It's going to take me time to get used to this.....


thanks, all!

PAUL

KU Lex

Hello. I personally cannot answer your questions as my Lexus is not convertable, I have never used run flat tires, I dont live in a big city, and my Lexus is my only car. But what I can tell you is congratulations on your desicion to go Lexus. You will not me dissapointed. I had to save for mine to and it IS worth it. I went the inexpensive but luxurious old LS, but they are all winners. I understand the exitement. It will take years to wear off. Welcome to the forum.

rominl

iTrader: (4)

congrats on your upcoming purchase, just be patient, i am sure you will find something you like

1) well lexus.com is hard to look at for sure, color is very different. going to dealership is probably the best route, but if you can't find one color, try to search on autotrader and such to see if tehre are used cars with pictures

2) i don't know much about icy environment, but personally i wouldn't really count on runflats tires to do anything. just like all season tires, i dont' think they are good for any season

3) again i am not in nyc so i can't say, but for 50 bucks, why not

4) well, you are right imho. the sc430 depreciation is sooo "good" (to the seller), that personally i think it makes sense to get new ones if you can afford it. that's partially when we got ours new i guess (another would be my wife would never take one used)

5) you will have to do all the math and see what's beneficial. if you can take an equilty loan that you can write off the tax it might be a good thing, giving you more cash flow. but of corse it depends on rates and such. accoutant time (where's my wife?)

6) well my sc430 it doesn't really go anywhere that i consider "high risk" as in road conditions, slopes, areas, parking, etc... so you get the idea

7) hahaha, you wanna wait for the next new design sc for the mp3 player?

sc430blue

Welcome to CL! Check out the NELOC section of this forum. Someone there may be able to let you drive an sc without runflats. As far as colors....you gotta go to the dealers and check them out. Regarding financing, I can understand the tax break but you might want to take into consideration if you are going to modify or not.
Good luck!

bt430

No way you are going to run that car in the NE winter without some kind of winter tire, I put on Dunlop Sport winters on mine and it was great for the sloppy days in the DC area.

SC43006

Good Luck On The New Car. Have Fun.

GSXOTIC

iTrader: (6)

Paul,

I am not sure if the banker ever take a look at your tax return before making that statement. If no, he is an idiot of making such tax oriented remark. Yes, your margin interest is considered "investment interest expense" and, therefore, deductible on your tax return. HOWEVER, your "investment interest expense" is deductible to the extend that you have investment income. BTW your net capital gain from the disposition of investment property is not considered investment income unless you make a valid federal election of treating your stock transactions as investment income (but yet on the elected amount you will be subject to ordinary income rate instead of capital gain tax rate - assuming your ordinary income rate is high).

I can go on for another 10 minutes but I am not going to do that. I recommend you ask your tax advisor or CPA before you are EVEN considering doing this. A common way around is like Henry said. Just take a equity against your qualifying residence (again, assuming your total acquistion indebtedness plus the equity is within 1.1 million.) and buy the car with it.

This is why CPA is valueable, but trust me, CPA profession is the least appreciated professional out there.....

oh damn. forgot to attach the disclaimer, here you go:

THIS COMMUNICATION IS NOT INTENDED TO AND DOES NOT COMPLY WITH THE U.S. TREASURY DEPARTMENT'S TECHNICAL REQUIREMENTS FOR A FORMAL LEGAL OPINION. CONSEQUENTLY, IT CANNOT BE USED BY A TAXPAYER TO AVOID ANY PENALTY THAT MIGHT BE IMPOSED ON A TAXPAYER. NOTHING IN THIS COMMUNICATION MAY BE USED OR REFERRED TO IN PROMOTING, MARKETING, OR RECOMMENDING A PARTNERSHIP OR OTHER ENTITY, INVESTMENT PLAN OR ARRANGEMENT TO ANY PERSON.

D2-AUTOSPORT

I say go for it man, you have worked hard. Just ensure you are properly guided in the realm of deductions, especially on big fancy new cars!!

When you are ready to mod (trust me, hang out here long enough and you will wan to mod) we can help. We can meet in NYC and you can see some of the cars we have done.

Good luck!

-Derrick

downscale

Thanks, all. Much appreciated!

Obviously, if anyone has other suggestions, I'd love to hear it!

LexLaw

First off congrats on your hard work and desire to get an SC430. Man you deserve it. Trust me the Coupe Life is wonderful. The women will be loving you. Okay okay back to the questions at hand....

I primarily reside in NYC so I definietely know whats up and understand all of your concerns.

1. If you want to get an idea of what colors/combos look best go to ebay motors as they offer various sellers/dealers with an abundance of pics and angles. I used to go there everyday prior to me buying my INDIGO BLUE PEARL
click http://motors.listings.ebay.com/Lexu...istingItemList

2. I got mine after snow but my friend never changed his all seasons (non-run flat) and I've never heard him complain. Just don't drive recklessly. In other words keep the hooptie.

3. The wheel locks aren't really necessary. I look at it like The Club. If someone really wants it, it's not that hard to get around. Also I don't see a high demand for our ugly stock manhole rims. Now if they were chrome '06 rims, you might wanna be on the lookout for me.

4.& 5. I'll leave for the other guys.

6. the one tip I'd give you is to definitely garage it. Even if you live in a "decent" or "low crime" area keep it off the street. People like to play bumping car when parking. I know you know exactly what I'm talking about.

7. I know, I know. I feel you man. I'm still having issues with my Griffin iPod Smart tape but trust me the Mark Levinson Owns all competition. Whether it's Billy Joel, Creed, Cam'ron or William Hung, okay I'm reaching, they will also sound good.

Oh yeah Welcome to CL and good luck on your SC search!! I remember those days. Just hurrry up you only got a few more months to really drop that top without people looking you at you like you're the Naked Cowboy.

downscale

Lexlaw, yeah, I'm hurrying....problem is I need to find garage space, and I'm not in a neighborhood known for that. Last two weeks have been convertible weather, too. Sigh. But even if I miss prime convertible weather, I really REALLY dig that the hard top makes this a dynamite winter car, too (not that I'm gonna be slogging it through slush very much, but you know what I mean!). And with global warming, there may be more winter poptop opps (damn, I'm zingy).

Re: the sound system, it's funny. In all my crap cars before, sound's mattered a lot. I've installed good-value sound systems...nothing fancy, but the very best I could afford. But I haven't even thought about sound in this Lexus, I'm all geared up about the convertible aspect. I'm guessing I'll pop in a CD and be blown away totally as, like, frosting. That'll be a good moment.

I'll hop over to ebay for a look at colors. Thanks!

rominl

iTrader: (4)

mark is definitely someone you have to listen to when it comes to tax return, investment, etc... aside from the fact that we all have no respect for him (hey he said that himself ), he's a great helpful guy

to me, i guess i am very simple. if i have a lot of cash and i don't need cash flow (or enough for cash flow), i will just pay cash. but if i want some more cash flow being about to take equity loan and write off the interest that would help