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Buying a CD occurred to me but when I factored in the tax impact, I don't come out ahead. You see, I don't get a deduction for the interest paid at 2.9% yet I must pay fed and state tax on the 4% CD earnings. So, using a 38% tax rate (fed 31% plus NJ 7%), I really only earn approximately 2.5% (4% x 62% net of tax) on the CD after I pay the government on the interest earned.
Since you considered a long-term CD, I should be able to assume you can afford the car payments out of current earnings.
In 5 years, $30K at 2.5% after tax will earn almost $3990 in interest, whereas a $30K loan at 2.9% will incur ~$2267 in interest charges.
It seems that your calculations assume 0 interest on the $540 monthly payment. So, the loan declines in balance by $540 a month resulting in a lower overall interest cost as compared to the $30 grand earning compounded interest. But that comparison leaves out the interest earnings on $540 per month that would be earning interest in a CD if I didn't have to make the car payment. Also, not sure if there is a loan origination fee but I would think so.
In other words, if I buy the car outright and instead of paying $540 a month on the car loan, I simply increase the balance in a 5 year CD by $540 per month, I think the gap is closed somewhat depending on the rate of interest earned. Query if a bank allows me to increase a 5 yr CD on a monthly basis, perhaps not. I know you can reduce a CD in increments but not sure if you can add in increments. If not, I s/b able to buy 5 year CD's of around $500 each month but the interest is likely around 3% or so.
In any case, your advice is appreciated and I will give it further consideration particularly since interest rates are expected to rise and, as such, I may be able to earn more on a CD if I wait a few months before investing the $30 grand.
i wouldn't rush to dismiss the "DVD Audio" capability of the tl's audio system. "DVD Audio" produces outstanding fidelity from the appropriate medium. this is unique inside carland.
I am not finding this available in Mid-Atantic.
Price with Nav; 34,466 - out the door including tax, tags,etc. The only options included were a sunvisor and mud guards. Can any tell me if this price can be beat anywhere close to Washington DC?
Now on the Accord; out the door price was 24,600. with out the Nav system.
Comparision between the Acura & Accord:
The Acura was smoother, faster, and seemed more comfortable. (guess it should for 10k difference)
Like the editors here have said- the acura was slugish from take off- but within a few feet- it has plenty of take off power. The Accord, while very nice, was not quite as peppy. It was comfortable- but again slightly under the acura.
I think I may go for the Acura if I can buy one around 34k out the door. Iam 54 years old- I deserve it..(laugh) Any suggestions?
Anywhere I can get cheaper? Washington Dc area. Thanks
You have 30K in hand. Consider what happens if you suddenly need 10K for some reason - you can close the CD, forfeit the interest, and move on - or make the purchase on a credit card or get a personal loan at interest rates above 8%.
Put that 30K into the car, and you forfeit the opportunity to have the money work for you - and take a massive hit in net worth based upon the depreciation factor when they hand you the key.
My suggestions are to take a deal at $33,600 if it's a boni-fide offer and you like everything about the particular vehicle. I was pretty picky about color (anthracite/ebony) and not having a single extra test drive mile on my vehicle. Those constraints, along with the fact that only about 25% of the TL's are Nav and only about 20% of those are 6-speeds, meant that mine had to be factory ordered. DC area dealerships were willing to do that, if I was willing to wait 6+ weeks and pay MSRP.
My other benefit of buying (and registering) the car in PA was that I only paid sales tax on the difference between my trade and the new car (saving over $1,200 compared to DC) and PA doesn't require a front license plate, which makes the front end of the TL look a lot better, IMO. We do have a second home in PA, so the deal is legit.
As far as the Accord vs. TL comparison, I didn't drive the Accord. But the TL 6-speed with it's stiffer suspension, Brembo brakes and HPT tires give it a handling and performance advantage that was important to me.
OK...Ill take your advice and test drive both before we make a decision...
good story...LoL...your wife has some good one liners
We got our first kid in 1994 also....
Have fun in your rocket... !
When ordering a car starting a new year (2005), any chance that a buyer can still negotiate below MSRP?
Forget DVD-Audio, will 2005 include an MP3 player?
Is it ridiculous that a Navi system commands so much value? instead of paying an additional $2000, we're all paying $3000 - $3500 more. Might as well buy a plasma tv for your home. Also, at that price you can buy a decent aftermarket Alpine nav with dvd, xm, and mp3 capabilities and get it installed. Is Alpine really the best Navi system out there?
I do think there will eventually be more negotiating room on the 2005's, given reports that over 50% of future TL's will be made with Navigation. I'm not sure I saw the particular Alpine system you are referring to, but in general I am wholly unimpressed with the aftermarket nav systems. The ones I've seen have small screens and don't integrate well with the rest of the car's systems. Even the manager at my local Myer Emco store (high end audio / video in the DC area) recommended getting the TL's Nav system, claiming that nothing they sell would be able to match all the features without looking like a tacky add-on. He also claimed that the TL's audio system is the best in any car, period, and that DVD 5.1 audio will be the standard for the future. (Over my head, I'm still trying to get my old 8-tracks tapes copied to cassettes).
