[hurricane]

The dealer told me that Lexus cars tend to hold their value better than other luxury cars. I know that no car is a good "investment", but I want the car I buy to depreciate as little as possible. The dealer said that within two years on a five year note on a new IS300, I would be able to at least break even (would not be upside down in my payments). This is an important factor to me. In 2-3 years I would like to upgrade my IS300 for an IS400

Can any current Lexus owners confirm that what my dealer is saying is true?

Rich

 

[hurricane]

hellooooooooo....

 

[Daniel]

You can check the blue book for the previous years of Lexus, MB, and BMW. You will find that Lexus is among the highest, but I think MB still has the highest resale value.

 

[Leader]

Successful cars retain their value based on pretty basic things - a couple of which are: (1) do they hold up well (are they well-built?); and (2) how quickly does the styling change.
Lexus scores very well in both categories. They have an excellent reputation for reliability and customer satisfaction (thank you J.D. Power) and, once they release a model, the year-to-year changes are very minor until they completely redesign it (usually five-six years down the road). (Exception? The gawd-awful ES-250.)
Lexus used car prices are generally quite strong.
Interestingly enough, Lexus' parent, Toyota, has a decent rep for quality, but drastically changes the designs of their cars every couple of years, which hurts resale.
This same tendancy has hurt Acura's sales in recent years.
BMW on the other hand - may not have the world's best reliability record, but their styling changes soooo slowly (glacier-like in my opinion), a five-year-old model looks quite similar to a 2001. So, resale is good.

[This message has been edited by Leader (edited October 25, 2000).]

 

[cardinal_creek]

In my area the dealers *try* to sell three year old used GS3's for 36/37k - only maybe 2k less than what one would have paid for one in '98. That leads me to believe that the GS's are holding their value pretty well.

 

[IIIseries]

You think thats something? Jump on Autotrader.com and you will see the LOWEST you will find a 98 GS400 priced at is about $45g's

Originally posted by cardinal_creek:
In my area the dealers *try* to sell three year old used GS3's for 36/37k - only maybe 2k less than what one would have paid for one in '98. That leads me to believe that the GS's are holding their value pretty well.

 

[Stephen]

The lease end on my LS400 is $44K, thats with 82,500 miles. Thats about 69%, the Mercedes S Class leases figure a 66% resale.

------------------
Stephen Withrow
[email protected]

98 Lexus LS400
97 Ford Explorer Limited

 

[brad]

I'm completing paperwork for a 98 GS 400, 60K miles, no dings or dents, fully loaded w/nav (no chrome wheels or spoiler) for 33.9K and it's certified! I feel pretty strong about this deal.

Originally posted by IIIseries:
You think thats something? Jump on Autotrader.com and you will see the LOWEST you will find a 98 GS400 priced at is about $45g's

 

[Toronado]

I've always figured "investment" should never be used in the same line as "buying a (new) car." When I (finally) go buy one I'll just keep pushing that voice down inside of me that tells me how much money I'm throwing down the toilet! NEVER, IMHO, buy a non-collector car with any idea of reaping rewards down the road 'cause it ain't gonna happen.

 

[wazzup]

Questioning Lexus resale value??

I hear Hyundai's are pretty good cars.
Go buy on of them cars.
better bring some Elmers glue just in case your door falls of.

 

[ISFAN]

My lease has a 67% residual. I believe LEXUS may have missed the mark on this one.

I do not believe that the 2001 IS300 will hold its value that good. Number one reason is the 2002 IS300 will most likely come out with the little options that are lacking on this model, thus making it less attractive in the used car market.

I could be wrong, but I find it hard to believe that my car will be worth 67% of the MSRP in 3 years. We will wait and see.

 

[mrclam]

what about z8s? they're estimated at 300k in three years or so

Originally posted by Toronado:
I've always figured "investment" should never be used in the same line as "buying a (new) car." When I (finally) go buy one I'll just keep pushing that voice down inside of me that tells me how much money I'm throwing down the toilet! NEVER, IMHO, buy a non-collector car with any idea of reaping rewards down the road 'cause it ain't gonna happen.

