The car has navi/no ml and 18's with summer tires. It stickered around $48,800 before tt&t new. It now has about 7500 miles and it is at a dealership. How much should be offered for this vehicle?

 

Get ready for some really low-ball suggestions. I frequent two Porsche boards and visit here occasionally. In all cases, the prices people claim they paid for their cars are ridiculously low. It's almost like a contest to see who paid the least (and there's no way to verify for accuracy).

I live in GA and recently paid $39k for an 06 with ML/Nav/Park Assist/Rr window shade/etc, with 15k mi. Sticker was $50,750. Seemed reasonable to me. Based on that, I'd think an 07 with lower mileage and a few less options should be slightly higher...maybe $41-$42k. Of course, you're not worth your stripes if you don't buy it for $33k (kidding of course).

 

I thought $41,000 should be about right for this car. Do you guys think people are really paying only 3-4% over invoice for new 350's?

 

I paid $41,983. + T&L for that exact car last Oct. I would say if the car is in new cond around $38k-39k.

 

A local dealer is offering me ~$2k off MSRP, how/where are you getting that kind of deal?

 

That deal was last Oct, from what everyone is saying lately, inventory is very low right now. When I bought, I shopped virtually every dealer in So Cal. The dealer I bought from had around 18 GS350 on the ground at that time, also bought on the very last day of the month. If the dealers you are shopping at have only a few in stock, it will be very difficult to get that price until inventory is high again.

 

I paid $47,347 out the door for my car. This was last week, that's with 8.75% tax in my county and registration for CA. list of base + options:

base: $44,150
summers tires: 950
Navi (non-ML): 1,850
rear spoiler: 200
Rain sensor: 525
rear sunshade: 210
ventilated seats: 200
XM sat radio: 486
Prefered pack: 197
****************
Subtotal: $48,768
delivery fee: 715
---------------------
TOTAL MSRP: $49,483
Actual OTD: $47,347

total savings from OTD - MSRP+tax+lic=47,347-54,225= <6878>
with saving $6878, that's enough to get me some nice custom wheels/tires plus body add-ons and maybe coilovers too.

 

Thanks for the replies. I was thinking no more than $40k.

 

forgot to add that mine was brand new from the dealership.

 

What are the depreciation rates of cars? This seems to be the question.

Typically depreciation of new cars is 15% the first year, and about 5-9% every year after. The rate of depreciation is going to depend on what make and model of car you have. Some cars hold their value better than others. For example, a one year old Lexus is going to depreciate at a lower rate than a one year old Honda Accord.

If the sticker of the car you are considering was $48,800, then about $41,480 is going to be a decent price. Obviously, anything less is good. Keep in mind that the GS350 is a desired car. I had to go to Long Beach, CA to get mine because the dealers couldn't get a Black/Black in my area, Houston, without an extensive wait period. If the ride is clean, clean, clean and checks out on car fax, then certainly 39 to 41 is going to be a good deal if for no other reason than the fact that drive out depreciation, the highest of anytime in the cars history, is gone.

How much is that worth to you? Glad you asked. Assuming the car depreciates 15% in the first year and 9% there after, then you would have about $3000 less into the car [(15% - 9%) * $48,800] than someone who bought new. Nice savings for buying a GS350 with only 7,000 miles. There are quite a number of assumptions in the calculation, but that's about right.

Kelly Blook Book shows that the invoice for the GS350 with all options but ML and G-Spider wheels, but includes 18" summer tires with 5 spoke wheels, is $43,186, MSRP is $49,372 and Kelly Blue Book for the car is $49,125 new. That's not much difference in Kelly Blue Book new and MSRP new; a good thing and suggest that the markup is about what you would expect at approximately 13.5%; $43,186 verse $49,125.

Hope that helps. Happy hunting.

 

From my salesman's knowledge (take it with a grain of salt) he said that it's usually $0.18 per mile for depreciation.

 

A grain of salt is about right. Your sales man is probably a bit conflicted in his statement. So, a GS350 that was one year old with 7000 miles should only be depreciated about $1250 according to your salesman. What a resale value we have with Lexus; if only your trades were that good... lol...

I think not; but, do a little research. I think you'll find that the minute you leave the dealership with the car that 18 cents a mile is out the door... no pun intended... There are quite a number of factors to consider; even so, they all boil down to one thing... profit profit profit... and a dealer that could convience a customer that the depreciation rate was only 18 cents a mile within the first year is on my list of best salesman or.... should that be best BS'er....