New Lexus Value in Three Years?
#1
Pole Position
Thread Starter
New Lexus Value in Three Years?
I just bought a 2023 RX350h (hybrid) for the sticker price of $65,755. I do a sort of mental accounting "self lease" and expect it will be worth about 55% of that in 3 years at 36K miles with excellent mechanical and cosmetic care and a new set of tires between 18 and 24 months in. Does this sound right?
#2
Lexus Fanatic
Sounds about right...
#4
Could also check and see what the Lexus financial residuals are being offered right now. Leases aren't really being propped up right now with subvented (read: boosted) residuals. So they could be a decent barometer to expected depreciation.
Current 3 year RX350h residuals look to be 65% with 10K a year, so a few points lower for 12K.
Current 3 year RX350h residuals look to be 65% with 10K a year, so a few points lower for 12K.
#6
Lexus Test Driver
#7
Lexus Fanatic
The bulk of a car's depreciation is in the first 5 years, so if you own it for 3 years, you have shouldered a lot of the depreciation.
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#8
Intermediate
#9
Pole Position
Thread Starter
You might do that, but the market absolutely does not. If your car $65,000 car is stolen, totaled or otherwise needs to be replaced in 3 years, in normal low inflation times, you'll never ever ever ever get $50,000. From any insurance company or any used car buyer. I'm the original poster. I'm thinking that 55% is about right. This last round I got 66% of what I paid for my 2020 RX after 30 months. Extrapolating that out to 36 months, that probably equates to about 60%. But we had an inflation spike. I think my prior 2017RX fetched 50% after 42 months, with normal miles and excellent condition. I just posted here to confirm my numbers and it seems that it's a good estimate.
Last edited by daryll40; 01-18-23 at 02:42 PM.
#10
Intermediate
You might do that, but the market absolutely does not. If your car $65,000 car is stolen, totaled or otherwise needs to be replaced in 3 years, in normal low inflation times, you'll never ever ever ever get $50,000. From any insurance company or any used car buyer. I'm the original poster. I'm thinking that 55% is about right. This last round I got 66% of what I paid for my 2020 RX after 30 months. Extrapolating that out to 36 months, that probably equates to about 60%. But we had an inflation spike. I think my prior 2017RX fetched 50% after 42 months, with normal miles and excellent condition. I just posted here to confirm my numbers and it seems that it's a good estimate.
#11
Pole Position
Thread Starter
#12
Intermediate
#13
Pole Position
Thread Starter
To be honest, I don't know what you're talking about or really how you think on the depreciation issue. But I wish you well. I've been buying/selling/trading new cars since 1976. In the real world, they depreciate much faster than the way you seem to be explaining it here. Again, good luck!
#14
Lexus Test Driver
Couple of things if I may.
First:
Nobody will pay 1/2 the MSRP New Price for a car to drive it for the LAST HALF of it's "useful life".
What the heck kinda deal is that? lol
Why would you or anyone else agree to this? lol
Wishful thinking for people selling their cars but nobody is ok with that.
Next:
Who decides what the "useful life" is?
First:
Nobody will pay 1/2 the MSRP New Price for a car to drive it for the LAST HALF of it's "useful life".
What the heck kinda deal is that? lol
Why would you or anyone else agree to this? lol
Wishful thinking for people selling their cars but nobody is ok with that.
Next:
Who decides what the "useful life" is?
#15
Intermediate
To be honest, I don't know what you're talking about or really how you think on the depreciation issue. But I wish you well. I've been buying/selling/trading new cars since 1976. In the real world, they depreciate much faster than the way you seem to be explaining it here. Again, good luck!