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Opinions vary, with most here, I think, will suggest it is not worth the money. I am not of that opinion. I am not sure if it is important per se, but since everything is negotiable (well, perhaps not at the moment), then depending on the deal, it could be worth it to you, or not, as long as you are aware of what you are and are not getting. You are still getting a used car. It isn't new. So you still need to check it's history etc before you buy. They are allowed to sell CPO that have been in an accident - so you do need to review the car as used - esp for rust, body damage etc.
The benefits, as I see it, are:
1) Similar experience as new car buying - our CPO GX was prepped by the dealer and had the big red bow on it etc. Not a big deal to me, but my wife really liked that.
2) Two years maintenance - this really means two oil changes and tire rotations. Not a ton, but it isn't nothing - prob worth a couple hundred bucks. Also gives a cadence to have the dealership deal with any issues that crop up because you have ...
3) a 2 year unlimited mile factory warranty. Not exactly the same as the new car warranty but covers a ton. How much you value this is up to you. There are many who place near zero value on this here ("Dave Ramsey says you are throwing your money away!") - but I am not one of them. The value of the CPO warranty, esp for a CPO car that is outside of the factory powertrain (so say you buy a 6 yo car) is that I don't have to worry about anything with the car for a couple of years. Yes these are reliable cars on average. But you are still buying a used car. So THIS particular car, unlike new cars that have essentially the exact same history before they come to you, along with being older also has a much higher variance in possible histories. Higher variance often means higher risk.
My personal experience, and this informs my opinion, but of course is only antidotal, has been the following:
A) '02 CPO RX300 bought in '08 for $15,500. Repairs under warranty approx. $4k (25% of purchase price) (in year 3 of CPO they replaced a slipping transmission).
B) '07 CPO IS250 bought in '13 for $17,500. Repairs under warranty approx. $3.5k (20% of purchase price) (in year 2 of CPO they replaced struts, in year 3 they did cam work in engine).
A couple things - 1) I still have and daily the IS250. So even if there was no warranty work, I have had the car for 8 years and only paid $17.5k for it. That doesn't seem like a terrible deal. Same is true of that RX - if the hurricane didn't total it I am sure we would have gotten many more years more out of it. How much less could I really have gotten either of those cars for? So as long as you negotiate, I think it can easily be worth it to get the CPO. One thing to note is that Lexus moved the program from 3 years 100k max total miles on car, to 2 years unlim miles. I had most of my repairs in year 9 of the car (year 3 for me). My take is that if you can get a good deal, the CPO can be good, esp if you are thinking of buying one on the older side of the program. It is sort of like a midpoint of buying between New and standard used. You get some of the new car experience and benefits, but you also get a used car, and all that comes with that. Many people here go to a corner solution - either Used or New, but for some of us we don't want to paint ourselves in a corner .
But regardless, look at both CPO and regular used inventory out there, and maybe even New given that used have gone up so much more than New, and see what the price differences are. That way you can try to price what the marginal cost will be of CPO, New, and Used and then you can then assess if the trade offs are worth it to you.
Opinions vary, with most here, I think, will suggest it is not worth the money. I am not of that opinion. I am not sure if it is important per se, but since everything is negotiable (well, perhaps not at the moment), then depending on the deal, it could be worth it to you, or not, as long as you are aware of what you are and are not getting. You are still getting a used car. It isn't new. So you still need to check it's history etc before you buy. They are allowed to sell CPO that have been in an accident - so you do need to review the car as used - esp for rust, body damage etc.
The benefits, as I see it, are:
1) Similar experience as new car buying - our CPO GX was prepped by the dealer and had the big red bow on it etc. Not a big deal to me, but my wife really liked that.
2) Two years maintenance - this really means two oil changes and tire rotations. Not a ton, but it isn't nothing - prob worth a couple hundred bucks. Also gives a cadence to have the dealership deal with any issues that crop up because you have ...
3) a 2 year unlimited mile factory warranty. Not exactly the same as the new car warranty but covers a ton. How much you value this is up to you. There are many who place near zero value on this here ("Dave Ramsey says you are throwing your money away!") - but I am not one of them. The value of the CPO warranty, esp for a CPO car that is outside of the factory powertrain (so say you buy a 6 yo car) is that I don't have to worry about anything with the car for a couple of years. Yes these are reliable cars on average. But you are still buying a used car. So THIS particular car, unlike new cars that have essentially the exact same history before they come to you, along with being older also has a much higher variance in possible histories. Higher variance often means higher risk.
My personal experience, and this informs my opinion, but of course is only antidotal, has been the following:
A) '02 CPO RX300 bought in '08 for $15,500. Repairs under warranty approx. $4k (25% of purchase price) (in year 3 of CPO they replaced a slipping transmission).
B) '07 CPO IS250 bought in '13 for $17,500. Repairs under warranty approx. $3.5k (20% of purchase price) (in year 2 of CPO they replaced struts, in year 3 they did cam work in engine).
