Quote:
Originally Posted by 2ndCamaro79
Thanks, its a 2013 new Lexus LX 570 with a MSRP of $90,787 with 6 miles. We bargained them down to $82,850.00. We have excellent credit (780) and would be putting down our paid for trade ($22,000) and maybe another $5000.
Link to car (Lexus dealers don't put new cars on site anymore 
http://www.autotrader.com/cars-for-s...gIndex=2&Log=0 |
Taking into account your excellent credit I think it’s safe to assume you will qualify for financing in the 2.5-3.5% range. This is a big loan tough I don’t know if you would be able to get anything lower than that unless you want to pay it off in 3 years or less. Here is how it will break down at 2.5% interest rate assuming you will be borrowing $64,000. 3 Year loan, monthly payment of $1,848, total interest over the course of the loan is $2,530. 4 Year loan, monthly payment of $1,403, total interest of $3,366. 5 Year loan, monthly payment of $1,137, total interest of $4,209. 6 Year loan, monthly payment of $959, total interest of $5,058.
Just from a quick glance around the interwebs this vehicle does seem to hold its value well but it is still very expensive. The gas mileage is 12-17 mpg and the insurance is likely to be significant, somewhere north of $120 even with an excellent driving record. (please check with your agent before making a decision to buy) Adding gas, (assume 15,000miles/year) insurance and monthly payment on a 6 year loan your cost per month is going to be something close to $1,400. If that, along with any other automobile expenses on other vehicles you own is less than 20% of your combined after tax take home income then I think it’s something you can handle. (that would be an after tax take home of nearly $7000/month) 20% is just a rule of thumb but I am sure you are a responsible adult and I am not trying to talk you out of anything just providing the facts for you. Hope this break down helps, let me know if anything is unclear.