socalJD

So if I'm doing the math correctly, you got apprx $11k off of Msrp ?
I figure that is almost 1k below the dealer's net cost, if you factor in holdback.
I know most dealers will sell at 'invoice', since they pocket the holdback, but your dealer gave back the holdback and another 1k to boot. I am not aware of any marketing support or dealer incentives from the factory, so this deal was basically a loss-leader for the dealer. Outstanding deal !

inthemix

Your math is dead-on.

I believe because my trade in was in excellent shape and because they needed to sell the 2006 LS models to increase their allocation of 2007 models (which they will be able to sell at a non-discounted price), they felt comfortable that a profit would be made off of the sell of my trade in and the hugh profit off of the sell on the 2007 LS that would be allocated to them.

This is also my 3rd Lexus that I have purchased from this dealership and I have provided many referrals so they owe me a little goodwill

Nauticalx

Was this dealer JM Lexus?

mikemareen

I'd like to pick up a 2001 LS430 in a few years, the price should drastically drop once the 2007+ start to hit the roads.

socalJD

I'm not so sure about the prices dropping for the 3rd gen LS. It's a dramatic redesign for the new '07, compared to the last 3 gens that looked very similar in design. People who like the old body style will still want the 3rd gen. Also, the '07 is moving upscale in price - base will be at least 10% higher for all models, plus there's a long wheelbase and a hybrid. People who can't afford or are not willing to drop the extra coin on the new '07 will migrate to late model 3rd gens. Because of all this, I think the 3rd gen will hold it's resale value, in fact it's a solid bargain right now if you pick up a new '06 at or under invoice (apprx 10k off msrp).

bkw

Picked up an 06 Cyprus/Cashmere with Modern Luxury plus 18" wheels, all weather mats, satellite radio, 50% tint, etc for an amazing deal last week. Walked into the dealership to speak to someone about the upcoming 460 and the LF-A, and walked out with a very attractive 27mo lease on a brand new 06 LS430.

So far so good.. For the luxury and touring factor, the LS is a great car, but I feel that that our 05 RL is more technologically advanced, and is more fun to drive. Anyways, it'll fit in just fine in our stable for the next two years as the bugs in the 460 get worked out.

Great car!

dc661

I'm looking for an LS430 too. Did you get a quote on a purchase as well? If so, what did they offer you on a purchase. I can't lease due to mileage. Also, what dealer is this in NY? Thanks -

Broker404

What's it matter? It doesn't matter what class it's in or anything. Anytime a new generation of a car is released, the last one takes a huge hit in depreciation. You've gotta be kidding saying that the 06 LS won't suffer from the new LS, similar to how the 05 GS will suffer from the same situiaton.

Broker404

You can't be serious. The new body style ES is a completely different car from the last one. It's not just styling either, the entire car is different from the ground up. With this mindset, if you could find one, you might as well but a 1990 ES250 with 0 miles on it if there was enough discounted from it's new MSRP price.

daryll40

An LS430 at clear out prices might be a good deal.

What you "depreciations gurus" are missing is the time value of money. If the current car clears out at $53,000 and a similar '07 will cost (full sticker) $65,000...you not only have $12,000 more upfront, but you have additional sales tax PLUS lost interest/investment earnings on that extra $12,000 for the 3-4-5 years that you keep the car.

Nauticalx

That additional tax/interest/investment cost and lost opportunity is largely regained by the difference in sale price once you sell an 07 on the market vs selling an 06 on the market in say 2011. Unless you have a venture capitalist type exorbitant return or you run a shady usury lending shop, the $12,000 difference say will return say $8,000 on the higher resale value, maybe even more since the new models are higher priced and thus will have higher resale values added to the fact that its a completely new bodystyle. Last year model of old body style TANKS in value because there must be a big incentive in the resale market for a used car buyer to purchase a 06 vs an 07 money wise. If there wasn't, 06s would build up on used car lots. The difference in cost is fair given thses considerations, added to the fact that you drive the latest and greatest instead of an outdated model you just paid a huge chunk of change for. The added cost is nominal given the class of vehicle you are buying and the range of expenditure you are considering.

daryll40

I went back and ran the numbers, using Kelley Blue Book, for year 2000 LS400 and year 2001 LS430 cars, both in the same "Good" condition and both with 75,000 miles. YOU ARE RIGHT! I was trying to refute you, but the difference in resale value of the new car versus the old bodystyle more than offsets what was probably the difference in price at the time. At the very least it's a draw...and for a draw you want the new bodystyle.

I was surprised actually. I figured that the savings of the firesale on the old car vs paying full sticker juice on the new car would make the old car a bargain for people not caring about the latest and greatest. But you were right and I was wrong! And if you wait a year or so until the "froth" is off of the LS460 market, the equation points to the new car even more strongly.

When I'm right I'll scream it to the mountains. But when I'm wrong, I also fess up!

nosyajg

it takes a real man to do that...

Nauticalx

Thanks! I appreciate you being honest in your findings which corroberated my post. Now hopefully the Moderator's are watching and impressed in the event they need another mod who knows a little about what he's talking about.

Aska888

I just got my 06 LS430 New with Modern Lux pkg for $51K plus tax and fee. Out the door price is about $56K. I guess it is at least $20K lower than the 07 LS460 not counting the additional tax$ I saved. Like some of you said, if I keep the car for 4-5 years, I really care less about the depreciation.