A couple things - 1) I still have and daily the IS250. So even if there was no warranty work, I have had the car for 8 years and only paid $17.5k for it. That doesn't seem like a terrible deal. Same is true of that RX - if the hurricane didn't total it I am sure we would have gotten many more years more out of it. How much less could I really have gotten either of those cars for? So as long as you negotiate, I think it can easily be worth it to get the CPO. One thing to note is that Lexus moved the program from 3 years 100k max total miles on car, to 2 years unlim miles. I had most of my repairs in year 9 of the car (year 3 for me). My take is that if you can get a good deal, the CPO can be good, esp if you are thinking of buying one on the older side of the program. It is sort of like a midpoint of buying between New and standard used. You get some of the new car experience and benefits, but you also get a used car, and all that comes with that. Many people here go to a corner solution - either Used or New, but for some of us we don't want to paint ourselves in a corner .
But regardless, look at both CPO and regular used inventory out there, and maybe even New given that used have gone up so much more than New, and see what the price differences are. That way you can try to price what the marginal cost will be of CPO, New, and Used and then you can then assess if the trade offs are worth it to you.
Thank you for the wonderful response.
I greatly appreciate the thoughtfulness of your response.
A 3yr old GX is abt 10 to 12k away from a new one at msrp with a comparable trim level. Might be better off to get a new one if u plan on keeping it foreva.
As a member of this forum, I'd like to get your thoughts on jumping off and doing something possibly crazy... an '05 GX470 project car I found.
See my post in the other 1st Gen Forum here: https://www.clublexus.com/forums/gx-...l#post11175127
What do you think? Possible pitfalls? (I know that's asking a lot because you can't see it or may not have info / experience with 1st Gen GX470s)
I'm just considering it... I need to start my research and determine which motor, trans, all the skinny on it...
Saw this one online and it is the totally loaded model with just over 100k miles - sport wheels and grill. Price is OK but they are hard to find this clean and well equipped:
Saw this one online and it is the totally loaded model with just over 100k miles - sport wheels and grill. Price is OK but they are hard to find this clean and well equipped:
Seriously considering a 2015 GX 460 Luxury edition with 93k for $33,900. Two owners & 23 service records. Appears to be very well maintained at Lexus dealer.
This is for my wife who currently has a 2017 Toyota Highlander Limited with 85k on it. Don’t usually trade, but they will do 28k on the Highlander for trade value.
So, I pay out 6k for a vehicle 2yrs older with a few more miles.
MSRP New:
2015 GX $63,500
2017 Highlander $43,000
Seems like a fair deal to me in today’s market. I like to keep my vehicle’s for a long time.
Not sure which vehicle will last longer, maybe a wash.
Am I crazy for considering this deal?
I am not that well versed with this model/engine on the GX. Anything major I need to take into consideration other than the GX requiring premium fuel?
Seriously considering a 2015 GX 460 Luxury edition with 93k for $33,900. Two owners & 23 service records. Appears to be very well maintained at Lexus dealer.
This is for my wife who currently has a 2017 Toyota Highlander Limited with 85k on it. Don’t usually trade, but they will do 28k on the Highlander for trade value.
So, I pay out 6k for a vehicle 2yrs older with a few more miles.
MSRP New:
2015 GX $63,500
2017 Highlander $43,000
Seems like a fair deal to me in today’s market. I like to keep my vehicle’s for a long time.
Not sure which vehicle will last longer, maybe a wash.
Am I crazy for considering this deal?
I am not that well versed with this model/engine on the GX. Anything major I need to take into consideration other than the GX requiring premium fuel?
Does wife not love the Highlander and really desires the GX? If there isn't a real reason why bother? After tax etc. hard to see it just being a financial reason. FWIW KBB has private party sale for highlander Lmt at $30k.
In today's market, the price for that GX seems reasonable. I paid 30K at the end of 2020 for a 2015 premium trim with less miles (68k). At the end of the day, you will be buying a 7 year old car for over $30k, which would be unthinkable for me even a few years ago!
Why do you want a GX? what boxes does it tick that the highlander does not? If you don't plan to offroad, then I would stick with the highlander. The GX is a thirsty beast that has old-school tech and truck-like road manners. Your wife may not appreciate that after driving a highlander.
Does wife not love the Highlander and really desires the GX? If there isn't a real reason why bother? After tax etc. hard to see it just being a financial reason. FWIW KBB has private party sale for highlander Lmt at $30k.
The wife likes the Highlander, loves the GX interior color luxury etc.
She will not be off roading with it.
Thanks for the advice, think your spot on.
In today's market, the price for that GX seems reasonable. I paid 30K at the end of 2020 for a 2015 premium trim with less miles (68k). At the end of the day, you will be buying a 7 year old car for over $30k, which would be unthinkable for me even a few years ago!
Why do you want a GX? what boxes does it tick that the highlander does not? If you don't plan to offroad, then I would stick with the highlander. The GX is a thirsty beast that has old-school tech and truck-like road manners. Your wife may not appreciate that after driving a highlander.
”Thirsty beast”. I needed to hear that! This is a total want, not need. Highlander gets 20-23 mpg consistently on regular gas. No off-road plans for it either. GX is just plush & felt better as she put it. Crazy market right now & may do way better in a year from now.
Thanks for the advice!
”Thirsty beast”. I needed to hear that! This is a total want, not need. Highlander gets 20-23 mpg consistently on regular gas. No off-road plans for it either. GX is just plush & felt better as she put it. Crazy market right now & may do way better in a year from now.
Thanks for the advice!
I was happy getting 19 on the highway last week, and that's driving very conservatively! My around town average is about 15. Note my lift and larger tires obviously don't help here. In stock form I averaged around 18.
11-21-21 | 07:33 AM
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