Weird pickle: Getting rid of my 21 ES for... a 21 ES.
06-09-21, 08:06 AM
#1
Lexus Test Driver
Thread Starter
Weird pickle: Getting rid of my 21 ES for... a 21 ES.
So apparently I have $4,000 in positive equity (on my first try) and got an official offer for my ES on Vroom for a lease buyout. They're ready to pick it up, no questions asked. I was excited and ready to do it... so I can bag the equity and get another ES, this time with more options. So I call up my dealer and they are putting a $3,500 mark-up on ES Hybrids. So yeah... still thinking of Tesla, or maybe another Lexus model where there's no markup... (if there is one) but I just want the ES Hybrid as I'm simply in love with the powertrain packaged together w/ the ES.
So if you have an ES AND a spare car... now's a good time to sell and you'll likely get some equity. The leasing/hacking community is on fire with people offloading leases and taking in bags of cash (because they have a spare car) or are able to find another car.
I think I'll likely be keeping my ES though unless some Lexus dealer wants to deal me a 2021 ES without markups. Apparently all dealers for all car makes right now are not budging off MSRP and in most cases, marking up. It's both a great market and a tough market if you wish to re-acquire a new car. Thought this could help someone in a jam that have an extra car and wished to offload theirs.
So if you have an ES AND a spare car... now's a good time to sell and you'll likely get some equity. The leasing/hacking community is on fire with people offloading leases and taking in bags of cash (because they have a spare car) or are able to find another car.
I think I'll likely be keeping my ES though unless some Lexus dealer wants to deal me a 2021 ES without markups. Apparently all dealers for all car makes right now are not budging off MSRP and in most cases, marking up. It's both a great market and a tough market if you wish to re-acquire a new car. Thought this could help someone in a jam that have an extra car and wished to offload theirs.
06-09-21, 08:39 AM
#2
Lexus Test Driver
So apparently I have $4,000 in positive equity (on my first try) and got an official offer for my ES on Vroom for a lease buyout. They're ready to pick it up, no questions asked. I was excited and ready to do it... so I can bag the equity and get another ES, this time with more options. So I call up my dealer and they are putting a $3,500 mark-up on ES Hybrids. So yeah... still thinking of Tesla, or maybe another Lexus model where there's no markup... (if there is one) but I just want the ES Hybrid as I'm simply in love with the powertrain packaged together w/ the ES.
So if you have an ES AND a spare car... now's a good time to sell and you'll likely get some equity. The leasing/hacking community is on fire with people offloading leases and taking in bags of cash (because they have a spare car) or are able to find another car.
I think I'll likely be keeping my ES though unless some Lexus dealer wants to deal me a 2021 ES without markups. Apparently all dealers for all car makes right now are not budging off MSRP and in most cases, marking up. It's both a great market and a tough market if you wish to re-acquire a new car. Thought this could help someone in a jam that have an extra car and wished to offload theirs.
So if you have an ES AND a spare car... now's a good time to sell and you'll likely get some equity. The leasing/hacking community is on fire with people offloading leases and taking in bags of cash (because they have a spare car) or are able to find another car.
I think I'll likely be keeping my ES though unless some Lexus dealer wants to deal me a 2021 ES without markups. Apparently all dealers for all car makes right now are not budging off MSRP and in most cases, marking up. It's both a great market and a tough market if you wish to re-acquire a new car. Thought this could help someone in a jam that have an extra car and wished to offload theirs.
06-09-21, 09:14 AM
#3
Instructor
It is completely insane right now like the real estate market. Are bags and bags of money falling from the sky on top of the average Joe and Jane or something else going on that so many people suddenly have so much money on hands to throw caution into the winds?
Last edited by ionian; 06-09-21 at 09:18 AM. Reason: ...
06-09-21, 09:17 AM
#4
Lead Lap
Right now, the demand for cars, both new and used, far exceeds the supply, and the result is that prices for both new and used cars have skyrocketed.
The demand for new cars is high, with lots of people going back to work or having stimulus money ready to spend. At the same time, car dealers are struggling to keep inventories at the levels that they would like them because parts shortages have caused problems resulting in the manufacturers not being able to produce as many cars as they would like to produce.
With fewer people being able to find the new cars that they want to buy (at prices that they are willing to pay) and with dealers not taking in as many trade-ins as they would like, demand for used cars is also at an all time high and supplies of used cars are very low.
