15951

My IS350 sits a lot, and isn't being driven. I have it on leasetrader, but thought I'd stop by the selling dealer to see if they'd be interested in buying it back. It's a 2006 with a payoff in the $29k range.

I walked into the dealer, and asked for the buyer. While I was waiting, I spotted a red 2006 w/13k miles (mine has less than 10k) being sold for $36,500, with zero options. No nav, no sport package, zilch - maybe HIDs, but I didn't check. Based on that inflated (ridiculous!) price, I thought I'd be able to break even on buyout/payoff.

They took a look at my car, which is immaculate, and gave me a best offer of $25.5k. I took a look at Edmunds TMV, and my car would go around $32-33k CPO. I guess they don't even take these cars in unless they can make an absolute killing on the sale.

Just FYI for those of you considering trade in. Don't do it! I'll be much better off in private sale or lease trade.

darkdream

It is pretty much expected in this economy... if they buyout your lease, chances are it will have to sit on the lot or they will have to discount it to the point they barely break even or make a loss... and maybe they mark up the price on the used car so when a potential buyer comes they will discount it many thousands to make it seem like they got a killer deal

EJC

That's the way too many dealers work.

A couple of years ago I toyed with the idea of trading my '02 ES. The dealernew the car and had done all maintenance on the car. My car was immaculate and had very low miles.

They offered me below book trade in. Now they're wondering why I modified the car with Big Brakes and coil-overs, instead of trading it in.

BTW, this was how they treated a customer of 20yrs. Our first Lexus was an ES250.

15951

That's absolutely why they mark them up, but they have to be driving away educated buyers in the process. If I'm a used car buyer and walk in to see that inflated starting point for negotiations, I'm going home and typing in ebaymotors or cars.com.

By the way, don't be so sure about those deep discounts on sales. At least in S. Florida, the Lexus dealer lots are pretty busy these days. I know December sucked for Toyota's new sales, but I wouldn't be surprised to learn that they're still doing well on used. They make a better margin on CPO cars, anyway.

IS-SV

Internet pricing is usually somewhat closer to reality. Window price is often a joke, generally ignored.

blklexo818

iTrader: (1)

thats how dealers work. I could of easily sold my 2006 RSX-S with low miles and immaculate condition for 23K, damn car kept its value cause it was discontinued. I had only 10K left on my RSX's loan, when I traded it they gave me $17,000 They took the down for my down payment and cut me a check for the rest. aha.

Fizzboy7

That's the case with most dealers and has been for decades. They have traditionlly never given anything for trades. Always best selling it privately.

Jefe's IS

Uh, dealers buy wholesale.

Evitzee

This is no revelation. A dealer will give you as little as possible for the car as he has to buy it, finance it, recondition it, advertise it and sell it at a profit. This all costs money. This is why it is better to sell it yourself, you'll almost always get more money. It's worth the small hassle. That's why kbb.com shows trade value, retail value, and value between two parties.

15951

I've played the game before, and understand the rules. However, I was a little surprised at getting lowballed to that degree, as my IS350 is in better condition than many new cars on the lot. It's completely swirl free (perfect) with 9,600 miles, and they could have slapped a sticker on it and put it on the lot that day. As a matter of fact, someone was asking about it while we were negotiating the sale, and I had only been there 10 minutes.

My point is, the investment would have been very minimal for them to make a few thousand $, but oh well.

I was just tire kicking, anyway. I have it listed elsewhere. Photos are here if anyone's interested: http://www.leasetrader.com/2006_Lexu...7.xhtml#photos