Please Help With Car Buying Decision - Used 2017 or New 2021 Lexus???
10-23-20, 07:32 AM
#151
Adding to what's already been said, keep in mind that the pandemic has affected inventory levels, which in turn affects selling prices. Dealers might be more likely to hold firm at higher prices because they have a limited stock. If they don't have cars to sell, they don't make any money, so they may try to squeeze every bit out of every sale. I wouldn't be surprised if they let people walk over $500, let alone $2000.
Good luck either way.
Good luck either way.
10-23-20, 07:34 AM
#152
Lexus Fanatic
They let me walk over a free wheel protection program on a 2016 ES350, and this was at the height of the pandemic when they were still only open by appointment. That salesman has sold me 4 cars too.
They know someone will buy it, and there may not be another car coming they can sell for more. They're not as interested in volume as they were.
As everybody knows I've been shopping for S560s and 750s, cars that DO sit on lots a long time and have niche buyers. I have had dozens of dealers let me walk when we were not that far apart. Some of those cars are still on lots, those dealers haven't called me.
The idea that car dealers will never let you walk just isn't true, especially now. Inventory shortages are very real. I drive by our local Carmax, the lot is half full, its normally always full. New cars too.
They know someone will buy it, and there may not be another car coming they can sell for more. They're not as interested in volume as they were.
As everybody knows I've been shopping for S560s and 750s, cars that DO sit on lots a long time and have niche buyers. I have had dozens of dealers let me walk when we were not that far apart. Some of those cars are still on lots, those dealers haven't called me.
The idea that car dealers will never let you walk just isn't true, especially now. Inventory shortages are very real. I drive by our local Carmax, the lot is half full, its normally always full. New cars too.
Last edited by SW17LS; 10-23-20 at 07:41 AM.
10-23-20, 07:44 AM
#153
Lead Lap
Thread Starter
I've been watching a CPO 2017 Lexus IS F Sport with Navigation and 15K Miles for a while. Lexus "Plus" Dealer started at about $30,000 over a month ago. They've dropped $500 a week for the last 5 weeks and are now at $27,500. Before their price cuts, they told me they don't haggle. I said that's fine and walked. They keep calling me to "come in an do a deal". I don't respond but I think why bother when you're not willing to negotiate? I'm fine with sitting back and letting their oxygen run out. The market will price it accordingly eventually - and it won't be for what they're asking. Let them send it to auction and see what they'll get. These cars are depreciating and tying up their cash while they sit on their lot unsold.
10-23-20, 07:54 AM
#154
Lexus Fanatic
I've been watching a CPO 2017 Lexus IS F Sport with Navigation and 15K Miles for a while. Lexus "Plus" Dealer started at about $30,000 over a month ago. They've dropped $500 a week for the last 5 weeks and are now at $27,500. Before their price cuts, they told me they don't haggle. I said that's fine and walked. They keep calling me to "come in an do a deal". I don't respond but I think why bother when you're not willing to negotiate? I'm fine with sitting back and letting their oxygen run out. The market will price it accordingly eventually - and it won't be for what they're asking. Let them send it to auction and see what they'll get. These cars are depreciating and tying up their cash while they sit on their lot unsold.
It seems ridiculous, especially when they keep reducing it but that's how they operate. You could offer them $500 less and they let you walk and then a week later they reduce it $500. They just start at a price and systematically reduce it until they get somebody to bite.
Lexus Plus dealers will not negotiate with you, you're basically just negotiating with yourself. Their cars are often overpriced too.
10-23-20, 08:01 AM
#156
Lexus Fanatic
Whats even more frustrating is most dealers adopt this policy for pre owned cars even if they don't for new cars.
10-23-20, 08:09 AM
#158
I've been watching a CPO 2017 Lexus IS F Sport with Navigation and 15K Miles for a while. Lexus "Plus" Dealer started at about $30,000 over a month ago. They've dropped $500 a week for the last 5 weeks and are now at $27,500. Before their price cuts, they told me they don't haggle. I said that's fine and walked. They keep calling me to "come in an do a deal". I don't respond but I think why bother when you're not willing to negotiate? I'm fine with sitting back and letting their oxygen run out. The market will price it accordingly eventually - and it won't be for what they're asking. Let them send it to auction and see what they'll get. These cars are depreciating and tying up their cash while they sit on their lot unsold.
10-23-20, 08:15 AM
#159
Lexus Fanatic
In light of that, $27,500 for this one sounds like a pretty good buy.
10-23-20, 08:17 AM
#160
Lead Lap
Thread Starter
My target is $24,000 for the 2017 and they give me $4,000 for my trade-in. So I'll give them $20,000 lump sum cash plus my trade-in. Their current offer is $27,500 minus $2,000 for my trade-in. So we are about $6,000 apart.
10-23-20, 08:23 AM
#161
Lexus Fanatic
Again I ask, how did you arrive at that number?
Your numbers have to make sense, come from some basis in data. If the MMR is showing auction values of $28-32k how have you come to the conclusion that your desire to pay $4-6k less retail than the confirmed wholesale value makes any sense?
Then there's the trade, $2k is probably about what its worth, so you want $2k over value on the trade so really you want to pay retail $6-8k less than what they could get for the car wholesale. That IS is not going to get down to that value, the dealer has access to the MMR data which was generously shared with you above. They likely paid more than that for the car. I just don't see how you have any rationale to back up your number beyond "thats what I want to pay"
Gonna be driving that ES330 for a while my friend lol
10-23-20, 08:25 AM
#162
I’m starting to look (again) for a car for myself, and the more I look at the used ones (1-3 year old ones), the more it looks like a new one is a better buy.
10-23-20, 08:29 AM
#163
Lexus Fanatic
10-23-20, 08:47 AM
#165
Lexus Fanatic
Makes sense. They offered him $2k and are planning on auctioning it. Not gonna get $4k.