Can you buy luxury car with 50% down

Hi Everyone,
My signing bonus would cover 1/2 the price of a luxury mercedes (60,000)and my salary is a good 6 figure with incenitve bonuses . I already know car is a object of depreciation,however my question is 50% down enough to cover and be accepted, if so what rates am I looking at? I would consider leasing ...if it could give me a lesser downpayment but I heard leasing is very difficult to obtain mercedes/bmw if you have bk. Thanks for any help

Putting 50% down on any vehicle will improve your chances of getting approved for the loan since banks will take into consideration the amount financed vs. vehicle value. But it is also going to depend on your credit score. If you have a bk, I heard mercedes/bmw are not BK friendly so you can forget about getting financed thru them, they might make an exception though since you are putting 50% down. Your best bet is to go directly to the dealership and speak with a sales manager, don't deal with the salesmen cause sometimes they will just waste your time, a sales manager usually knows a lot more since he looks at peoples credit everyday and he knows what his banks will work with and what they won't accept. GL

Why buy new? Depreciation is a killer on large luxury cars. You are better off to look at an 08 with less than 20k miles and then put your 50% down. Why buy a $70k mercedes when the same car can be had for $35k to $50k?

Also... a sales manager is no more than a good salesman, and a finance manager is just a better salesman than a manager. The dealership has no control over the banks, even though they want you to think they do. Go to your bank and ask them or apply for a loan through a direct lender.

Thank you both for your responses. Depreciation is a big thing with luxury car,considering a 08 is a good idea. I am going to stop by my check union.

Please be smart and do some research on a 2008 Mercedes. I bought a (1) year old Benz and saved an enormous amount of money and still qualified for 4.9% interest through Mercedes Benz Financial. If it is certified pre-owned you can still get the great interest.

Please be smart and do some research on a 2008 Mercedes. I bought a (1) year old Benz and saved an enormous amount of money and still qualified for 4.9% interest through Mercedes Benz Financial. If it is certified pre-owned you can still get the great interest.

Wait what? You got a loan thru MB Financial after your Bk? Thats cool cause someone else was saying that they are not bk friendly.

No I got the loan from MB in April 2008 when I still had good credit and then filed in Oct. 2008

Forget the Mercedes - try for a BMW

Forget the Mercedes - try for a BMW

Yeah BMWs are sweet! I had an 06 X5 4.8is that was included in my bk :( Payment was $1500.

Hi Everyone,
I heard leasing is very difficult to obtain mercedes/bmw if you have bk. Thanks for any help

Leasing is almost impossible to do right now. Dealers just simply are not doing them as a lot of financing has dried up and depreciation is pretty bad.

Also, on a side note, you are using your signing bonus for the down payment, just make sure that you have enough to pay it back in case something comes up and you are laid off, etc. I have passed the luxury car phase with my Infiniti G35 from a while ago...piece of junk. ;)

Anyone been car shopping lately?
i am wondering if the dealers are working to move cars, and making financing a bit more flexible?

Anyone been car shopping lately?
i am wondering if the dealers are working to move cars, and making financing a bit more flexible?

i bought a new Honda in early January. I got 4.9%, and put $2,500 down. It seemed to be a pretty good deal. The car dealers are a little weird right now. Even though there's not a ton of people on the lots- they are still not willing to do a lot as far as going down on prices or better financing. The financing is actually the toughest part- because they have to shop different banks to get you a good rate. And most banks aren't giving out good rates easily. I would suggest narrowing down what kind of car (at least make) that you want and shop the local dealers online. We almost bought a honda at a local dealership (same city we live in) and the guy was really pressuring us. They wouldn't work on the price at all. Then we went home, went online found a better car at a dealer about 30 min away for 5k less!

Wow, talk about piss poor financial management.

When you start getting into the luxury car market, the "smart" buyer does not spend more on a car than 1% of their cash net worth. Meaning, a person buying a $60,000 car has $6,000,000 (million) in LIQUID CASH assets.