 

[DanR]

Hey ISFAN,
I busted on you for your stereo comment, but you are a little more on the mark here. If lexux hold there value so well, why are there 1997 LS 400 in the paper here for $27.9? Boy that's almost half of retail on the car. Lexus car loose almost 25% of there value in the first year. Let me clairfy that statement. The 25% is approx. the difference between MSRP and clean wholesale on a one year old car. But you say I would not wholesale my car and could sell it outright. True, but wholesale represents the cash value of the car. It is a harsh reality. I have worked in the car businesss and have owned a new Lexus. The first year takes the biggest hit and it taperes off from there and yes Lexus set the 3 year residual around 67%, but a lot of these cars go to auction in Orlando in the southeaast and don't fetch the 67% estimated residual. Also, bear in mind that dealers are trying to make 4-5K on used cars that is why the retail residuals look good. I wouldn't pay retail for any car even the IS300. And you don't have to at least here in the South.

 

[Chiphead]

This shows the number of registered Canadian cars that were released between 84 and 88 that are still on the road today.

Here is the study:
http://www.just-auto.com/features_detail.asp?art=303

 

[Nate]

In the Canadian sample above, please pay very careful attention to the sample sizes of the individual manufacturers. Notice Toyota is the highest out of the bunch that has a decently big sample... I was wondering how Toyota got so far down the list until I saw the sizes...

 

[lhn5]

WEll 67% of the value of the current purchase price is one thing. But the new features will not be free, and it could still be perhaps a significantly lower percentage of the price of a NEW IS300 3 years from now.

Originally posted by ISFAN:
My lease has a 67% residual. I believe LEXUS may have missed the mark on this one.

I do not believe that the 2001 IS300 will hold its value that good. Number one reason is the 2002 IS300 will most likely come out with the little options that are lacking on this model, thus making it less attractive in the used car market.

I could be wrong, but I find it hard to believe that my car will be worth 67% of the MSRP in 3 years. We will wait and see.

 

[Toronado]

mrclam,

The Z8 would be considered "somewhat of a collectors car." (HA!) Of course, they're not building a many thousands of them as they do any Lexus.

wazzup,

I'm not questioning Lexus resale value at all. What I do question and scoff at is the notion that it would be an investment... that is, if you consider an investment as actually making money of your purchase.

Look, a 1996 Chevy Impala new was around 24,500 depending on where you got it. Right now, a low mile (25k or so) will bring at least that. THAT might be considered an investment. Is it as good a car as an LS400, SC400, GS400, IS300... I would never argue that but I know in another ten years or so the Impala is gonna be worth a LOT more.

 

[tony]

Originally posted by Toronado:
Look, a 1996 Chevy Impala new was around 24,500 depending on where you got it. Right now, a low mile (25k or so) will bring at least that. THAT might be considered an investment. Is it as good a car as an LS400, SC400, GS400, IS300... I would never argue that but I know in another ten years or so the Impala is gonna be worth a LOT more.

If you mean an Impala SS, then yes, I might agree with you. That was a very limited production vehicle made for what, only three years? And for two of those in only two colors (burgundy and black)?

------------------
Tony
'01 Spectra Blue
'94 Turbo Miata

 

[Toronado]

Yeah, they made it from 94-96 in very limited numbers. 94's and 95's were OK but in 96 they went to buckets and floor console. You could get 94's in any color as long as it was black, 95's in black or burgundy and 96's in black, burgundy and green. I searched long and hard for a 96 for quite a while but didn't have the green available to get one - most were 25k-26k. I settled for my 92 SHO.

I've driven a few of them and they're not NEARLY refined as any Lexus... My parents LS400 is 3 times the car but there is something real visceral about a low-tech American V8.

 

[ISFAN]

Originally posted by lhn5:
WEll 67% of the value of the current purchase price is one thing. But the new features will not be free, and it could still be perhaps a significantly lower percentage of the price of a NEW IS300 3 years from now.

Granted, but the new features when we are dealing with used vehicles will make the 02 model more appealing. I am talking in 2004, when those models come out the 01 model in my opinion will not hold its value as well as the 02 model with the nice little options in the interior.

I think the one thing the 01 IS has going for it is that it is the first year make of this car, which in the long run could help the classic value of this car should it turn out to be one of those types of vehicles.