Guitars4ME

Why does the resale value of my 2014 F Sport awd GS suck so much? The same year IS350 Fsport is worth more and it was at least $8000 less when new? My residual is $39000 and I looked on CarMax and you can buy them for $35K-37K. Thoughts?

DallasDave

iTrader: (1)

Just a guess, but there are dozens and dozens of them available for resale (at least in the Dallas area). People pay a premium for scarcity...the GS is NOT scarce. Plus there seems to be virtually no difference between a 2013 and 2014 model. My observation is that the older model is "bringing down" the value of your 2014.

da mayor

iTrader: (2)

The mid luxury sedans all have that issue of having lower resale value. And all you see are GS for sale all over

kmm

My thought is you should be happy and thrilled you leased.

Low resale is the lessor's problem not yours.

Also, if the residual is way higher then fair market value at lease termination, expect the lessor to negotiate a lower buyout with you if you want to keep the car.

Joeb427

iTrader: (1)

Lexus doesn't negotiate residual number.
A bank or leasing company usually will.

Big discounting kills resale value.

kmm

Lexus doesn't lease vehicles.

There is a bank that writes the paper.

These underwriters are not idiots and will negotiate the buyout.

Dallasguy1

Total agree I could see the delivery certificate in the dash and it was 58k$ when it rolled out in jun 2014 and i bought it for 32k in less then 2 years that sucks big time.

Joeb427

iTrader: (1)

A Lexus lease from a Lexus dealer residual is not negotiable.

kmm

Well, then we can agree they are idiots.

...no disputing that...

Joeb427

iTrader: (1)

I agree.

I tried negotiating the residual on two Lexus leases.
The last being a '13 GS and was told twice by Lexus they don't negotiate the residual.

kmm

Just flashed on something-I remembered that lessors can insure their residuals.

Therefore, the insurer is the idiot....

With all due respect to the insurers, like the rest of the world, they did not foresee the collapse of oil prices and the migration of car buyers from sedans to gas guzzling SUV's.

spoogenet

This issue is affecting more than just GS, a couple years ago the US auto industry leaned more heavily on leases and good discounts, and now all this inventory is hitting the market. Here in TX many of the GS are coming from CA and FL lease returns.

I wish I got as good a deal on my '14 as some others have, but I was quite specific in what I wanted and there was only one in the whole state. I decided to buy rather than wait and see. If I wanted an F-sport and not picky on colors, there are bunches of them.

Sevn86

I agree spoogenet, all the cars I looked at when I was shopping for my GS in 2015 were lease returns from CA and FL. Even when I was looking for my RX back in 2012 they were mainly coming from CA. My RX is a lease return from CA and the GS is a lease return from FL.

jjscsix

It may seem bad, but be realistic. My car listed for just over $59k and I got a $5,000 discount when I bought it. I traded it for $36k at exactly two years old. That is 60%. And that is not actually "resale" value because the dealer obviously sold it for more than they gave me for the car.

DallasDave

iTrader: (1)

It's strange that Lexus won't negotiate on the residual value. I'm about 90-days from the end of my BMW lease and they have already told me to get back with them in 60-days. At that time, they can give me a "better" figure than the current residual dollar amount.