Lil4X

Trade in time is fast approaching - the lease expires in early June on my '04 RX 330. Talking with Lexus Financial Services, I find they are willing to sell me the car for $23.500 + TTL. It's a FWD, with Nav, RSES, 18's, heated seats, rain-sensing wipers, HID's, headlight washers and the prem plus package. It looks brand new and has only 35,000 miles on it.


Photo courtesy ArmyofOne

Given the current book value of the car, I think I'm going to buy out the lease. Here's my thinking:

1. It's in great condition and has had no problems whatsoever.
   
   
2. They are willing to sell it to me for considerably less than similar, higher-mileage cars on the lot.
   
   
3. By financing for three of four years, I can cut my monthly cost of operation pretty dramatically over a new Lexus.
   
   
4. If a wait a year or two for the RX 350 to arrive and get its initial development problems solved, I can probably get a better deal on a more thoroughly sorted-out product.
   
   
5. By that time, we may be looking at a 3rd gen RX - or maybe a new gen of GX or LX built on the Sequoia platform.
   
   
6. I can always flip it, considering I don't think I should be upside-down on the loan at all.

What do you think? Am I missing something?

4TehNguyen

iTrader: (1)

I wouldnt think you would have to wait for a couple years for the RX350 to get issues straightened out, its essentially the same vehicle just with a different engine, tranny. Not sure if anything else major changed. With that in mind wouldnt its main issues be sorted out since the design has been out for a few years

PhilipMSPT

iTrader: (5)

It seems that you are content with the current RX and the deal that Lexus is offering you, but are really looking forward to a newer model in the future.

If so, keep the RX now, and worry about the future models in the future. The worst thing you can do is buy something new to exchange it for something in less than a year or two. And as nice as the new RX350 is, do you really need the extra power, or are you content with what you have now?

bitkahuna

iTrader: (20)

If you don't want it buy it anyway and I'll buy it off you for a profit to you.

KVA

Take the deal...your not going to find an RX in that condition at that price.

mmarshall

Pass up on the offer, take it back to the dealership in June, turn in the keys, and just pick out a new 2006 RX330 there and write up a new lease. Since you apparantly keep your cars in good shape and put few miles on them, you are already a good candidate for leasing. By doing this instead of buying it back from Lexus, you will kill three birds with one stone. First, you will be able ( if applicable ) to continue deducting the lease payments from your taxes....you will lose that option if you buy it. Second, the low depreciation rate of the RX......and most Lexus products.......generally means attractive lease payments due to low projected depreciation and high residual values. Instead of spending the money for a vehicle ( even if you still like it ) that is 4-5 years old with 35,000 miles you will get a brand-new one instead. Third, if you just take it back to the dealership and turn it in, the finances and paperwork will be much simpler.....you will not have to concern yourself with things such as who drives the car home on whose tags if a private sale is made to another person. ( If you buy from Lexus, of course that will not be an issue ). But IF you then turn around and sell it to someone else ( bit has already made an offer ) there will be the likely complexities involving who gets whose tags to drive the car home with, Notary Public requirements for title transfer, and maybe the taxes involved on a person-to-person sale that would mean another trip to DMV to re-register and pay those taxes ( not all states have these taxes ). The question of whose tags one drives the car home with and insurance coverage is important, especially if the car is in an accident on the way home or is stopped by police for any reason.

Lil4X

Thanks for the input guys!

After talking with a dealer or two, they can't come within $10K of the price - for a CPO, or about $8K for a lesser vehicle on the lot. Although I'm not a fan of the FWD, I'd rather have a low-mileage car that is known to me rather than spend a WHOLE lot for an unknown quantity. I won't make the final decision until late May, so this plan is subject to change.

There is a second consideration. My wife is perfectly happy with her ratty old '92 Grand Caravan. It's in pretty good shape mechanically at 97K miles. A couple years ago we re-insulated the roof and replaced the headliner and visors, and limo tinted the windows. She's very fair-skinned and has developed a sun allergy that causes her to break out in welts rather than sunburn.

The problem is that the van is one of those '92-'94 Chrysler products that was cursed with a really miserable primer coat - that causes the paint to peel off in thumbnail-sized flakes. Right now it looks like a Calico cat, deep blue paint, grey primer, and light tan rust showing through in spots. Simple repainting won't fix it - it's going to have to be stripped to bare metal, primed and painted. Now the primer is starting to show light rust and we are either going to put $1200 worth of paint on a $1000 car - or buy another one. It's hardly worth investing in a new one, since she seldom drives it - maybe only 1200 miles per year.

I'm really tempted to paint it and drive it 'till it dies. It needs a new sound system and re-carpeting, a new windshield, probably a new exhaust system (hey, it's 12 years old), some new rims and tires. With that - maybe $3000 - $3500, she could still drive her beloved old van, but not have to be embarrassed by it.

Fortunately she doesn't want much - cloth interior, no moonroof, good stereo/CD. She prefers a minivan for its flexibility - and we already have a good long-distance cruiser in the family. All she needs is something to haul groceries, packages, occasionally paint and plywood, and a REALLY cold AC. I want it to be as reliable as the old Plymouth, which has been absolutely bulletproof (knock wood). Try as I might to point her to a new Sienna (practically an RX clone), she doesn't want to spend a whole lot of money. I'm tempted to buy a new upscale F-150 pickup, but she'd probably kill me - or worse, comandeer the RX.

Anybody know Xzibit's phone number?

LexFather

Pimp the wifes ride!!!

ArmyofOne

Hey i know that picture .. i should, i took it.

I would keep it bob, its a very nice truck, with the exception of the nav system