Buying a New Used Lexus GS300
After my last accident I needed a new car, and I finally got around to buying one....my new (used) black 1999 Lexus GS 300.WHY A LEXUS?
I was thinking of buying another Toyota Camry because it was such a great car, but I decided to step it up a notch and go with a Lexus.....same great quality with a little more luxury. The rational thing to do was buy a relatively cheap new car for the same price, but many times the rational thing isn't the most fun! I've saved up a bit of money over the years, and I was prepared to drop around $16k on a car.....which doesn't exactly afford the nicest of new car.
I decided I wanted a used 1998+ Lexus GS 300 with under 100,000 miles. Research showed me this is a very long-lasting and reliable car....not to mention Lexus has been the consistently rated the #1 most reliable car for years.
On a very superficial level, your car says something about you. I wanted to go for the young professional look (not sure how professional I am) but I didn't want to spend $45,000+ on a BMW or new Lexus.
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SEARCHING FOR THE PERFECT CAR:
Perusing Craigslist, AutoTrader and Yahoo Autos for a few weeks made it clear that all the good deals on private party Lexus' in Texas were in Dallas which is about 3 hours away from Austin.
I passed on a few deals I shouldn't have because they were in Dallas, but finally I found a good one and rented a car to Dallas. Patience was key here. I was getting a little hasty at first because I just wanted to get this whole car thing over with. I'm glad I waited a little bit longer for another good deal to come along.
RENTING CAR, WITHDRAWING CASH:
I got a one-way airport-t0-airport rental car from Austin to Dallas, so I could ditch the car if the deal went through and had to drive the Lexus back from Dallas. Since I'm under 25 there was a fee, there was also a fee for one-way drop off, and I also got upgraded insurance (juuuuust in case) which brought my total to $113 for the entire rental car, plus a $30 tank of gas in the end.
The night before the car rental I went to my local Bank of America and withdrew $15,000 in cash. That $15,000 involved a lot of hard work and savings over the years, yet it fit snuggly inside two small envelopes. I just HAD to play around with it!
$15,000.....Not as impressive looking as it sounds.
Money smells funny.
I couldn't pass up the opportunity to do this!
Years of saving and hard work = Half inch stack of paper.
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BUYING THE CAR
I finally met up with the guy in Dallas after visiting several Lexus dealerships and viewing some other private party cars around town. Did a quick test drive, went through my check-list of things to look for and decided to seal the deal. In the end it came to $15,000 in cash even.
Sitting pretty on the driveway. 1999 Lexus GS 300 with 65K miles.
BEING FORCED TO GET A LOAN
I wanted to pay for this car in cash, and I did.....however I DON'T want to miss this opportunity to put a loan on my credit report. Therefore I've already arranged to have a $10,000 loan taken on the car from a Federal Credit Union. All I have to do is transfer the car title to the credit union for collateral, they write me a $10,000 check and I make monthly payments which looks good on my credit.
I wish the whole credit system worked in favor of people who pay off their cars in cash, otherwise I would never take this step.
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INSURANCE
I've got GEICO insurance which was a pretty pleasant experience, and since I was in two wrecks in the last 3 years (My fault or not), my insurance for the Lexus is $1,080 for 6 months....yikes. The original quote they gave me was for $650 for 6 months....until that pesky little driving record was pulled up.
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Labels: 1999 lexus gs300, Transportation, used car
posted by Neville @ 1:03 AM
32 comments
32 Comments:
Also, slight grammar error:
"Patients was key here."
Should be patience :)
Tri Megatech Technology Solutions
I was excited for you that you paid cash, but then I was disappointed that you got a loan to improve your credit score. Was that move really to improve the score, or did you just want the $10k close by? Who cares what your credit score is when you pay for stuff with cash???
I love cars (see my link) but I hate putting that much hard cash on a depreciating asset.
the good thing about the car is the relatively low mileage... good luck...
We have insurance for two drivers, two cars (one brand new & expensive) insured in CA and we are paying less then twelve hundred a year. The only exception that we are over twenty five.
Don't you mean you'll get to cross the car purchase off your "anti-to-do" list?
Most reliable cars on the road, so great choice!
All the girlies will want you more !!! LOL
Nice taste Nev. I love Lexus cars.
Congrats on the Young Professional look :)
put 300,000+ miles
on the car.