A payment buyer does not spend any more than 5% of their gross monthly payment on car ownership costs. And even then, the "smart" buyer purchases a care that is 3-4 years old so they are not the sucker that pays for the 40-50% depreciation that occurs in the first 3 years.

Putting 50% down on a car is dumb, you either pay cash outright, or you put about 20% down.

Take that $30,000 and you can buy a VERY nice new or barely used car!! It might not be a mercedes, but in my opnion, unless you just have extra money lying around (like in the neighborhood of 6mill as HHM said) then $60k for a car is just excessive when you can get one that is just as functional for half the price!

Yeah BMWs are sweet! I had an 06 X5 4.8is that was included in my bk :( Payment was $1500.

Ha, my mum had one, too. Sapphire Black. Goes into her BK as well..:blink:

Ha, my mum had one, too. Sapphire Black. Goes into her BK as well..:blink:

hey mine was sapphire black too! :D

THANK YOU HHM!

Spending $60,000 on a car is STUPID! Why in the world would you even post that on a bk website? How did you get into bk to start with? Would you invest $60k into a mutual fund that is guaranteed to depreciate 60% over the first 5 years? Let alone pay interest on borrowed money that will depreciate 60% over the first 5 years??? If you can put down $30k on a car you should either buy it outright, or you shouldn't have filed bk to begin with. Sorry to be so rude, but use your brain...and your money wisely.

I did think this has to be a joke, posting this question on a BK site. Perhaps it is.
HHM, why all cash or 20% cash? Why not 50% cash if you can afford it?
Thanks.

$60K on a car!!!!!!!!

Good grief, I am having second thoughts, third thoughts, fourth thoughts about paying $18K for a used car! (And I used to get a new car every three years in the good old days. My last new car has last for 13 years and is about to bite the dust, though.)

I did think this has to be a joke, posting this question on a BK site. Perhaps it is.
HHM, why all cash or 20% cash? Why not 50% cash if you can afford it?
Thanks.

Because the money can be put to better use. Cars are "depreciating" assets.

You pay cash, out right, to avoid interest (thus, you reduce your total cost of ownership). You put 20% down if your income can support the payment to put your other money to better use.

Ty HHM. OK so this is either a joke or the opening statement below is the least sensitive statement I've ever seen posted to a forum to help peeps in BK & dire fincl straits. IMHO.
"Hi Everyone,
My signing bonus would cover 1/2 the price of a luxury mercedes (60,000)and my salary is a good 6 figure with incenitve bonuses ."
Bully for you.

The guy just wanted to know if he could get a loan with 50% down. His chances of getting laid with a 60K Mercedes goes way up so I say it's worth it!!!

Logan

Spending money like you're in Congress doesn't get you laid, it gets you laid into a fresh bk....looks like he/she has already been there! Put some effort into learning to manage money.

Spending money like you're in Congress doesn't get you laid, it gets you laid into a fresh bk....looks like he/she has already been there! Put some effort into learning to manage money.



Maybe you should mind your own business since you have no clue how this guy manages his money.

Maybe you should mind your own business since you have no clue how this guy manages his money.

Maybe your right.....Or MAYBE, since justaguy asked for OPINIONS and I just happened to of opined, it at least helped somebody decide this is not a smart thing to do.

but, I did chime in and you are right, I have no idea what the original poster's net worth is or how he manages his money.....but posting on a bankruptcy forum, asking for help, after a recent bankruptcy, meaning you gave up everything, I have pretty friggin good idea!!! And this doesn't make sense.....again, after a bankruptcy.

Don't know why you felt the need to defend, but advice is simply that, take it or leave it....I will always refund any money paid for my advice if you are not completely satisfied..:D

The guy just wanted to know if he could get a loan with 50% down. His chances of getting laid with a 60K Mercedes goes way up so I say it's worth it!!!

Logan

I guess if he needs a car to get "laid" he's got bigger problems...

