Financing a vehicle can be a good option for owners who don’t want to pay upfront. But one man reveals why he decided to forgo financing and buy his Lexus ES350 in cash instead.
In a video with over 110,000 views, TikToker Joseph Rodriguez (@jrodsellscars) explains why he decided to purchase an older Lexus for $8,400 instead of financing a newer model.
Why did he buy the Lexus in cash?
“The original plan was to finance a 2022 or 2023 Lexus ES350. But after giving it a lot of thought, going the cash route made more sense for me,” he says.
He breaks down the details of the financed Lexus option: $5,000 down, $550 monthly car payment, and $250 for insurance.
“That would have been $800 a month total. Instead, I’m going to take that same $800 and keep throwing it at my house,” he explains. “This is going to give me the opportunity to pay off my house way faster.”
He notes that the ES350 hasn’t changed much from older models, which was one reason he decided to buy an older model in cash.
Was buying in cash a good decision?
Despite his initial excitement, Rodriguez shares that his new car failed inspection because the engine stopped turning on just a few days later. He says he replaced the battery himself and hasn’t shared any further updates on the inspection.
However, Rodriguez doesn’t appear to regret his decision. Shortly after posting about his engine troubles, Rodriguez shares another video on the “pros and cons” of buying a cash car.
“You don’t need full-coverage insurance. All you need is liability,” he says.
He also claims that parts for cash cars are more readily available, as the more affordable vehicles are typically older models.
Most attractively, cash cars are also interest-free, which he says is a major perk.
“When people finance cars at seven to eight percent, over the loan, that total is like $5000 to $6000,” he says. “That’s literally a cash car in itself.”
However, there are a few cons to buying a cash car. Rodriguez cites reliability, lack of safety features, and outdated appearances as downsides.
What do car owners think of his purchase?
In the comments, car owners discuss his decision to forgo a newer model for a Lexus paid in cash.
“Cash cars are a WAYYY bigger flex than any new car, supercar, etc. having no car payment and cheaper insurance is the move,” one writes.
“Got a paid off car myself. Having no monthly literally is the reason I was able to travel to different countries. I’d rather experience that than be in debt of something that’s a liability,” another says.
“You made the right move. No car payment is a flex. The economy is in shambles,” a third adds.
Other Lexus ES350 drivers tell Rodriguez he made a good decision.
“Lexus is so good. I have a 2005 ES330, and I definitely want to upgrade it to the one you just got,” a viewer says.
“I’m still driving my 2010 Lexus ES350. I love it!!” another shares.
“Still rolling in my 2000 es300 with less than 100k miles. I like having play money, new car can come later,” a third writes.
@jrodsellscars I think I made a good choice #jrodsellscars #carsalesman #approved #dealership #carbuyingtips #lexus #es350 ♬ original sound – Joseph Rodriguez
The Daily Dot reached out to Rodriguez and Lexus for further comment.
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