How bad is the resale value going to drop when the 09s come out in a year and a half?
11-26-06, 07:42 PM
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How bad is the resale value going to drop when the 09s come out in a year and a half?
http://www.edmunds.com/insideline/do...ticleId=116536
It's going to be a completely different car. Sportier and much bigger. Are some people going to like the fact that the old 350 is smaller or will it look as bad as the old Acura MDX compared to the new one? The fact that this car has looked the same for such a long time is part of my hesitation in buying.
Also, if you go to the dealership they tell you that they can't hold on to the 350 but online I'm reading about people getting the '07 at invoice or less because sales are actually MUCH slower (supposedly on account of the 08's coming out in early Spring like last year).
It's going to be a completely different car. Sportier and much bigger. Are some people going to like the fact that the old 350 is smaller or will it look as bad as the old Acura MDX compared to the new one? The fact that this car has looked the same for such a long time is part of my hesitation in buying.
Also, if you go to the dealership they tell you that they can't hold on to the 350 but online I'm reading about people getting the '07 at invoice or less because sales are actually MUCH slower (supposedly on account of the 08's coming out in early Spring like last year).
11-26-06, 08:51 PM
#3
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If you can wait for the new model, then you get to chose .. newmodel at the new price or the old model with adjusted price ....
If you cant wait, then make an offer that you feel is right. Let the dealership accept or refuse it.
My understanding is that Lexus dealers do not sell above invoice. So it is always at invoice or with some discount.
Salim
Edit ... It is MSRP and not invoice.
Thanks ck6speed.
Salim
If you cant wait, then make an offer that you feel is right. Let the dealership accept or refuse it.
My understanding is that Lexus dealers do not sell above invoice. So it is always at invoice or with some discount.
Salim
Edit ... It is MSRP and not invoice.
Thanks ck6speed.
Salim
Last edited by salimshah; 11-27-06 at 07:53 AM. Reason: Correction
11-26-06, 09:40 PM
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If you can wait for the new model, then you get to chose .. newmodel at the new price or the old model with adjusted price ....
If you cant wait, then make an offer that you feel is right. Let the dealership accept or refuse it.
My understanding is that Lexus dealers do not sell above invoice. So it is always at invoice or with some discount.
Salim
If you cant wait, then make an offer that you feel is right. Let the dealership accept or refuse it.
My understanding is that Lexus dealers do not sell above invoice. So it is always at invoice or with some discount.
Salim
11-26-06, 09:42 PM
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11-27-06, 01:16 AM
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MSRP is typically about 5-7K more than Invoice on an Lexus.As for Lexus no selling above MSRP that may or may not be true depending on how you look at it. Often dealers will sell the car with extra dealer installed items at inflated prices. MSRP may be the same, but unless you special order, often you can't buy the car without some of these options on the car already. Of course, this is dealer dependent and some dealers wont do this while other will.
11-27-06, 05:06 AM
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11-27-06, 07:22 AM
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My wife and I were in the same boat as you. We were wondering if we should wait for the '09 or not. Here were my thoughts:
1. It'll probably be about 2 years before the '09 will come out. It's a brand new model and often times the brand new models come out in November or so. Two years is a long time to wait!
2. Do you really want to buy the vehicle right when it comes out? Here are some problems you will face.
a. You will pay MSRP or possibly even higher. The demand will be high and the supply will be low. Forget about invoice for at least 6 months to a year after it comes out!
b. First year models will have their glitches. Even though Lexus is a very reliable brand, there will be some kinks, bugs and minor things (and possibly major things) that will be there and will be fixed for the second model year.
So basically you will pay a lot for a brand new model that will have it's first year issues. If you ask me, it's much smarter to wait till second model year. Waiting gets you a more solid vehicle at a lower price! So now you're talking 3 years wait time!
The other option is to get an RX350 now and enjoy it. The 350 has a lot of upgrades including hp from the 330 and it really is one of the best SUVs out on the market today. As you mentioned, you will not pay the premium for the 350 if you buy now and most likely you will get a great deal. All I can say is we just bought the 350 and it was only like 3-4k more than a Nissan Murano comparably equipped! Now that's a good deal.
You never know, there may be some things you don't like about the new model. Perhaps it's just too big. Perhaps the fuel economy is compromised from the extra weight. Perhaps there may be something you don't like about the styling. I always knew people that liked the RX300 styling better than the RX330 when it came out.
