nelsona

Hello,

I'm looking at purchasing a used 2014 ES with less than 20,000 miles and was wondering whether people preferred purchasing from a private dealer or Lexus dealer (CPO)?

I understand that car dealers in general do whatever it takes to screw you out of as much money as possible. But if you're ready for much of what they're going to throw at you, you might be able to walk out with a good deal.

Furthermore, when buying a certified pre-owned (which is what I will be buying when going to a dealer), you at least get some comfort in knowing that the dealer likely (but not always), fixed any major issues with the vehicle.

That being said, a private dealer might be more inclined to work out a better deal (as they're more in a rush to sell the vehicle). The only thing that gives me pause with private dealers (at least online) is that many of them are selling their vehicles a mere 1 - 1.5 thousand dollars less than a Lexus dealer.

I've also noticed that private dealers tend to sell vehicles with far more miles on them (ex. 40,000 miles for a private dealer opposed to 16,000 for a Lexus dealer). There's also the certified pre-owned extended warranty that you'll be missing with privately sold Lexus.

Any thoughts or horror stories when purchasing a used Lexus from a dealer or private party?

Thank you,
Nelson

bc6152

Well you've made some good points in your post regarding private vs. dealer sales. Private is put your money down and don't let the door hit you on your way out. With a dealer sale you do have a "goback". You can go back with complaints and issues that may be covered under a warranty. CPO or otherwise. I've sold numerous cars privately, my own, and never hid a defect or necessary repair. The same cannot be said for some others. On the other hand, dealers, for the most part in my experience, are honest and don't want to sell you a problem car and see you every other week. Private usually less cost - no goback - dealer more cost = some guarantee.

sessionstu

Look on eBay motors and Craigslist. There's some good buys on there. I wouldn't worry too much about the mileage. The ES has always been a popular model for people who commute to work. Highway miles are easy miles on the engine, transmission, and moving parts. Also, look at the demographics. The average age of a Lexus buyer is 60. More than likely this is the average age of a ES owner. You don't see many 60-year-olds burning out at red lights and speeding down PSH. Most of these cars have been babied.

I would look for a killer deal on a 2013. There should be a lot them becoming available. You should be able to pick one up for around $25,000. Bring a mechanic friend with you or make the purchase contingent on an inspection. A lot of private sellers these days have the inspection already done. They may have the paper work to show you. When you agree on a price, ask the seller to lower the price on the title. That way you save money on state taxes.

You might have to drop a grand on misc. parts (tires, detailing, etc) but in the end you'll save a lot more than going to a dealer, private or not.

One other thing: I wouldn't say that dealers are going to screw you. They're in the business to make money and have high overhead. They have to make a 20% or higher profit. But like bc6152 said, if something happens to the car, you can always take it back to them. I've never heard of a Lexus dealer that wouldn't resolve a customer complaint. But then again, these cars are pretty bulletproof. They don't get too many complaints.

Lastly, I would stay away from private dealers. I'm sure a lot of them are fine. It's the nasty ones I don't want to deal with. These guys are pros at sounding good and making you feel like you're getting a great deal. But then as soon as you walk away... It's all over.

Good luck.

Maikerusan

A top tier dealership wants your repeat business. A small time used dealer really does not care that much. Private seller..not at all.

I know which I would pick.

azipod

I think it has more to do with the actual car than the place where you buy it from. Generally speaking, Dealerships and private-dealers can source their cars from the same place (ie. Manheim auctions).

I think you should have a 3rd option for the poll: Depends.

Maikerusan

Agree, but I think a Lexus dealer would likely have a better selection from off-lease cars sold originally new at their own dealership and likely serviced there as well.

As for the auctions, there usually is a pecking order. The lower tiered dealers buy the cars with higher mileage, maybe a few blemishes etc as they know their typical end customer will put up with some of those issues to save $$.

bc6152

I wouldn't buy a used Lexus or any other car in the $25 - $30K range from a private person unless I knew them personally and had knowledge of the car history.

azipod

I don't disagree with you, but I think we are generalizing. It wasn't too long ago, that some other owner on this forum complained about purchasing a Lexus CPO vehicle, which he later found out was involved in a prior significant accident.

