Horrible resale
03-09-16, 06:28 PM
#1
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Horrible resale
I bought my 2014 CT200h new for around $32,000. Base model without any of the major options. It currently has 33,000 miles, and due to the desire for a larger vehicle I'm looking to trade.
Unfortunately this has been a rude awakening. Received an eval from a dealer today indicating the trade in value would be $17,000. That is a HUGE loss in 2 model years. Mind you it really hasn't been but 18 months since it was purchased. Checking the KBB site, it indicates trade value is $19,000. Either way this isn't good, because I never expected to be upside down on this car, but here we are. It will take many monthly payments to catch up with the depreciation curve. Have I read this story here before?
I'm very disappointed in the rapid curve on this car. Having owned several Lexus vehicles before, I expect a reasonably good resale value.
I'm baffled by the results here since, as far as hybrids go, this is one of the few sporty models by any make.
On a side note, one reason I purchased this car was due to my wife being happy with her 2012 CT. Strangest thing is that her car drives better than mine, even with the same model of tire.
Unfortunately this has been a rude awakening. Received an eval from a dealer today indicating the trade in value would be $17,000. That is a HUGE loss in 2 model years. Mind you it really hasn't been but 18 months since it was purchased. Checking the KBB site, it indicates trade value is $19,000. Either way this isn't good, because I never expected to be upside down on this car, but here we are. It will take many monthly payments to catch up with the depreciation curve. Have I read this story here before?
I'm very disappointed in the rapid curve on this car. Having owned several Lexus vehicles before, I expect a reasonably good resale value.
I'm baffled by the results here since, as far as hybrids go, this is one of the few sporty models by any make.
On a side note, one reason I purchased this car was due to my wife being happy with her 2012 CT. Strangest thing is that her car drives better than mine, even with the same model of tire.
03-09-16, 07:18 PM
#2
According to NADA Guides (I heard dealers like to use them) a very rough trade-in value of your car (no major options) is $17,900, in average condition trade-in value should be very close to $20,000, clean trade-in at $21,700. Clean retail for your car is shown at $24,400. I would bargain with the dealer or consider selling the car privately.
Last edited by Olasek; 03-09-16 at 07:22 PM.
03-09-16, 07:48 PM
#3
This 2014 CT200h with 33,000 miles has few options and dealer wants over $29,000. It is given that whoever buys it will pay less but I doubt you can get this car there for less than $24K.
https://www.cars.com/vehicledetail/d...1035/overview/
https://www.cars.com/vehicledetail/d...1035/overview/
Last edited by Olasek; 03-09-16 at 08:04 PM.
03-09-16, 10:43 PM
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Condition is above avg, no blemishes at all. I have also seen dealers listing retail prices of $22,000 and up for similar. Dealer claimed the price was based on mannheim which would be auction based I assume.
03-09-16, 10:54 PM
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Resell value just suck.
a buddy of mine just traded in his 2015 fully loaded fsport. dealer gave him 24k.
Keep in mind he went to a Acura dealer, if he would of went to a lexus dealer he probably would of got 26-27k for it.
Reason being 1/1/16 Lexus now has unlimited mile warrantys on all certified cars.
So here were my options I could of bought his for 24k with just the factory warranty.
or do What I did which was, buy a 2014 with same miles less options (no nav) for 27k.
But the 27k 2014 that I bought has a warranty til 2025 unlimited bumper to bumper.
If I would of bought his it would of just had the 4year 50k factory.
So to me, it was worth it to go this route.
Its my commuter and i plan to drive it for a long time.
That being said, go to a lexus dealer try to trade it in their they give more then even carmax now because they can sell them for a lot once people realize the changes they made with their warranty program.
a buddy of mine just traded in his 2015 fully loaded fsport. dealer gave him 24k.
Keep in mind he went to a Acura dealer, if he would of went to a lexus dealer he probably would of got 26-27k for it.
Reason being 1/1/16 Lexus now has unlimited mile warrantys on all certified cars.
So here were my options I could of bought his for 24k with just the factory warranty.
or do What I did which was, buy a 2014 with same miles less options (no nav) for 27k.
But the 27k 2014 that I bought has a warranty til 2025 unlimited bumper to bumper.
If I would of bought his it would of just had the 4year 50k factory.
So to me, it was worth it to go this route.
Its my commuter and i plan to drive it for a long time.
That being said, go to a lexus dealer try to trade it in their they give more then even carmax now because they can sell them for a lot once people realize the changes they made with their warranty program.
03-10-16, 12:24 PM
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Got a quote from Carmax today....$18,000 so virtually the same value as a $17,000 trade when you consider the sales tax credit on the overall transaction. I agree that if one were to trade at a Lexus dealer the value would be higher.