As for depreciation when the new one comes out, I don't think the 330/350 will take an 'extra' hit when the '09 comes out. Lexus holds it's value and even the RX300 didn't drop much when the RX330 came out. There are always people looking to buy used and a bit cheaper and don't care about the latest most expensive thing out.
I say buy the 350, it's an awesome ride. Get a really nice deal on it. It's a very solid vehicle. As for styling, do some minor things like get some aftermarket wheels and maybe some springs and you'll be surprised how awesome the RX will look. Just take a look at CK6Speed's RX
When three years comes around, you can make an educated decision on whether to buy the new '09 or '10.
Financially, you should factor in that you will probably pick up an '07 RX350 for $10k less than the '09 RX comparably equipped (and this is due to the usual new model price increase and first year demand and markup). Add to that figure the amount you would save buying the '10 model and I would say estimate $3-4k since price will be back down and you will be able to negotiate a better deal on '10 model. So financially it's actually not as bad as you think to buy now and enjoy!
That's my opinion!
Kan-O-Z
1. It'll probably be about 2 years before the '09 will come out. It's a brand new model and often times the brand new models come out in November or so. Two years is a long time to wait!
2. Do you really want to buy the vehicle right when it comes out? Here are some problems you will face.
a. You will pay MSRP or possibly even higher. The demand will be high and the supply will be low. Forget about invoice for at least 6 months to a year after it comes out!
b. First year models will have their glitches. Even though Lexus is a very reliable brand, there will be some kinks, bugs and minor things (and possibly major things) that will be there and will be fixed for the second model year.
So basically you will pay a lot for a brand new model that will have it's first year issues. If you ask me, it's much smarter to wait till second model year. Waiting gets you a more solid vehicle at a lower price! So now you're talking 3 years wait time!
The other option is to get an RX350 now and enjoy it. The 350 has a lot of upgrades including hp from the 330 and it really is one of the best SUVs out on the market today. As you mentioned, you will not pay the premium for the 350 if you buy now and most likely you will get a great deal. All I can say is we just bought the 350 and it was only like 3-4k more than a Nissan Murano comparably equipped! Now that's a good deal.
You never know, there may be some things you don't like about the new model. Perhaps it's just too big. Perhaps the fuel economy is compromised from the extra weight. Perhaps there may be something you don't like about the styling. I always knew people that liked the RX300 styling better than the RX330 when it came out.
As for depreciation when the new one comes out, I don't think the 330/350 will take an 'extra' hit when the '09 comes out. Lexus holds it's value and even the RX300 didn't drop much when the RX330 came out. There are always people looking to buy used and a bit cheaper and don't care about the latest most expensive thing out.
I say buy the 350, it's an awesome ride. Get a really nice deal on it. It's a very solid vehicle. As for styling, do some minor things like get some aftermarket wheels and maybe some springs and you'll be surprised how awesome the RX will look. Just take a look at CK6Speed's RX
When three years comes around, you can make an educated decision on whether to buy the new '09 or '10.Financially, you should factor in that you will probably pick up an '07 RX350 for $10k less than the '09 RX comparably equipped (and this is due to the usual new model price increase and first year demand and markup). Add to that figure the amount you would save buying the '10 model and I would say estimate $3-4k since price will be back down and you will be able to negotiate a better deal on '10 model. So financially it's actually not as bad as you think to buy now and enjoy!
That's my opinion!
Kan-O-Z
11-27-06, 07:51 AM
#9
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I think you are mistaking MSRP and Invoice. If Lexus only sold at Invoice or below, Toyota wouldn't be as profitable as they are totay MSRP is typically about 5-7K more than Invoice on an Lexus.
As for Lexus no selling above MSRP that may or may not be true depending on how you look at it. Often dealers will sell the car with extra dealer installed items at inflated prices. MSRP may be the same, but unless you special order, often you can't buy the car without some of these options on the car already. Of course, this is dealer dependent and some dealers wont do this while other will.
MSRP is typically about 5-7K more than Invoice on an Lexus.As for Lexus no selling above MSRP that may or may not be true depending on how you look at it. Often dealers will sell the car with extra dealer installed items at inflated prices. MSRP may be the same, but unless you special order, often you can't buy the car without some of these options on the car already. Of course, this is dealer dependent and some dealers wont do this while other will.
You are right!
It is MSRP.
New models (which are generally in high demand) are gauranteed to be at MSRP.
One more factor to keep in mind for new models is ... It takes almost a year before all kinks and wrinkles are removed. Lexus has always been good about addressing them with TSBs.
