tracerit

I'm a few more months closer to getting an IS350 and I was looking at the prices of used 2006 IS350s on autotrader and kbb. They seem to be floating around 33-34k! This is for a 2 year old car! A new IS350 is only 4-5k more. I can save that much in 4 months just to get that new car feeling


I also have a question. Say I buy a new IS350 for 38k, tax and title will add say 3500. Interest over 5 years is say 5000. If I keep the car for only 2 years, and sell it private party, am I going to lose the 3500 in tax? As for the interest, I only pay for the interest during the time I owned the car right, so I won't be paying interest on the last 3 years of my loan.

omgitsroy

iTrader: (1)

umm... this is not an investment... jus buy it and drive it like it's stolen... enjoy the car...

Zanorath

The prices on KBB and NADA are holding their values extremely well, I've had the car for 15 months now, and according to those guides the car has only depreciated by 3k. Realistically though I'm sure they're selling for less than blue book values.

You do lose the tax though so that 4k is simply gone if you sell it. If you trade it in that amount is deducted from the taxes, though trading in would be horrible in terms of value. I'm sure since dealerships can do it that there is some way you can put money from a car sale into a car purchase and keep the taxes, though I'm not an accountant, so I'm not sure how that would be done.

Edit: As for interest, you only pay interest for what you owe. So once you sell and pay off the loan you no longer pay interest. Some loans have a requirement where you *can't* pay them off early so that you're charged that interest, but that'd be a very bad deal, you can easily find one without that clause.

Kurtz

iTrader: (1)

The biggest reason I'm buying a brand new IS was that the used ones aren't worth buying, based on how well they hold value.

tmf2004

iTrader: (15)

I was just on autotader and ebay last night looking at 250's and 350's and its pretty amazing how well there holding there value...I saw some on ebay (250's) with already 20k miles and there still around 30k.. For a few grand more you can get a new one.. Also found a few 350's for around 34-35k like you said.. Is it worth buying new since the used prices are so close? or just the opposite? Thanks

Tony

Evitzee

Considering the relative low volume of IS350's being made (less than 20% of total IS production) it is not surprising that, a. discounts on NEW 350's is not huge (when compared to the 250), and, b. resale values on the secondary market are holding up well. It is really a win-win situation for everybody. Lexus makes maximum value and the buyer's total cost of owning the vehicle is lower than normal. That is a much better situation than what you typically see with a Big 3 branded vehicle.

Bichon

Those of use that bought our IS350s in the fall of '05 didn't enjoy the same deep discounts that have been available more recently. In those days, a discount of $2,000 off MSRP would have been considered a smokin' deal, and many people paid full MSRP. I'm sure that if I was to trade my car, I'd lose a heck of a lot more than $4-5k.

mir

Same here. When I bought mine couple of months ago, I did extensive research and was surprised to find that 1 year old 10k+ IS was selling for as much or more as the new one. In fact, the dealer I bought from mine had exact same car in 2006 model and he was asking for 200$ more. I guess I could get him to sell it for 2k less but it was not worth it.

BTW cars are not investment. If you look at it like investments and trying to come up on top, you will be up for disappointment. Buy it because you want to. If you *need* to, you can always get a cheaper Yaris or something which is more practical financially.

gsrthomas

iTrader: (1)

IS250's are holding up well too.

According to kbb for a private party sale with area code 92870.

I bought my car almost a year ago for $29,436 (before taxes).

kbb valued my car at:
Excellent $33,855
Good $32,030

Of course my car is in excellent condition.

According to kbb I can probably sell my car and make a 1k profit??? Lets see an IS350 beat that

MJB_LEX

Umm... When I bought my '06 IS250, the discount offered on it versus an IS350 was exactly the same. So, really, I don't know what you are talking about. Maybe its a regional thing.

jdanon

There isn't much discounting on the 350. In fact getting one around here is q uite difficult, let alone one you actually want and for a deep discount. I think if you look nationally the average discount on the 350 on a percentage basis is a lot less than the 250. Most of us trying to get an IS350 have probably met the dealers' resistance to go below the mid between invoice and MSRP. 250s have been blowing out at invoice or just under in some places.

clerk

I can confirm this to be the case. After a month of serious looking, researching and haggling, I just purchased an 06 IS350 with 11k miles for $32,500 from a private party. The vast majority of the dealers are asking $33 - 34k for used 06's without nav. and 35k+ for cars with nav. My initial target price was $31,000 but I couldn't get anywhere near that. 06's are wholesaling for $31,000 right now.

As for new, the best price I got was 3k off a fully-loaded 07 and $1700 off an 07 with premium and 18"'s only. When I asked for more the dealers laughed saying they do not discount IS350's. Several dealers did not even resond to my requests for a discount.

In the end, I saved about 5 - 6k off new which was meaningful to me. Hopefully, they continue to hold their value this well going forward. Loving the car by the way.

Pineapple

If you look at the 1 gen IS they still hold there value quite well (relative to other cars) and the 2IS seems to be following the same pattern.

jdanon

Helping it is the rarity of the car. There aren't a million of them out there yet so that is keeping the price up since there are more buyers than sellers. The 2IS 350 is hard to come by period especially if you live north of the Mason-Dixon line. If you can get $2k off MSRP that would be a good deal.

VikH

iTrader: (5)

According to Forbes the IS350 makes the top 10 lux cars with highest resale value:

http://www.forbesautos.com/advice/to...isidual_values

Here is the list:

2007 Honda Accord Hybrid
MSRP: $31,090
Residual Value After Five Years: 44 percent*

2007 BMW Alpina B7
MSRP: $115,000
Residual Value After Five Years: 44 percent*

2007 Toyota Avalon XLS
MSRP: $31,325
Residual Value After Five Years: 46 percent*

2007 Lexus IS 350
MSRP: $35,705
Residual Value After Five Years: 46 percent*

2007 Infiniti M45
MSRP: $49,100
Residual Value After Five Years: 46 percent*

2007 BMW 650i Convertible
MSRP: $81,700
Residual Value After Five Years: 46 percent*

2007 Acura MDX AWD
MSRP: $39,995
Residual Value After Five Years: 46 percent*

2007 Mercedes-Benz G55 AMG
MSRP: $107,500
Residual Value After Five Years: 47 percent*

2007 Lexus GS 450h
MSRP: $54,900
Residual Value After Five Years: 47 percent*

2007 Chevrolet Corvette Coupe
MSRP: $44,250
Residual Value After Five Years: 47 percent*