About to purchase an L-Cert ES 350 2016 or 2017
04-05-18, 06:18 PM
#1
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Thread Starter
About to purchase an L-Cert ES 350 2016 or 2017
I'm looking to buy an L-cert ES 350 2016 or 2017. I'm looking only at low mileage (<25k miles) being that I put at least 30k miles per year on the car and I want to start as low as possible on the odometer. The main reason I'm choosing Lexus is because of the L-Cert warranty. I'd really like to find a Premium model (above basic but below nav) just because I don't like the totally stripped down ones, but I don't really need everything in the nav package. The problem is, I'm only finding the basics and navs/luxury models. I'd like to be OTD at no more than $35k (tax, tag, title, everything) which means I need to find the care for around $32k tops. Hasn't been easy but I'm close. Any tips, suggestions, or thoughts that anyone with experience buying one of these recently (L-cert only) would be appreciated. Or anything that you feel I should know before buying that might change my mind. I've already test driven a couple so I know more or less how they feel & drive.
04-05-18, 06:57 PM
#2
Lead Lap
You should know that one and two year old CPO vehicles are among the worst buys available in the auto market. Because not many 2016 or 2017 cars have yet come back to dealers as trade-ins or lease returns, the supply of those 2016 or 2017 vehicles is quite low. On the other hand, because a large number of people don't realize how much discounting is available on brand new cars and think that, by buying a one or two year old vehicle, they are getting an "almost new" car at considerable savings, the demand for those 2016 or 2017 CPO vehicles is high. The result of the combination of low supply and high demand is inflated prices, and, because the dealers know that someone will eventually come along and pay those inflated prices, they tend to hold to them.
Since sedan sales, including those for the ES, have been low for the last couple of years, significant discounting is available on brand new ESs, and you should be able to buy a brand new 2018 ES for only marginally more than what you are talking about for a used/CPO 2016 or 2017 ES. And, even though that might be a bit more than what you want to spend now, at trade-in or re-sale time a few years down the road, the 2018 one-owner ES will command a trade-in or re-sale price far in excess of that of a 2-owner 2016 or 2017 ES. Further, since , with the CPO, you would be starting with about 25,000 or more miles on the odometer, those 25,000 miles, by themselves, will make the car, at trade-in or re-sale time, be worth between $2000 and $2500 less than a car with with 25,000 fewer miles on the odometer, which will further increase the difference between the value, at trade-in or re-sale time, of a 2018 ES that you might buy now and that of a 2016 or 2017 CPO ES that you might buy now.
Unless you can get a super deal on such a 2016 or 2017 CPO ES, my suggestion would be to consider finding a way to buy a new 2018 ES and not a one or two year old CPO ES.
Since sedan sales, including those for the ES, have been low for the last couple of years, significant discounting is available on brand new ESs, and you should be able to buy a brand new 2018 ES for only marginally more than what you are talking about for a used/CPO 2016 or 2017 ES. And, even though that might be a bit more than what you want to spend now, at trade-in or re-sale time a few years down the road, the 2018 one-owner ES will command a trade-in or re-sale price far in excess of that of a 2-owner 2016 or 2017 ES. Further, since , with the CPO, you would be starting with about 25,000 or more miles on the odometer, those 25,000 miles, by themselves, will make the car, at trade-in or re-sale time, be worth between $2000 and $2500 less than a car with with 25,000 fewer miles on the odometer, which will further increase the difference between the value, at trade-in or re-sale time, of a 2018 ES that you might buy now and that of a 2016 or 2017 CPO ES that you might buy now.
Unless you can get a super deal on such a 2016 or 2017 CPO ES, my suggestion would be to consider finding a way to buy a new 2018 ES and not a one or two year old CPO ES.
04-05-18, 07:23 PM
#3
Lead Lap
Adding to what I said in the previous post, right now, Lexus is offering a $750 rebate on the ES. In July or August, the rebate that Lexus will be offering on the 2018 ES is likely to be $3000 or more. And, considering that the 2018 model year will be the last year for the Generation 6 ES, it is likely that there will also be significant unadvertised incentives that Lexus will be offering to dealers to help them reduce their inventories of the 2018 ES.
Thus, if you can wait 3 or 4 months, you should be able to buy a brand new 2018 ES with 0 miles on the odometer for right around the same money, possibly even less, than what you are willing to pay now for a one or two year old similarly-equipped CPO ES with 25,000 miles on its odometer.
Thus, if you can wait 3 or 4 months, you should be able to buy a brand new 2018 ES with 0 miles on the odometer for right around the same money, possibly even less, than what you are willing to pay now for a one or two year old similarly-equipped CPO ES with 25,000 miles on its odometer.