Bottom line is that we're buying a car. So we all need to check out the car and its history. Who sells the car is a moot point.

lesz

If I was looking to buy a used ES now, I would likely find a CPO ES that I liked at a Lexus dealer, but, after I negotiated the best price I could, I would tell the sales person that I was interested in buying the vehicle but not as a CPO vehicle, and I would buy the car only if the price was reduced from the negotiated price by an additional $2000-2500 in exchange for removing the CPO designation.

Like with extended warranties, when a dealer sells a CPO vehicle, the bump in price that comes with the CPO designation is almost pure profit for the dealership. If you were to buy, say, a used 2014 ES, it would still have about 2 years worth of the full factory bumper-to-bumper warranty left, and it would still have 4 years of the power train warranty left. Most big ticket repair items would likely be covered by the remainder of the factory warranty. Thus, the CPO warranty offers only limited coverage beyond what would be covered by what is left of the factory warranty, it would be very rare that you would have to pay out of pocket for any repairs whose cost would exceed the premium that you would be paying for the CPO designation.

Again, CPO designation has limited benefits, and the added cost of a CPO vehicle is almost all profit for the dealership.

Aron9000

Actually I prefer buying a car from a private party. You get to talk to the person, feel them out, and get a feel for how they maintained and treated the car. A lot of times they'll have a documented service history with reciepts for repairs as well, something you don't get buying from a dealer most of the time. Generally most people won't flat out lie to you.

Also meet them at their house. You can get a good feel for how they treat their car by how clean they keep their house and yard, immaculate house/yard, usually means they fuss over their car as well. Plus you can kind of get a good read on why they're getting rid of the car, ie selling it for something bigger, just bought a new Lexus, etc.

You buy from the Lexus dealer or a private "buy here pay here" lot, you don't know anything about the previous owner and if they maintained it, other than maybe service records at the dealership. Previous owner could've drove like a bat out of hell and beat the **** out of it, but that's something you have to worry more about with sports cars than a Lexus ES.

Plus with a private party sale, they're just trying to get rid of their car. They don't worry about things like profit margin and overhead, so you can usually get a better deal. Plus when the seller signs the title over, its up to you to put how much you paid for the car. This can save you several hundred dollars in taxes vs going through a dealer where they are legally obligated to collect the tax.

About the only reason I'd buy from a dealer is if its a new car(no choice) or you want that CPO warranty. Really I think the CPO warranty is a bit over-rated with Lexus and Toyotas, but it is almost vital to have if you are buying a German car.

rld14

The CPO costs $995 or $1,395 depending on the age and miles of the vehicle ($995 if less than 20 months from date of first use and less than 30K miles) so $2,000-2,500 likely isn't happening.

Also, at least for us, CPO isn't something that can legally be negotiated as it's a factory warranty and not a service contract. That's not to say some guys won't do it however.

CPO currently gives you 6 years/unlimited miles from in service date and up to first 4 services (20 months or 20K miles, whichever comes first)

wasjr

I would not hesitate to buy from a private party or non-Lexus dealer after doing prudent due diligence (review service records, have car independently checked out, review Carfax, etc). Particularly if you are looking at a vehicle that has substantial original warranty remaining. Also, I am not familiar with the Lexus extended warranty, but with Acura you can purchase at any time during original warranty period.

If you bought a 2014 with 20k mi, you should have sufficient original warranty to take care of any issues, then make a decision re extended warranty before original warranty expires (assuming you can do this with Lexus).

rld14

You absolutely can with Lexus, as long as it's under the original 4-50 warranty.

bostonsnow

my question was going to be: does anyone know of an instance where a dealer has indeed removed the CPO designation?

I was wondering if they would in practicality do this and sell at 2K less, rather then telling you there is no deal.
Also, I assume they likely pick the nicer cars in good shape for the CPO program, so understandably they are going to try to get more profit and sell at a higher price assuming a customer out there is willing to pay, which as we know there are…

rld14

I've only done it when I am selling the car to someone who is shipping it out of the country, and even then I don't like doing it.

It is absolutely forbidden to use it as a negotiating tool. Some may but we won't. And oncewe remove the CPO it's not $2K less for us cost-wise so, again, not sure that once you've hammered out your best deal the dealer is going to go another $600-1,000 off after removing the CPO.