I have a 2017 UL ES that has virtually every option that was available in a 2017 ES and it is in virtually perfect condition (never been driven in the winter), but I'm finding that I just don't drive the car very much. Last fall, I bought a 2021 RAV4 Limited hybrid, and I'm really enjoying driving the vehicle. It has what is a very sedan-like ride, and, with its higher profile tires, its ride quality might actually be better than that of the ES, and it is loaded with technology that is 4 years newer than that of the ES. Plus, for me at this point in my life, it is a perfectly-sized vehicle. And I especially like the RAV4's fuel efficiency. Since the end of the winter, I've been averaging between 51 and 52 mpg (actually calculated) as it seems that most of my driving is in situations that are perfectly suited for a hybrid. And, with the extra power and instant torque provided by the electric motors, it feels like it has more power than its specs would indicate that it has.
So, for the past 6 months or so, I've considered selling the ES. Four or 5 months ago, I got offers from VROOM and Carvana. They were decent, but they weren't quite good enough to get me to part with the ES. Last week, I checked with VROOM and Carvana again. This time, Carvana offered me about $5000 more than they did a few months ago. Their offer is for over 70% of what I paid for the ES 4 1/2 years ago, which I think is amazing for a car that is moving toward being 5 years old. I figure that the market isn't likely to stay like it is now for a lot longer, and my ES is never going to be worth close to what it is worth now. Unfortunately, I'm not in Carvana's market, and they don't pick up cars this far from their locations, but, if I can make arrangements to get the car to them, I will be selling it.
The bottom line is, as the OP said, if you have a car that you aren't really using, this is the time to sell it because the current market conditions aren't likely to remain for much longer. On the other hand, this isn't an ideal time to have to be buying a car, new or used.
The demand for new cars is high, with lots of people going back to work or having stimulus money ready to spend. At the same time, car dealers are struggling to keep inventories at the levels that they would like them because parts shortages have caused problems resulting in the manufacturers not being able to produce as many cars as they would like to produce.
With fewer people being able to find the new cars that they want to buy (at prices that they are willing to pay) and with dealers not taking in as many trade-ins as they would like, demand for used cars is also at an all time high and supplies of used cars are very low.
I have a 2017 UL ES that has virtually every option that was available in a 2017 ES and it is in virtually perfect condition (never been driven in the winter), but I'm finding that I just don't drive the car very much. Last fall, I bought a 2021 RAV4 Limited hybrid, and I'm really enjoying driving the vehicle. It has what is a very sedan-like ride, and, with its higher profile tires, its ride quality might actually be better than that of the ES, and it is loaded with technology that is 4 years newer than that of the ES. Plus, for me at this point in my life, it is a perfectly-sized vehicle. And I especially like the RAV4's fuel efficiency. Since the end of the winter, I've been averaging between 51 and 52 mpg (actually calculated) as it seems that most of my driving is in situations that are perfectly suited for a hybrid. And, with the extra power and instant torque provided by the electric motors, it feels like it has more power than its specs would indicate that it has.
So, for the past 6 months or so, I've considered selling the ES. Four or 5 months ago, I got offers from VROOM and Carvana. They were decent, but they weren't quite good enough to get me to part with the ES. Last week, I checked with VROOM and Carvana again. This time, Carvana offered me about $5000 more than they did a few months ago. Their offer is for over 70% of what I paid for the ES 4 1/2 years ago, which I think is amazing for a car that is moving toward being 5 years old. I figure that the market isn't likely to stay like it is now for a lot longer, and my ES is never going to be worth close to what it is worth now. Unfortunately, I'm not in Carvana's market, and they don't pick up cars this far from their locations, but, if I can make arrangements to get the car to them, I will be selling it.
The bottom line is, as the OP said, if you have a car that you aren't really using, this is the time to sell it because the current market conditions aren't likely to remain for much longer. On the other hand, this isn't an ideal time to have to be buying a car, new or used.
06-09-21, 09:50 AM
#5
Instructor
$5k more in just a few months? Damn! I read last year the average profit Carvana makes per transaction on a vehicle is about $2,500. Let's say Carvana takes your ES then turns around and passes it onto the next Joe he will probably pay at least $8k more due to the markup. I am guessing it is higher now. Assuming Joe works from home during the pandemic all the savings from not commuting plus the stimulus money it will probably not even out.Maybe Joe isn't spending it on other things or in a market for a house.
06-09-21, 10:20 AM
#6
Lead Lap
$5k more in just a few months? Damn! I read last year the average profit Carvana makes per transaction on a vehicle is about $2,500. Let's say Carvana takes your ES then turns around and passes it onto the next Joe he will probably pay at least $8k more due to the markup. I am guessing it is higher now. Assuming Joe works from home during the pandemic all the savings from not commuting plus the stimulus money it will probably not even out.Maybe Joe isn't spending it on other things or in a market for a house.
