Any Reason Not to Consider a CPO Lexus GX460 If a Good TE4R Deal Can't Be Made?

[OhThatGuy]

I've already involved you all in my personal car buying saga so here's the latest...

The situation just got way more interesting. I drove a great certified 2010 GX460 today. It was way more sumptuous and packed with techno extras than the trail edition (as anybody would expect in the price point-not knocking the trail). You guys are really going to want to kill me for this...

The problem is, the thing is too swanky, too soft, too mushy for what I really need or even want. I got out of it thinking I wanted something squarely in the middle between the trail and the uber lux GX. I certainly wasn't in the mindset that I wanted to pay for any of it.

Keep in mind that to get a similar great deal to the ones some folks around here got on their trail editions, I would need to get "out the door" after negative equity on my trade some place around $42K. NONE of the dealers in my state have come much south of $45K out the door on a new trail with dynamic suspension and nav.

Back to the GX deal...after the test drive, they put a crazy deal sheet in front of me that reflected all of the fees and the low value for my trade (vs payoff) and the number was way up around $56K out the door (LOL). So I politely told them that I wasn't so jazzed about the car that if they got to my max of $45K out the door with no money down, that I'd feel compelled to jump on it then and there. I wasn't playing hardball, I was being totally honest.

So the salesman kept going back and forth with them as I sat in the room and remained super honest and appreciative of all of their efforts to improve the deal. Well, after about an hour of them ping ponging back and forth, they came down $11,000 off of the initial offer and got me an out the door price of $45,000 with nothing down using my credit union for the deal. The price on their car dipped a bunch and they gave me $3K more on my trade because (at 7PM at night) they 'suddenly' found a buyer who would give them more on my trade (LOL).

So it is a crazy good deal (around $43K for their GX with all fees, tag, title, etc. INCLUDED before tax and my trade / payoff get factored in). That is a pretty crazy deal, right? Only problem is, I'm honestly not that jazzed about the vehicle. Here's why...

I'm driving a fantastic car with a retail value only around $2K shy of this GX. There is only $38.4K of debt associated with that asset. The moment I sign off on the GX, I have $45K in debt associated with the asset only worth $2K more. That may be the wrong way to view it but I'm still struggling with it because it doesn't bring $5K more worth of value to me.

Any way you add it up, they just blew away all of the deals from the Toyota dealers who wouldn't budge much on even used old stock 2012 trail editions.

 

[bigslimdog]

The problem is, the thing is too swanky, too soft, too mushy for what I really need or even want. I got out of it thinking I wanted something squarely in the middle between the trail and the uber lux GX. I certainly wasn't in the mindset that I wanted to pay for any of it.

So they made you a great offer on a truck you don't even want anymore? You answered your own question there.

Sounds like a limited T4R would be a good vehicle "in the middle" between the TE and GX. Or better yet just keep your current vehicle that you stated is a "fantastic car."

BTW trying to roll over negative equity and finance tires doesn't equal "doing well financially" and "living modestly."

 

[OhThatGuy]

BTW trying to roll over negative equity and finance tires doesn't equal "doing well financially" and "living modestly."

I don't have negative equity except on a trade basis, which I've explained. I wasn't talking about financing any more than 4 tires with the purchase, which pretty much is the same amount of tires that everybody else finances when they buy a car. Under that scenario, the dealer was throwing it into the deal in place of the regular tires. Not to mention that the auto loan rates are crazy low at the moment. You guys act like I was taking out a high interest loan at Tire Rack or something.

I am thankful to be employed in the current times and extremely glad to be at the upper end of household incomes. When you live in a house the is nice, clean and meets all of your needs but costs $40K less than your annual income, you're probably "living modestly" at least compared to most Americans.

Thanks for the feedback.

 

[weeeee]

I am thankful to be employed in the current times and extremely glad to be at the upper end of household incomes.

Cool story bro. Enjoy your new Lexus and don't let the door hit you on the way out :lol:

 

[waltuo]

Cool story bro. Enjoy your new Lexus and don't let the door hit you on the way out :lol:

This.
And if your house that you just bought is worth less than your annual income then either you live in a shanty or you should be making six figures. Maybe it's not the latter seeing as you complain about $45k.

