The value of buying Lexus quality

Here is another reason for you to buy a quality Lexus automobile! In November 2016 a USA Today article announced that car buyers today are more upside down in their financed autos than ever before.

Studies show nearly 32% of all vehicles offered as trade-ins at U.S. dealerships are in negative equity positions. This is data according according to The recent loosening of credit by lenders has encouraged car owners to trade in their vehicles sooner than they have in the past. Recently trades have carried negative equity from one car to the next

Too good to be true?

You should beware of brands that offer you rebates or deeps discounts of thousands of dollars. Huge rebates is a good indicator that a vehicle was over-priced to start with. Think about it, the only time you see deep discounts is when merchandise is distressed.

When rebates were first introduced to auto sales, there was an old saying that: “If a manufacture has to pay you so much to sell you the car new, how much are you going to have to pay someone to buy it used?”

In those earlier years I was selling Japanese cars. Domestic manufactures were pushing huge rebates and discounts to get people to buy American makes. The exception became the norm, even for imports.

A great alternative

One alternative to financing yourself into a guaranteed upside position is to have a large down payment. In the old days 20 to 30 percent down payment was expected of buyers by lenders. In addition to down payment, sales taxes and fees had to be paid at time of purchase. Over the years, that requirement changed in car buying just as it did with real estate transactions.

A great alternative for you is leasing your vehicles. Leasing is an alternative form of financing. With lease financing the taxes are not collected up front at the time of purchase. You do not have to come up with taxes in addition to your down payment or including them in your financing.

With leasing, your taxes are calculated and added to each payment. For example with an 8 percent sales tax rate, a $300 monthly payment becomes $324 with the taxes included. Therefore, as a buyer you only pay only for what you use. If the car is not kept past the lease term, the taxes are never collected on the residual value or unpaid balance. Even if you trade in early, taxes are not due on the unused portion of the car.

The value of leasing Lexus quality

Just as you will always comes out ahead by buying a quality product, you will also come out ahead in leasing quality over gimmicky finance “specials”

Change is in the air

Change is already in the air just since that USA Today article published two months ago . With the slight rise in interest rates, manufacturers are finding it more difficult to offer zero percent financing. Special offers in January 2017 are less attractive than they were in December 2016. Continue to beware of huge discounts and rebates, those are signs of overpriced products. Buy quality up front and you won’t have to go deep to pay somebody else down the road to buy your used car from you.