ES3

Anyone notice some of the SC430's depreciation factor? I just found a totally loaded certified with 29, thousand miles for 49 grand. Even with the higher than normal miles, that's like 13 grand off sticker. Sure it's off season, but that seems like quite a price drop.

ceboyd

supply and demand plays a HUGE factor!!!!


...but they've been selling on ebay between $47K and $55K from what I've seen...

The market is soft right now so you can get a good deal! ...2003s are out so 2002s go down in price... most of the depreciation is in the 1st year anyway.... $13K depreciation for 1 year isn't all that bad considering it is a $65K car to begin with!

ES3

Well, 62 grand, to 49-grand still seems like a pretty good chunk, considering how recently the car was introduced. Now if only I had the extra 20-grand to pick one up for 49 grand How many 2003's is Lexus planning on bringing to the states?

Roofless

See your point, but I don't think you're analyzing the smaller picture. 29k miles is a lot - it's two years of above normal driving. So you're actually losing 13 grand over two years which isn't bad. (Keep in mind too, the SC430 was introduced almost two years ago.) With just about any luxury car maker, their top models will always soak you in depreciation - usually the first two years are the worst. And the SC430 is a top Lexus model.

Look at what you can buy a one year old BMW 7-series vs. a new one, while a 3-series holds it's value better.

Mercedes is the classic example. Buying a new SL or CL assures you of losing $20 grand as you roll over the dealer's curb. And you can pretty much count on a loss of $10 grand the following year. Buy a C320 or a C32 and the damage is a fraction of the above. It's just the way the luxury market works. It goes beyond supply and demand.

Of course there can be exceptions. There are currently very few used SC430's for sale in southern California. So we can get a break on depreciation if we sell now...

(By the way, Lexus is making 8000 2003 models - not sure if this count is North America or worldwide, but my guess is worldwide. They made 12,000 2002's.)

ES3

Good info on the depreciation. I suppose another factor is with the economy, it's a seller's market, so dealers will discount more. I found another Lexus dealer with an SC430 with 9000 miles they were selling, certified for 51-grand. At any rate, did Lexus have any problem with 2002 sales? I wonder why they're cutting 2003 production by about 25 percent?

Roofless

That's a pretty good deal!

The cut in production for 2003 models was planned from the start. They knew it was somewhat of a niche market and adjusted accordingly. That said, I'm not sure of the validity of these numbers. When the SC first arrived in 2001, those are the figures Lexus gave the press and Lexus Sales Depts.: I've never seen anything further on the matter to indicate that is in fact what they did.

Also, with this car I wouldn't be so concerned about buying a used "certified" SC430 thru a dealer? Most buyers of this car take very good care of them and usually have some wealth stature they don't want soiled in a dishonest car sale. I'm sure there's exceptions, but in this case I'll bet very few. You might save a couple thousand buying privately. Then again, if the deal you spoke of is the color combo you want, then it's hard to justify looking elsewhere. Just my 2 cents.

APLUS

Also check STS and DTS's. They seem to be the worst in depreciation. Here in Detroit a brand new STS stickers for $52,000.00. You can buy a 2000 for $19,000.00. Same for the Lincoln LS. Me personnly I would not buy a luxury car brand new unless I had the money to waste. I feel looking around for about a year and and half later, and pick one up from a person who just had to have it new but really did't know if he wanted it. I bought my GS300 fully loaded from a corparate lease that was leased for 2 years for only $25,000.00. I am know in the market for a SC430 and I hope to find one for $40,000.00 to $47,000.00. Which is not a far fetch price because I have seen some go for $45,000.00.

dchesanek

This is one reason why I like to lease. I picked up my SC in April of 2001. I think the residual was either 67 or 68% after 3 years which would place the buyout around 42,000 in April of 2004. It looks like the car will have a residual value around 60% at the end of a 3 year lease. Hopefully I don't get in a position/need to sell it since the buyout at any point appears would be much higher than what I could sell the car for. Also the somewhat low resale value's could change if the economy picks up in the next year, 8000 cars per year is not a lot when people have money to spend.