When I bought the RAV4 Limited Hybrid, the car that I bought came in the dealer's first shipment of 2021 model year cars. I knew that that wasn't the best time to be buying a new vehicle, but I also knew that, if I had kept my 15+ year old Lexus GX going into the winter, it was going to need new tires, a new battery, and an oil change, and brakes and suspension repairs weren't going to be far behind. So, it didn't seem to make sense to spend a few thousand dollars on an aging vehicle with 15 year old technology. So, at the time when I bought the RAV4, I figured that, if I had waited until this spring or summer, I could have bought it for a much lower price than what I paid last fall.
As it turned out, though, the changing market made my decision to buy the RAV4 last fall a fortunate one. When I bought the RAV4, I was able to negotiate a reasonable discount from MSRP, and Toyota had a small ($500) rebate. If I was to have bought that car now, I may not have even been able to find one in a dealer's inventory, and, if I did find one, I likely would have had to pay MSRP or even a premium over MSRP, and, instead of offering bigger rebates as you would normally expect at this time of the year, Toyota is now not offering any rebates at all on RAV4 hybrids.
For those people who are buying new vehicles right now and who are paying MSRP or even a premium over MSRP, when market conditions return to "normal", which is certain to happen, those buying new cars now are going to be taking a big hit when they want to sell/trade those cars in 3 or 4 years and "normal depreciation levels" have returned to the market.
06-09-21, 10:28 AM
#7
Lexus Test Driver
NOBODY should be buying a new car at the moment. If you're desperate for wheels, buy a clunker and then make your move when the market quiets down
Paying over MSRP for any every day car is nuts.
Paying over MSRP for any every day car is nuts.
The following 2 users liked this post by mikemu30:
dklanecky1 (06-10-21),
Wilson2000 (06-11-21)
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06-09-21, 10:34 AM
#8
Lexus Test Driver
On the real estate side, buyers are just going into more and more debt. Next housing bubble may not be far away after this.
06-09-21, 10:39 AM
#9
...
For those people who are buying new vehicles right now and who are paying MSRP or even a premium over MSRP, when market conditions return to "normal", which is certain to happen, those buying new cars now are going to be taking a big hit when they want to sell/trade those cars in 3 or 4 years and "normal depreciation levels" have returned to the market.
For those people who are buying new vehicles right now and who are paying MSRP or even a premium over MSRP, when market conditions return to "normal", which is certain to happen, those buying new cars now are going to be taking a big hit when they want to sell/trade those cars in 3 or 4 years and "normal depreciation levels" have returned to the market.
06-09-21, 11:06 AM
#10
Lexus Test Driver
The following users liked this post:
ESh (06-12-21)
06-09-21, 11:07 AM
#11
Lead Lap
Hmmm. I could probably sell my 2019 - in pristine condition - for a load of money. 6600 miles without a scratch, but then what would I buy? A new Corvette would be nice but a divorce probably wouldn't... 
JK, JK,...
JK, JK,...
06-09-21, 11:23 AM
#12
Intermediate
I plan on hoarding cash into 2022 and buying some land and a new car (2022 ES350 UL) when the bubble burst. And the bubble will burst when the free money and unemployment stop, taxes and interest rates rise, inflation, rent and mortgage payments resuming etc. etc.
Get it now while the getting is good. This is not sustainable. Add a stock market correction and thousands of repossessions / foreclosures into the mix. I will be saving cash and ready to buy.
Get it now while the getting is good. This is not sustainable. Add a stock market correction and thousands of repossessions / foreclosures into the mix. I will be saving cash and ready to buy.
The following users liked this post:
Wilson2000 (06-11-21)
06-09-21, 12:24 PM
#13
I plan on hoarding cash into 2022 and buying some land and a new car (2022 ES350 UL) when the bubble burst. And the bubble will burst when the free money and unemployment stop, taxes and interest rates rise, inflation, rent and mortgage payments resuming etc. etc.
Get it now while the getting is good. This is not sustainable. Add a stock market correction and thousands of repossessions / foreclosures into the mix. I will be saving cash and ready to buy.
Get it now while the getting is good. This is not sustainable. Add a stock market correction and thousands of repossessions / foreclosures into the mix. I will be saving cash and ready to buy.
The following users liked this post:
rmak (06-09-21)
06-11-21, 01:39 PM
#14
Pole Position
06-12-21, 02:51 AM
#15
I am on the market for a 2019+ ES/h and the prices are above the sky. It is unbeliveable.