Salim
11-27-06, 07:59 AM
#10
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As for depreciation when the new one comes out, I don't think the 330/350 will take an 'extra' hit when the '09 comes out. Lexus holds it's value and even the RX300 didn't drop much when the RX330 came out. There are always people looking to buy used and a bit cheaper and don't care about the latest most expensive thing out.
Kan-O-Z
Kan-O-Z
1. Exclusivity. [One word says it all]
2. When Lexus introduced the 2nd gen GS, the newer models were lower in price than 1st gen GS and had more to offer. That intro really torpedoed 1st gen resale.
Salim
11-27-06, 10:05 AM
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Perfect example is the new MDX. We bought our RX for about $6-8k cheaper than the new MDX just because they are not negotiating.
Also, I think what you are talking about would come into effect if you bought the older model just months before the new one was released. Once a car is 2-3 years old, I don't think the price of the new RX is going to drive down the RX that are 2-3 years old since they have already lost about $15k to depreciation. So what I am saying is that it's good to buy now (we are still in '06). Maybe not so good to buy in mid '08.
Kan-O-Z
11-27-06, 02:39 PM
#12
ClubLexus provides all Toyota vehicle YTD and monthly sales vs last year on a monthly basis. Here it is for November:
https://www.clublexus.com/index.php?...444&Itemid=183
The RX is running about 2% below last year (a bit surprising, as the 350 came out in the beginning of this year)
Resale values are hard to predict. The real question are you able to wait, and do you think you will like the redesign better? Resale values on cars and houses can be important, but keep in mind that you also have to live in them.
https://www.clublexus.com/index.php?...444&Itemid=183
The RX is running about 2% below last year (a bit surprising, as the 350 came out in the beginning of this year)
Resale values are hard to predict. The real question are you able to wait, and do you think you will like the redesign better? Resale values on cars and houses can be important, but keep in mind that you also have to live in them.
11-27-06, 04:47 PM
#13
Lexus is kind of odd with this. Often they release the new model early March/April, or sometime well before the typical September/November release dates of before. This is true with the 06 GS, the RX, and even IS. I bought our newly designed 04 RX330 in April 2003. Kind of cool to say you have an 04 that early in the year, but sucks for mileage as we already had about 12K miles at the end of 03, and at the end of 04 we had nearly 30K miles already.
11-28-06, 05:44 AM
#14
Out of Warranty
Kan-O-Z and CK make good points. I also stretched my lease on a RX 300 in order to get a RX 330, and wound up with an early model. I found a couple of drawbacks to this strategy, in addition to those indicated:
- Limited availability of options. Most options will be packaged in groups. Want a nav system, be prepared to pay for the ML sound system as well. Want an AWD model, be prepared to forgo most other options. Early adopters will probably have to special order to get selected features - and accept a 90-120 day delay. Some options get delayed: I wanted the radar cruise control, but it was temporarily withdrawn early in the model run due to legal complications. Some options will get killed off (notably that huge moonroof).
- Accept the fact that you will probably have a few early-production bugs. Nothing critical, and your dealer will usually handle the fixes without complaint because it is a "factory defect". You are going to be a "beta tester", like it or not. Fortunately Lexus has few teething problems, but it is normal to expect them in a new model.
- Premium price. Although many dealers still sell at or near MSRP, there is a temptation as mentioned to tack on extras to inflate the final cost. When demand is high, some will take advantage.
Last edited by Lil4X; 11-28-06 at 05:51 AM.
11-28-06, 04:21 PM
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My wife and I were in the same boat as you. We were wondering if we should wait for the '09 or not. Here were my thoughts:
1. It'll probably be about 2 years before the '09 will come out. It's a brand new model and often times the brand new models come out in November or so. Two years is a long time to wait!
2. Do you really want to buy the vehicle right when it comes out? Here are some problems you will face.
a. You will pay MSRP or possibly even higher. The demand will be high and the supply will be low. Forget about invoice for at least 6 months to a year after it comes out!
b. First year models will have their glitches. Even though Lexus is a very reliable brand, there will be some kinks, bugs and minor things (and possibly major things) that will be there and will be fixed for the second model year.
So basically you will pay a lot for a brand new model that will have it's first year issues. If you ask me, it's much smarter to wait till second model year. Waiting gets you a more solid vehicle at a lower price! So now you're talking 3 years wait time!