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03-11-16, 08:01 PM
#9
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If it makes you feel any better I was offered $2500 for my 4 year old smartcar as a trade-in when I got my Lexus.
If I didn't put 50,000 km on my car yearly I would gladly lease!
If I didn't put 50,000 km on my car yearly I would gladly lease!
03-13-16, 07:41 PM
#10
Getting rid of a car that early is financially painful. 50% at three years is often typical (for a trade). The Hybrid market is poor with fuel down -- the new cars are being heavily discounted. I don't know who would buy a used one for 28k -- you can buy on new for that. The high optioned ones are sadly not a good value.
If we can get a lease with good terms we lease with the intent to purchase. We put many miles on the car .. so we normally have to buy ... but it can still often be less expensive if you need to trade at the end of the lease. It takes some of the risk out.
I picked up my 2015 CT back in September. It's a 0 down 3 year lease ...$312 @12k a year .. with a 17k buyout. Lexus paid my first month and full GAP. My out of pocket is $10920 at the end of the three years.
My current Prius Five was around 28k +tax -- It's about $540 month with a 5 year 0 percent payment I was going to buy another Prius before I went with the CT. I could have bought a new Prius for 2k less vs what I paid 4 years ago .. so about 28k +tax last September.
The Lexus will cost me 10920 plus the 17000 = 27900. (tax on the 17K) If the car get stolen or totaled -- I'm only out the lease amount paid and only the lease portion of the tax.. as the gap buys me out. I put $225 into my car fund each month to account for the difference in payments between the lease and buy -- so I have $8100.00 towards the 17k buyout in the fund. I self finance the 9k for the final two years (3%)
The Lexus is actually cheaper to lease vs buy .. and cheaper vs a new Prius.
I have had one car stolen and one totaled in the pats 25 years -- the lease really works out well when this happens with a new car. Twice I have had lease cars with over 60k at the 36 month mark and the dealers just eat the miles to get me to flip the car.
Lexus tossed 5k at my lease and only about 2500 if I purchased. The $312 payment obviously includes Lexus financing the car for three years. Plus the normal dealer discount.
All of this really kills the resale value of the cars.
If we can get a lease with good terms we lease with the intent to purchase. We put many miles on the car .. so we normally have to buy ... but it can still often be less expensive if you need to trade at the end of the lease. It takes some of the risk out.
I picked up my 2015 CT back in September. It's a 0 down 3 year lease ...$312 @12k a year .. with a 17k buyout. Lexus paid my first month and full GAP. My out of pocket is $10920 at the end of the three years.
My current Prius Five was around 28k +tax -- It's about $540 month with a 5 year 0 percent payment I was going to buy another Prius before I went with the CT. I could have bought a new Prius for 2k less vs what I paid 4 years ago .. so about 28k +tax last September.
The Lexus will cost me 10920 plus the 17000 = 27900. (tax on the 17K) If the car get stolen or totaled -- I'm only out the lease amount paid and only the lease portion of the tax.. as the gap buys me out. I put $225 into my car fund each month to account for the difference in payments between the lease and buy -- so I have $8100.00 towards the 17k buyout in the fund. I self finance the 9k for the final two years (3%)
The Lexus is actually cheaper to lease vs buy .. and cheaper vs a new Prius.
I have had one car stolen and one totaled in the pats 25 years -- the lease really works out well when this happens with a new car. Twice I have had lease cars with over 60k at the 36 month mark and the dealers just eat the miles to get me to flip the car.
Lexus tossed 5k at my lease and only about 2500 if I purchased. The $312 payment obviously includes Lexus financing the car for three years. Plus the normal dealer discount.
All of this really kills the resale value of the cars.
03-17-16, 06:40 AM
#11
https://www.vehiclehistory.com/blog/...ng-gas-prices/
03-18-16, 12:44 PM
#12
I leased my 2015 Prius for 6 months then traded it in for a CT. I lost about $5,000. It stung but life is too short to drive something you don't want.
Go to Carmax they're known to be a bit on the generous side with their quotes. Or best option is to sell privately. Price it to sell. Don't be too stubborn on the asking price.
Go to Carmax they're known to be a bit on the generous side with their quotes. Or best option is to sell privately. Price it to sell. Don't be too stubborn on the asking price.
03-19-16, 06:48 AM
#15
The Prius has much more usable space -- it's a well thought out vehicle.
The CT's engine sits further away from the cowl -- I don't see how it's the same car with a different skin.
The CT's engine sits further away from the cowl -- I don't see how it's the same car with a different skin.