Confirmation/reservation for the Neiman Marcus GS450h - what should I do with it?

Sam Khoury · 10-20-05, 10:31 AM

I got through on Wednesday at noon for the Neiman Marcus GS450h and got a confirmation number. For those that don't know what the Neiman Marcus GS450h, it was covered in the following thread.

http://www.clublexus.com/forums/gs-third-generation/180361-neiman-marcus-gs450h-merged-threads.html

My confirmation/reservation is non-transferable and expires on the 29th. That means I need to visit my local dealer (which is being notified that I have made a reservation) by the 29th and put a down payment on the car so I don't lose my reservation. This car has a $65K stick price and is a little too expensive for me to keep. The only reason I made the reservation was that I was thinking about buying the car and then trying to sell it at a premium since it's a limited edition (only 75 are being produced) but I'm not sure if anyone will pay more than sticker price for it. In order to buy it, I would need to put down $7K now until the expected delivery date of June 1st. So what should I do?

1SICKLEX · 10-20-05, 10:51 AM

Buy it and
1. Give it to me as a tax deductible item

Sam Khoury · 10-20-05, 11:43 AM

Quote:

Originally Posted by 1SICKLEX

Buy it and
1. Give it to me as a tax deductible item

Are you a charity?

encore888 · 10-20-05, 12:55 PM

That's a tough question, I wonder how well for instance the Pebble Beach SC editions have sold...

lexusls430 · 10-20-05, 04:11 PM

If its a yes or no decision always go with no. Youll never know what youll get for it just play it safe especially if you cant really afford it.

Faraaz23 · 10-20-05, 04:16 PM

I agree with lexusls430, play it safe if you don't think its gonna be feasible to keep it. Although I'm wondering, does anyone know what the production numbers on the GS450h are on a whole and what their availability is going to be like at introduction. If there is going to be a waitlist for this car thats 1year+, then you may be able to sell it for at least 65,000. It's a risky game to play.

1SICKLEX · 10-20-05, 04:32 PM

I think some of u misunderstand how this car is going to sell. With gas at an all time high and Hollywood buying every Prius and now RX 400h they can get their hands on, finally, a "cool" car that is a hybrid.

Think about it. I think you could get no joke, 80-90k, maybe even 100k on this car in an auction. Some people have the $$$$ don't want to wait in line, don't give 2 craps about a dealer. They'll pay.

I expect the GS 450h to sell like absolute hotcakes, even at 65k. And I expect it to be the next "in" vehicle with the celebrities and rich and famous and athletes. Just so they can say on T.V "this is my new Lexus, I haven't done anything to it yet but its a HYBRID, I get like 50mpg and 500hp (most are not car guys, lol)"

lexuslover · 10-20-05, 05:09 PM

i guess anything's possible! it would be an interesting experiment. if you have the means to do it, i guess go for it, with the intention of keeping it if you don't get a price your happy with.

are they forcing you to buy it and then resell it? or can you just sell your "place in line?" only reason i ask is because your buyer might get hit with double sales tax charge since you will have to buy at 65k and then sell at 65k+ tax. that's another $5k

but 1sick is right - there might be a few people out there willing to pay 10k over sticker, just depends on how impatient they are and how long the wait list is at their local dealer. i think the santa monica lexus was marking up the RX hybrids about 10k for the first few weeks. i don't know how (b/c i thought lexus corp didn't allow it), but i read about it somewhere...

Sam Khoury · 10-21-05, 09:21 AM

Quote:

Originally Posted by lexuslover

i guess anything's possible! it would be an interesting experiment. if you have the means to do it, i guess go for it, with the intention of keeping it if you don't get a price your happy with.

are they forcing you to buy it and then resell it? or can you just sell your "place in line?" only reason i ask is because your buyer might get hit with double sales tax charge since you will have to buy at 65k and then sell at 65k+ tax. that's another $5k

but 1sick is right - there might be a few people out there willing to pay 10k over sticker, just depends on how impatient they are and how long the wait list is at their local dealer. i think the santa monica lexus was marking up the RX hybrids about 10k for the first few weeks. i don't know how (b/c i thought lexus corp didn't allow it), but i read about it somewhere...

I didn't think about the tax. That's a good point. Sales tax in NYC 8.625% so it's another $5600. I'd have to make at least that much.

This is a tough decision. Because it's a hybrid and because it's a limited edition, I thought there might be some people out there willing to spend a lot of money on this car but it's a risk if I spend $65K on a car and I don't even get the sticker price back. If I can turn around and sell it for $75K or more then it will be worth it. Otherwise it won't be worth going through all the trouble of selling it and having it shipped.

They told me the car will be available on June 1st so the important question is - will this car be released at the same time as the regular GS450h or is it going to be a couple of months after that? If it's a couple of months later, then there won't be as many people willing to spend a premium to get it.

bitkahuna · 10-21-05, 03:20 PM

I think making a profit is a long shot.

Buy the vehicle is you love it or don't mind taking a 5-10K hit (at min.) when selling it.

cleanm3 · 10-21-05, 04:52 PM

ebay auction it now. make the buyer put up the deposit of the car. just make up a contract with the potential buyer.

alexus · 10-21-05, 05:14 PM

Quote:

Originally Posted by Sam Khoury

Are you a charity?

hell.. for that i will be

E55_POWER · 10-21-05, 11:14 PM

I think you should pass if your intention was to make a profit. You will lose money if anything. Over sticker is not as common as it was back in the dot com days. Also, I've NEVER seen any Lexus go over sticker. I think it's a risk...if you want to make money get a M5 or Ferrari F430, those you will for sure make $$

DetMich1 · 10-22-05, 02:30 AM

[quote=lexuslover]

are they forcing you to buy it and then resell it? or can you just sell your "place in line?" QUOTE]
You cannot sell your place in line. The car must be purchased and titled to the same person that is named in the reservation. I read the Neiman Marcus write-up in their catalog last week. I thought it was listed for $67,000 not $65,000. Seems like a risky bet as a purely money making venture. Have any of the prior limited edition Lexus autos had stronger resale than the standard versions?

Sam Khoury · 10-22-05, 08:57 AM

[quote=DetMich1]

Quote:

Originally Posted by lexuslover

are they forcing you to buy it and then resell it? or can you just sell your "place in line?" QUOTE]
You cannot sell your place in line. The car must be purchased and titled to the same person that is named in the reservation. I read the Neiman Marcus write-up in their catalog last week. I thought it was listed for $67,000 not $65,000. Seems like a risky bet as a purely money making venture. Have any of the prior limited edition Lexus autos had stronger resale than the standard versions?

DetMich1 is right. You can't sell your place on line. The press kit said $65,000. cleanm3 had an interesting suggestion to put it on eBay now but I'm not how many people I'll get bidding for a car that won't be available for several months. I think it's risky but like I said, I thought it might sell at a high premium was because it was a limited edition and also because it's a new hybrid that isn't available yet and probably won't be widely available on June 1st. The Lexus RX hybrid and Toyota Prius have been selling like crazy and I've heard used Prius' are selling at or above sticker price. Regardless, I'm not sure it's worth all the risk.