Maybe your right.....Or MAYBE, since justaguy asked for OPINIONS and I just happened to of opined, it at least helped somebody decide this is not a smart thing to do.

but, I did chime in and you are right, I have no idea what the original poster's net worth is or how he manages his money.....but posting on a bankruptcy forum, asking for help, after a recent bankruptcy, meaning you gave up everything, I have pretty friggin good idea!!! And this doesn't make sense.....again, after a bankruptcy.

Don't know why you felt the need to defend, but advice is simply that, take it or leave it....I will always refund any money paid for my advice if you are not completely satisfied..:D

He asked our opinion if he could get a loan for this car since he had a recent BK so why isn't that appropriate in the BK Forum?

He asked our opinion if he could get a loan for this car since he had a recent BK so why isn't that appropriate in the BK Forum?

Maybe I should have said, "yes you can get a loan, but its a stupid thing to do." Are you satisfied?

Maybe you should offer to co-sign the loan if you are so intent on "helping".

The smart thing to do would be buy a $30,000 car with cash and have no payments...that's all I'm saying...

Been there - done that!

Read my lips "YOU DON'T NEED A $60K CAR".........It's just stuff.

This BK process can sure humble a person in a hurry. Buy a MUCH cheaper vehicle cash.

Maybe I should have said, "yes you can get a loan, but its a stupid thing to do." Are you satisfied?

Maybe you should offer to co-sign the loan if you are so intent on "helping".

The smart thing to do would be buy a $30,000 car with cash and have no payments...that's all I'm saying...

I guess it's all relative. I make 150K a year and could buy a 60K car if I wanted. If I had a 30K bonus it would be a 30K loan that I could EASILY afford and STILL max out my 401K and put money in the bank. Guess what? I didn't get a 30K bonus and I'm looking at cars in the 35K range so this guy is ahead of me so I MUST be very BAD at making financial decisions.

There's nothing wrong with payments especially if you can write off the loan and you can invest your money elsewhere to make more money.

Not everyone has lost money in their investments. Luckily my father taught me well and my investments are down 5% over the last year. Not bad for a poor money manager who's about to buy a 35K car with 0 down.

Logan

I guess it's all relative. I make 150K a year and could buy a 60K car if I wanted. If I had a 30K bonus it would be a 30K loan that I could EASILY afford and STILL max out my 401K and put money in the bank. Guess what? I didn't get a 30K bonus and I'm looking at cars in the 35K range so this guy is ahead of me so I MUST be very BAD at making financial decisions.

There's nothing wrong with payments especially if you can write off the loan and you can invest your money elsewhere to make more money.

Not everyone has lost money in their investments. Luckily my father taught me well and my investments are down 5% over the last year. Not bad for a poor money manager who's about to buy a 35K car with 0 down.

Logan

I can appreciate what you are saying, I just feel differently. We are planning to purchase a vehicle this fall, after the new models come out and will pay cash for a $20-$25k used Sequoia or Tahoe. I earn a little bit of change myself so its not a stretch for me to do so with a little planning. I just don't want to make payments if I don't have to. You see, I just don't think that affording the payment is the same thing as affording the car. I invest in a 401k, I have a roth, and am making extra payments to pay down the remaining $200k on my mortgage. Everyone has different philosophies on managing money, but I will never advocate taking on debt if you don't absolutely have to. I have been through bankruptcy after my business failed and it sucked...royally. Had I not taken out the business loans I did, I could have weathered the storm and made it through without bankruptcy. I will be the first to admit I was a little greedy.

I once thought debt was a tool. Now I think debt is a terrible burden...Just one man's opinion who has taken on $0 debt in over 3 years, while earning over $125k a year....If you have the money to do what you want, you don't need my advice. I wish you the best of luck in your finances.

This is actually a dead post.

I understand that those making "more" money can live a lifestyle above those making $60,000 a year. The real question is at what point can you be frivolous; i.e. what exactly is the definition of affordable? As I mentioned in other posts...for a 60K car, that should be no more than 1% of a persons net-liquid-worth, or a car payment should be no more than 5-7% of a persons gross monthly income.