04-05-18, 07:28 PM
#4
Rookie
Thread Starter
You should know that one and two year old CPO vehicles are among the worst buys available in the auto market. Because not many 2016 or 2017 cars have yet come back to dealers as trade-ins or lease returns, the supply of those 2016 or 2017 vehicles is quite low. On the other hand, because a large number of people don't realize how much discounting is available on brand new cars and think that, by buying a one or two year old vehicle, they are getting an "almost new" car at considerable savings, the demand for those 2016 or 2017 CPO vehicles is high. The result of the combination of low supply and high demand is inflated prices, and, because the dealers know that someone will eventually come along and pay those inflated prices, they tend to hold to them.
Since sedan sales, including those for the ES, have been low for the last couple of years, significant discounting is available on brand new ESs, and you should be able to buy a brand new 2018 ES for only marginally more than what you are talking about for a used/CPO 2016 or 2017 ES. And, even though that might be a bit more than what you want to spend now, at trade-in or re-sale time a few years down the road, the 2018 one-owner ES will command a trade-in or re-sale price far in excess of that of a 2-owner 2016 or 2017 ES. Further, since , with the CPO, you would be starting with about 25,000 or more miles on the odometer, those 25,000 miles, by themselves, will make the car, at trade-in or re-sale time, be worth between $2000 and $2500 less than a car with with 25,000 fewer miles on the odometer, which will further increase the difference between the value, at trade-in or re-sale time, of a 2018 ES that you might buy now and that of a 2016 or 2017 CPO ES that you might buy now.
Unless you can get a super deal on such a 2016 or 2017 CPO ES, my suggestion would be to consider finding a way to buy a new 2018 ES and not a one or two year old CPO ES.
Since sedan sales, including those for the ES, have been low for the last couple of years, significant discounting is available on brand new ESs, and you should be able to buy a brand new 2018 ES for only marginally more than what you are talking about for a used/CPO 2016 or 2017 ES. And, even though that might be a bit more than what you want to spend now, at trade-in or re-sale time a few years down the road, the 2018 one-owner ES will command a trade-in or re-sale price far in excess of that of a 2-owner 2016 or 2017 ES. Further, since , with the CPO, you would be starting with about 25,000 or more miles on the odometer, those 25,000 miles, by themselves, will make the car, at trade-in or re-sale time, be worth between $2000 and $2500 less than a car with with 25,000 fewer miles on the odometer, which will further increase the difference between the value, at trade-in or re-sale time, of a 2018 ES that you might buy now and that of a 2016 or 2017 CPO ES that you might buy now.
Unless you can get a super deal on such a 2016 or 2017 CPO ES, my suggestion would be to consider finding a way to buy a new 2018 ES and not a one or two year old CPO ES.
The reason that I’m even looking at a CPO car by Lexus is because I typically put on about 30+ thousand miles a year on a car. If I get an only two-year-old Lexus CPO, that could mean that I would have warranty on the engine for 120000 - 150,000 miles. So I would have better warranty coverage than if I bought new. I’m in South FL and at this moment there are roughly 20 - 30 low mile 2016-2017 CPO es 350 within 25 miles of my house. No shortage of supply around here and the inventory changes continuously from week to week. Price range on these particular low mile 2016-17 cars right now ranges from $29k for a basic model to $34k luxury model loaded w nav. I have a specific budget I’m working with and I really need to hold firm at around $32k.
So I’m curious what you mean by “marginal” price difference but it seems more like a $10k difference to buy new and get less warranty.
04-05-18, 11:44 PM
#5
Driver School Candidate
Thank you for that super reply. Great insight.
The reason that I’m even looking at a CPO car by Lexus is because I typically put on about 30+ thousand miles a year on a car. If I get an only two-year-old Lexus CPO, that could mean that I would have warranty on the engine for 120000 - 150,000 miles. So I would have better warranty coverage than if I bought new. I’m in South FL and at this moment there are roughly 20 - 30 low mile 2016-2017 CPO es 350 within 25 miles of my house. No shortage of supply around here and the inventory changes continuously from week to week. Price range on these particular low mile 2016-17 cars right now ranges from $29k for a basic model to $34k luxury model loaded w nav. I have a specific budget I’m working with and I really need to hold firm at around $32k.
So I’m curious what you mean by “marginal” price difference but it seems more like a $10k difference to buy new and get less warranty.
LesZ makes some good points.
That said, if you're patient, a good negotiator and a bit lucky, you can make it out with a great deal on a CPO.
I'm not saying it was easy, but I purchased my certified 2016 ES 350 fully loaded (ex. Mark Levinson, Ultra Luxury, Upgraded 18" Rims, etc) for less than 31K (34K out the door including all taxes and dealer fees).
Something to keep in mind is that if my same vehicle was new and came with all the same options, it would've cost 52K - 53K (before taxes), with taxes we're talking around 57K - 58K.
Now let's say you were able to shave off 5K - 10K from a new vehicle purchase (with 10K being highly unrealistic in my opinion), we're still talking about something around 50K (out the door) compared to 34K.
A 16K difference (if you're lucky) may not seem that bad to some, but keep in mind if the vehicle is certified that you keep the remainder of the original warranty + 2 years unlimited miles.
On top of that, if you purchase the vehicle certified you get a far better price on an extension of the certified warranty (should you decide to purchase it - which you can at different Lexus dealers).