TRDGS3

Only 8000 modles are going to be made in 2003...bs....Ill call that bluff right now....they are gona make more just like they made more in 2002....sure it is supply and demand....but why make more when you can have people that want the car pay more for it...I for one was pissed when Lexus decided to make more of the SC430 in 02....I feel I got shafted by Toyota....these cars are a dime a dozen....every time I turn around I see one....I would have bought the new M3 insted of the SC430 if I knew that the resale value of the car was gona be for *****....at least you don't see the M3 alot....plus I was on the list for the first convertable and for the coupe....I wish I could go back in time and not have told the BMW place I was gona buy an SC430....anyone see the resale value of the M3....still up there...both private and through the dealers.....also please note.....with the resale value I also blame the dealers....I know for a fact that they were letting people take the cars for periods at a time to see if they liked it and to see if they would get approved for the loan...this put miles on the car and the price droped (Woodfield Lexus in Schaumburg, IL)....just venting....sorry so long but it is how I feel....M3 is the way to go....

-KRis

Larry

KRis,

Do you buy cars for the purposes of re selling them or for enjoyment ?

If you're not happy, sell the SC and get the M3. I checked both resale value of the SC against the price of a new M3, and you can do just about an even swap (plus add a lot of extras on the BMW like the new SMG.

Stop complaining and go for it.

TRDGS3

Larry:
Thanks for the advice...however...I see your point that I am being a little whinny ******...at the same time you have to kinda see my point...Toyota was only supposed to make so many....they went ahead and made more....don't get me wrong....it is a wounderful car...I enjoy driving it when I do get a chance to drive it...I just feel that the value has dropped way to much....I blame the delears for letting the price go way bleow what it should be, and Toyota for making more....the msrp on the car is way below what it should be...I own a XK8 and it was like 15k more....not even worth the 15k....the SC430 is an under priced car as it is...I for one just wish it would have held its value a little longer -or- at least not such a large drop....

I buy cars if I like them....I don't go into buying a car saying to myself that hey this will be a great car to re-sell....I buy a car for the love of driving....but at the same time when you purches anything (car -or- house etc.) it is an investiment....

Its just like in a business...you hate to put anyone in business for cheaper than what you started...

-KRis

ceboyd

Haven't you heard? PRoperty is an investment, CARS ARE NOT!

About the only car around that can be considered an easy investment is Ferarri... and specific model Porsche (Like the 959) whereas just about all other MODERN day cars will loose value. NOTE I CLEARLY STATED MODERN BECAUSE THE RULES CHANGE FOR OLDER CARS.


I know of someone who buys a new Ferrari every year and sells it a year later at a profit to buy another new Ferrari... and the cycle just keeps going... it is amazing to me to be able to do this with a car because 99.9% of the cars loose anywhere from $1K to $15K just driving them off the lot! ...except in the case of when it is a new model and everyone wants one (the old supply and demand thing started with the first Miata a ways back...)

dchesanek

I don't think anyone can make a case for the "low resale" value for an SC. Bottom line is we don't know. You can't take a few examples from e-bay or an add here and there and come to that conclusion. I just checked Kelly Blue book and although I think their numbers are sometimes high they at least use a little more data to get the numbers. Private party with 18,000 miles $ 51,000 and retail was $ 57,000. As far as the SC popularity I guess I'm lucky I live in CT since I maybe have seen 5-7 SC430's in the last year and a half. (and that includes a lot of summer driving in upstate NY.)

squarehat

Here's my theory on why more SC's were made for the 2002 model year than will be made for 2003.
The 2002s were sold from March 2001 to the end of September 2002. So the 2002 model year stretched a bit longer than the 2003 will, hence the extra production. I've seen early 2002's with 12/00 build dates, that's a long time from 12/00 to summer 2002.

ES3

Wow, 40-47 grand, now THAT'S a deal. Do you plan to buy from a private party!? Where are you located, I just found another certified SC430, for 49-grand, with Super Low Miles!