IMO, the TL Nav system is heads and shoulders above the best other systems I've seen. Lexus is a distant second and Mercedes & BMW are two or three rungs down. The full 8" screen on the TL is even a rung up from the MDX and RL systems. In addition, with the Nav system you also have voice activation of the audio and HVAC systems. Not that this is necessary, but it's a nice bonus.
Clearly, the TL's current technology is one of it's big features. However, as others who have followed my internal debates know, I was hesitant trading "gizmo technology" for pure, unadulterated driving dynamics (especially given that I was trading a no-nonsense Honda S2000, which I really liked). But after test driving a lot of alternatives, I concluded that in order to get substantially better driving dynamics in a car that could fit our family, I would have had to jump to a BMW 545i 6-speed at about $56,000 through European Delivery. That wouldn't have been a bad choice, I-drive and wacky ergonomics notwithstanding, but I never took the S2000 to the race track in 2.5 years, so I think the TL 6-speed was a reasonable and prudent compromise for our family sedan.
If the TL Nav system isn't worth to you the current premium you would have to pay in your local market, then get one without it or wait for the 2005. I believe the underlying car is a very good one, Nav or not.
This still seems a little high. What do you think? Appreciate any help.
Also regarding the TL vs the Accord posts earlier.If I cant get a good deal on a TL I will get the Accord. I dont think you can beat the value and it is still nice to drive.
Anyway, I was wondering why you walked out of Rosenthal. It's right around the corner from me, but I certainly would have no problem driving a distance if they were jerks or if there's a better deal.
Thanks
The dealership also sells Mercedes, and I believe they have one incoming AMG SL65 that is unspoken for. Just in case you have about $180k burning a hole in your pocket and think 600+ hp and 600+ ft-lbs is worth it!
Good Luck!
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Lee_W, Host
How can I get the feel of the car without test driving it. This is an expensive car, so I don't want to buy it without feeling its response.
Please help !
Unhappy today - I went and asked to confirm the timeline as I realized they were not finding one on a nearby lot. This is the kicker -- I was told that not only would I have to wait for direct from factory, but they "missed the 6-speed run" on the line, so it WOULD BE THREE MONTHS!
Should I tell them to stuff it and get my deposit back? I still want the car and they are my nearest dealer (Prestige Acura in Lawrenceville.) I feel a victim of "bait and switch". Hell, the '05's will be out around then. Will they have a higher price? Thanks for your comments and suggestions.
Right now, my guess is that the average price paid for a TL w/NAV is $33,500 which compares to about $36,500 for the RL. Given a 4 year/60K depretiation, KBB shows a 4 year old TL retails for $17,780 vs. an RL for $22,500. Of course, depreciation on an RL will be more rapid once the new model comes out in the fall. Perhaps the same may be said for the TL as its popularity diminishes in the next few years as competitors introduce new models (i.e. Infinity M35 and M45 come to mind).
To net it out, the $10,000 in saving in a 2004 RL didn't turn out to be that good of a long-term bargain. So, I choose the TL for the technology and more sporty ride.
I've been driving a stick shift for 8 years, so I think I'll be able to adjust to the quirks of each car. But the dealer doesn't even allow me to test drive the manual. Their excuse is that they don't have one available.
How did you get them to give you a test drive car ?
Thanks !
And money is an issue for almost everyone. I live in Arizona, which has only four Acura dealerships. I have read several posts on experiences with dealerships in California, New Jersey, the D.C. area, Houston, and other places, but rarely see any mention of Arizona dealerships. Does anyone have any comments or advice on the Acura stores in Phoenix (3 dealers) or Tucson (1 dealer)? Any good reports? Any warnings? And can anyone report on what prices are being paid (before TTL, doc fees, etc) for a 6 speed TL, either non-navi or with? Any comments would be appreciated!
Elk Grove in the Sacramento area was also dealing pretty well around the end of May, but OR was still $600 less...plus a great road trip home! Got an e-mail 6/7 from Oakland wanting to know what they could do to earn my business so perhaps they're willing to talk, too. And MV Acura said they would attempt to match my OR price, but they didn't have the exact color combo I wanted, and for this much moolah, who wants to settle?
Buying in OR = no OR sales tax, so you go to the CA DMV when you get home, register it and pay the tax in the county you live in. No other requirements here because all Acura's are 50-state vehicles. For any other make, you must be sure the emissions sticker on the engine says meets Federal AND California standards (explicitly!) or you can't bring it in.
Hope this helps.
Hope this helps.
Love the car... good luck
Try visiting Sussman Acura in Jenkintown, PA. About 40 miles West of the Lawrenceville/Princeton area and well worth the trip. Lease price was better than Davis Acura (my second choice) and we wound up leasing our 2004 TL from them 2 weeks ago. It was painless and the best experience I've ever had buying or leasing. Sale rep was excellent to deal with. Highly professional, knowledgeable, No BS. E-mail me and I'll give you his name. Good luck.