Can you buy luxury car with 50% down

[JustaGuy]

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

[carbk]

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

[coloradomrg]

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.

[JustaGuy]

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.

[relief13035]

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.

[carbk]

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.

[relief13035]

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

[magyar123]

Forget the Mercedes - try for a BMW

[carbk]

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.

[RedLight]

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. ;)

[Flowers]

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

[jribe]

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!

[HHM]

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.

[CindyLou]

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!

[IBroke]

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..