_____________________
I have 300,000+ miles
on my '88 Accord.
_____________________
How did I do it, by
not listening to
the "mechanics."
____________________
And also, financially
not able to buy a
new or used car.
_____________________
But, all in all,
forced me to learn
all kinds of cheating
tactics used by
car mechanics.
#1 tactic:
scare tactic and
out and out lying
by the car mechanic.
Worst offender:
car dealer auto repair departments, followed by "independent"
one or two car bay repair
shops.
__________________________
If the car moves and doesn't leak anything, then
don't go to the car
mechanic, unless it is
for the basic "oil change."
Abide by this
rule like your car life
depended on it !!!!!!!
Then you should be OK.
_____________________
SAT. FEB. 17, 2007/
2/17/ 2007. SATURDAY.
_________________________
You've increased your Utilization to 100% on the loan and you've now more inquiries. Opening a credit card account and keeping it at 0% utilization would have done the same thing without the cost.
Nice car and good deal as Anonymous said...your posts are interesting with hilarious pics. Some helpful information on...
Five Easy Steps to Owning Your Dream Car
take the difference between what your car is worth in a year and what you paid for it and add that the interest you paid the credit union and you'll tally up the significant financial mistake you made.
you might be good at coming up with business ideas, but you sure dont seem to be very experienced when it comes to actually managing the cash.
you're young and will learn.
$10k loan is fine to build credit. especially if you got the loan for lower than what you could earn in a more secure investment. car loans are different than CC as far as usage, since you dont' have a credit limit on a loan.
I'd check with Geico and/or your FCU about discounts for being a FCU member. Normally, Geico will provide discounts for FCU members. just think, another year and the insurance rates should decrease. speaking of which, you alluded to driving record. you might opt to take an online (or go to blockbuster and rent) driver safety course. it is really boring, but it will get you discount on your insurance in texas. also, texas also allows you to take a driver safety course if you get like a speeding ticket, which you can avoid having the ticket listed on your driving record as well as not having to pay the fine. The only caveat is that if you already took the course, then you wouldn't be eligible since you'd have to take the course afterwards.
1) As you stated it will build credit. Credit cards will do the same thing if you pay them regularly. But a larger purchase like a car will help your credit score.
2) Vehicle reliability. Some newer cars are more reliable than older cars. If you do research (like you did) getting a car that runs consistently without failure and gets good fuel efficiency will save you money in the long run. My father always told me that if car repairs (and other maintenance expenses) start to add up to more than a car payment, get a new car.
3) Safety. Newer cars are safer than older cars. Doing proper research on Consumer Reports can help steer you to a car that will protect you from the next uninsured inconsiderate person that hits you.
4) Some cars depreciate less than others. The two cars I purchased new I made sure had a very slight depreciation curve. That way if I had to sell them I wouldn't owe that much left over on the loan.
I have owned 3 cars in my life, 2 of those purchased new. I got a new Honda with a loan of 3% APR and a new BMW with a loan of 5%. I still own the Honda years after it was paid off (190K+) and it runs great. Why did it get it? Reliability. Same thing with the BMW. I got it because my wife and I needed a second car and it was reliable, had the safety features we liked, and got 25-30 mpg.
Do I regret the loans? No. The APR was quite low compared to the average auto loan and they both helped to build my credit. Could I have paid more on each car to have less of a loan? Maybe. But instead I invested that extra money and made a 16-24% return on my investment.
If done responsibility and with a little foresight, car loans are not a bad choice. It's when people decide they want the most they can afford (without thinking if they really need all the extras) and then get a loan with a very high APR that they get into trouble.
One more thing – When buying a used car always have it checked out by a third party mechanic before buying it. That way you can be certain you are getting a fair deal.
A few years ago, when Mercedes began offering a Diesel to the North American market again, I bought one (and sadly, "new" was the only game in town). The upshot? I can get 37mpg on the freeway in a car that's safe as it gets, but it's got lots of issues, and I don't dare own it out of warranty.
The beginnings of my rant on this car are here:
http://jadedconsumer.blogspot.com/2008/06/all-that-is-gold-does-not-glitter-why-i.html
So while I was investigating the alternatives, I met several people who have been thrilled to death with their experiences in Lexus models bought through pre-owned programs.
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