I purchase the extended certified platinum warranty for an extra 5 years (unlimited miles and 0 deductible) on my certified warranty (for about $2900.00).
So my vehicle is certified for all repair work (other than windshields, tires, rubber parts, etc) until September of 2026 for a grand total of 37K.
Some people may not think it's worth it, but for me personally, the savings and extra warranty always put a smile on my face (especially the fact that I'm never questioning whether I got screwed by the dealer).
That said, LesZ does make some good points, but in my personal situation, I'm definitely glad I purchased used.
Good luck,
Dan
04-06-18, 08:18 PM
#6
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The reason that I’m even looking at a CPO car by Lexus is because I typically put on about 30+ thousand miles a year on a car. If I get an only two-year-old Lexus CPO, that could mean that I would have warranty on the engine for 120000 - 150,000 miles. So I would have better warranty coverage than if I bought new. I’m in South FL and at this moment there are roughly 20 - 30 low mile 2016-2017 CPO es 350 within 25 miles of my house. No shortage of supply around here and the inventory changes continuously from week to week. Price range on these particular low mile 2016-17 cars right now ranges from $29k for a basic model to $34k luxury model loaded w nav. I have a specific budget I’m working with and I really need to hold firm at around $32k.
I also looked at 2017 year models, but since very little changed (which mattered to me at least), I just had to make sure to find a 2016 with the Safety+ option. I wanted adaptive cruise control & lane/steering assist for sure. 2016 had it available as an option, while 2017+ has it as standard equipment. After finding what I wanted, there was really no logical reason for me to go with a 2017 over a 2016 (w/ the Safety+ option) since a 2017 obviously costs more than a 2016. I found one with 17k on the odometer -so I'm happy.
Also, if you're a Costco member, you can go through their Auto Buying Program and save some $$$. I got a few hundred dollars knocked off the price by going through it. Not much, but every little bit counts.
Last edited by thekopp; 04-06-18 at 08:23 PM.
04-07-18, 02:18 AM
#7
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Thread Starter
Just thought I'd update this post to say I found my car. It's an L-Certified 2016 ES 350 Nav & loaded with all the driver safety features (PCS, Lane Departure, etc), touch control overhead lighting, Nightfall Mica with tan leather / brown interior, only 6,700 miles on the odometer, It had just come out of service and been certified. The original window sticker was found so I know I got a great deal. Paid about $10k less than original sticker which included an additional 2 years extension on the CPO warranty - and THAT is what makes this car such an incredible deal. So basically, I have 6 years of UNLIMITED miles bumper to bumper warranty, which for me will be between 150-200k miles. I'm happy but even better the wife is since it was her favorite of 3 different cars at this dealership any of which I would have been happy with for about the same price. I'll try and update this post with a picture later. Thanks everyone!
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04-08-18, 08:07 PM
#8
I'm a little different.
But if it was me I would shop a 2016 (lower price) with the lowest miles (10k-15) in good condition, that I could find that I like. I would also check the after market Extended Service Contracts for 150k Warranty's.
At $32k - $35k OTD TT&T included, I would be in a 2016 ES350 Ultra Luxury with about 12k miles and a 150k Service Contact with Platinum Coverage for everything. Probably at like $27k - $30k, OTD. With the Warranty.
If I was driving 30k per year. I would definitely want a 10k- 14k miles to start out with. Also......... in one of your post you metioned "Engine". There is likely a 99.9% chance that if the Oil was changed at intervals in the car any where from 0 to 14k miles in the ES 350.......... you are Not going to have a Engine problem. LOL! Maybe something else, but Not the Engine. Auto Trader, Car.com, and Cargurus, would be on my Daily Shopping list. Up to a 300 miles Radius or even further, if I saw the right deal. But this is just how I do it.
PS: I use to be in Sales, at a Very Major Southeastern Lexus Dealer. A while back. Good Luck !!!!
But if it was me I would shop a 2016 (lower price) with the lowest miles (10k-15) in good condition, that I could find that I like. I would also check the after market Extended Service Contracts for 150k Warranty's.
At $32k - $35k OTD TT&T included, I would be in a 2016 ES350 Ultra Luxury with about 12k miles and a 150k Service Contact with Platinum Coverage for everything. Probably at like $27k - $30k, OTD. With the Warranty.
If I was driving 30k per year. I would definitely want a 10k- 14k miles to start out with. Also......... in one of your post you metioned "Engine". There is likely a 99.9% chance that if the Oil was changed at intervals in the car any where from 0 to 14k miles in the ES 350.......... you are Not going to have a Engine problem. LOL! Maybe something else, but Not the Engine. Auto Trader, Car.com, and Cargurus, would be on my Daily Shopping list. Up to a 300 miles Radius or even further, if I saw the right deal. But this is just how I do it.
PS: I use to be in Sales, at a Very Major Southeastern Lexus Dealer. A while back. Good Luck !!!!
Last edited by jgscott; 04-09-18 at 08:43 AM.
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