 

[OhThatGuy]

This.
And if your house that you just bought is worth less than your annual income then either you live in a shanty or you should be making six figures. Maybe it's not the latter seeing as you complain about $45k.

Ha ha. I do very well but I'm not rich by any stretch so $45k still means enough to me to get something I really like for it when I spend that much. Plus the next car I get will be one I intend to live with for 100,000+ miles. I only explained my financial situation in more detail because a couple of people have acted like trying to get a tire upgrade thrown into the deal or having a trade in I owe money on equated to being in financial ruin.

 

[KCcarguy]

I have a headache.....

 

[Stifler]

Don't let some of these haters fool you. The 4runner is a awesome car but a Lexus go is leagues ahead of it.

No hate my wife owns a Lexus I agree it is a great woman's car!

 

[Jayhawk5G]

If I may ask, what is your current vehicle?

This forum has been one of the most sink or swim that I have been on as far as automotive forums go. Don't listen to all the hate, but also don't expect people to give you a shine job either. I gave my honest opinion about out the door price and financing the lift/tires. I will give my honest opinion about this as well.

If the GX doesn't make you happy, don't buy it. IF it does, then ask yourself if you keep your vehicles forever or if you like to trade them in every few years. If you keep them, then spending $5k for a vehicle worth $2k more than your current doesn't matter because of the length of time you will have the vehicle and who wants to drive something they don't love for that long? If you know you trade then maybe you need to ride this out until the equity is better and then trade for something then?

 

[Stifler]

Jayhawk he said he bought the GX

 

[Greg_Canada]

This.
And if your house that you just bought is worth less than your annual income then either you live in a shanty or you should be making six figures. Maybe it's not the latter seeing as you complain about $45k.

Or he lives out in the country somewhere... a house less than 500k here is a complete fixer-upper... i'd love to make that a year! LOL

 

[gamerc]

I have NEVER been a fan of 100% financing on a vehicle. I feel like a fool asking for something expensive without anything to put down on it. The truth is that the GX isn't worth 2k more. It just isn't. It will depreciate and depreciate while you pay out the 45k+ interest. And when the 45k+ interest becomes 47-50k in total payments, you have paid 50k for a car that depreciated EVEN more in the time it takes you to pay off the 50k.

Rough numbers on a 45k loan are:
2% = 788.75/mo for 60 mos = $47325 (+2300 over 5% of the original loan)
3% = 808.59/mo for 60 mos = $48515 (+3500 almost 8% of the original loan)
3% = 683.72/mo for 72 mos = $49227 (+4227 roughly 10% of the original loan)

Whether it is buying cars or buying houses (I've done plenty of both), the first thing you want to look at is the truth in lending statement. It tells you what the total of the payments over the course of the loan will be. I wish I was fortunate enough to have my house paid off, but I don't. I live in a nice house in a nice area, and I have a wonderful family to share it with. I am motivated to pay off the loan long before it matures however, because I am not a fan of owing money. I also do not want to pay out more than I have to.

Whatever your decision is (sounds like you got a GX), congrats and good luck. Best of luck to you in the future. Try to pay it off sooner and pay less later. You will have a lot more wealth when you don't owe so much.

There was a similar thread recently where someone paid a bit more than he had to and didn't mind financing it all because it was a dream car. Well, don't let lust get in the way of a good decision. It never ends well and you always pay for it in the end.

 

[Jayhawk5G]

Jayhawk he said he bought the GX

Edit: I re-read his last post and while he says the deal on GX is blowing away any of the deals he could get on a Trail, I don't see anywhere that OP said they bought the GX?

 

[Stifler]

Edit: I re-read his last post and while he says the deal on GX is blowing away any of the deals he could get on a Trail, I don't see anywhere that OP said they bought the GX?

You are correct Sir... I misread after filtering through all the other BS

 

[Jayhawk5G]

You are correct Sir... I misread after filtering through all the other BS

I had to edit my post because my first post was apologizing for the exact same thing getting caught up in all the posts.

I still think a bad investment can be a good one if the end result makes you more happy, but if the OP doesn't love the GX then it's a bad move. The older I get the more I go over my vehicle purchases with a fine tooth comb.