The other option is to get an RX350 now and enjoy it. The 350 has a lot of upgrades including hp from the 330 and it really is one of the best SUVs out on the market today. As you mentioned, you will not pay the premium for the 350 if you buy now and most likely you will get a great deal. All I can say is we just bought the 350 and it was only like 3-4k more than a Nissan Murano comparably equipped! Now that's a good deal.
You never know, there may be some things you don't like about the new model. Perhaps it's just too big. Perhaps the fuel economy is compromised from the extra weight. Perhaps there may be something you don't like about the styling. I always knew people that liked the RX300 styling better than the RX330 when it came out.
As for depreciation when the new one comes out, I don't think the 330/350 will take an 'extra' hit when the '09 comes out. Lexus holds it's value and even the RX300 didn't drop much when the RX330 came out. There are always people looking to buy used and a bit cheaper and don't care about the latest most expensive thing out.
I say buy the 350, it's an awesome ride. Get a really nice deal on it. It's a very solid vehicle. As for styling, do some minor things like get some aftermarket wheels and maybe some springs and you'll be surprised how awesome the RX will look. Just take a look at CK6Speed's RX When three years comes around, you can make an educated decision on whether to buy the new '09 or '10.
Financially, you should factor in that you will probably pick up an '07 RX350 for $10k less than the '09 RX comparably equipped (and this is due to the usual new model price increase and first year demand and markup). Add to that figure the amount you would save buying the '10 model and I would say estimate $3-4k since price will be back down and you will be able to negotiate a better deal on '10 model. So financially it's actually not as bad as you think to buy now and enjoy!
That's my opinion!
Kan-O-Z
1. It'll probably be about 2 years before the '09 will come out. It's a brand new model and often times the brand new models come out in November or so. Two years is a long time to wait!
2. Do you really want to buy the vehicle right when it comes out? Here are some problems you will face.
a. You will pay MSRP or possibly even higher. The demand will be high and the supply will be low. Forget about invoice for at least 6 months to a year after it comes out!
b. First year models will have their glitches. Even though Lexus is a very reliable brand, there will be some kinks, bugs and minor things (and possibly major things) that will be there and will be fixed for the second model year.
So basically you will pay a lot for a brand new model that will have it's first year issues. If you ask me, it's much smarter to wait till second model year. Waiting gets you a more solid vehicle at a lower price! So now you're talking 3 years wait time!
The other option is to get an RX350 now and enjoy it. The 350 has a lot of upgrades including hp from the 330 and it really is one of the best SUVs out on the market today. As you mentioned, you will not pay the premium for the 350 if you buy now and most likely you will get a great deal. All I can say is we just bought the 350 and it was only like 3-4k more than a Nissan Murano comparably equipped! Now that's a good deal.
You never know, there may be some things you don't like about the new model. Perhaps it's just too big. Perhaps the fuel economy is compromised from the extra weight. Perhaps there may be something you don't like about the styling. I always knew people that liked the RX300 styling better than the RX330 when it came out.
As for depreciation when the new one comes out, I don't think the 330/350 will take an 'extra' hit when the '09 comes out. Lexus holds it's value and even the RX300 didn't drop much when the RX330 came out. There are always people looking to buy used and a bit cheaper and don't care about the latest most expensive thing out.
I say buy the 350, it's an awesome ride. Get a really nice deal on it. It's a very solid vehicle. As for styling, do some minor things like get some aftermarket wheels and maybe some springs and you'll be surprised how awesome the RX will look. Just take a look at CK6Speed's RX
When three years comes around, you can make an educated decision on whether to buy the new '09 or '10.Financially, you should factor in that you will probably pick up an '07 RX350 for $10k less than the '09 RX comparably equipped (and this is due to the usual new model price increase and first year demand and markup). Add to that figure the amount you would save buying the '10 model and I would say estimate $3-4k since price will be back down and you will be able to negotiate a better deal on '10 model. So financially it's actually not as bad as you think to buy now and enjoy!
That's my opinion!
Kan-O-Z
I really do like your reply. A lot of it is what I was thinking. I tested the MDX again and I have to say it's an amazing ride and a very well thought out car inside. The styling of the dash is beautiful too. They make you get the entertainment package to get the auto back door and that's kind of silly. It comes standard with the RX. I'm also not crazy about the price right now. Lexus also offers a higher level of service from what I understand.
What is the RX going for with navigation in the north east? I'm seeing different "invoice" prices in different dealerships with what appears to be the same package. Is this possible?