I am using this as an example. It was probably a lease return with a residual of maybe $24k. Priced to sell for about $30k. What do you think is a good deal ? $27k ? Thanks

https://www.lexusofarlington.com/cer...ec131f175f.htm

 

I paid 37k for loaded 2017 fsport that listed for 46k back in 2017. so take those numbers for value imo.

 

Thanks. On new you can always get a good deal if you like to haggle like me. At or little below invoice is pretty much given. Here in IL we can get that anytime. During year end a lot below invoice. However used/cpo is a whole different game since most of that inventory are lease returns/trade in's where we can only guess what it cost the dealer. For example carfax sometimes will show bought at auction and then prepped and sold as cpo..

 

Ask for invoice then.
If they do not show it to you, just don't buy from them. Tell them firmly that you will only consider purchase after you see the invoice.
You buyers in IL spoiled dealers, now you have to pay grossly for it.

 

Targeting a used vehicle with such a high 3yr residual is great to lease / purchase but the 2nd buyer is always going to take the larger hit on overall cost of ownership and depreciation over the next three years...
Yes, I would ask for the original invoice / msrp to determine fair value with a 60% residual but personally I would look to a lease on a new 2019my if your looking to be within a monthly budget of a 2016 purchase... you have to think, this 2016my is going to be 4yrs old pretty darn soon and out of warranty etc... new car incentive are good and they are already wanting to clear out the 2019's so might be able to get a pretty good deal... plus rates are likely going to be better on a new vehicle v used...
just my 2 cents...

 

Good points. It's not a simple decision. (buy new vs used).
Currently here in IL with premium package new NX base is about $35,000 + taxes (includes the $2k MFR rebate until June 2.)
So if we can get a clean , low miles 2016/2017 lease return for $10k less say $26k + taxes then it is a good deal I think since some of us like the 2015/2016 base 18" split fork gun metal wheels compared to 2017 to 2019 18" wheels. Also pre collision that cannot be permanently disabled and is std on new is another pain for some aggressive tailgating drivers who hate this feature. When 2nd owner trades in after 3 years it will be a 7 to 8 year old car with about 70k miles (end of power train and CPO warranty) and a trade in value of about $10k to $15k. In all 3 cases cases (buy a lease return or buy new or lease new) you paid the same amount in 3 years. About $15k to $16k.

 

$35k new? Is that for a FWD? I have no issues with the pre-collision on my 2019. It can be adjusted.

Generally speaking you’ll always pay less out of pocket buying used and more by leasing. Buying used you’ll pay less taxes and registration depending on your state.

 

I've found that if you have several Lexus dealers in an area and it's the end of the month, you'll have your best chance at negotiating a good deal. You do have to be willing to walk away as part of your strategy. Unfortunately, I don't know where to find records of actual sales price vs asking price for the past month. If anyone knows where to find that info, please share. My buddy is a used car dealer and shared his Manheim Car Auction access with me. That will give you records of actual auction sales along with condition of car. Maybe a used car dealer will do a search and printout for you, for a fee, of your year and model with a condition rating of 4 or higher.

 

This may help:
https://www.edmunds.com/tmv.html

Our TMV figures are based on the actual sales of other cars of its kind in your region and then adjusted for further accuracy using calculations designed by the mathematicians at Edmunds.com.