pander

Went to the local Lexus dealer (Lexus of Orlando) to see about trading my 2015 GS with 13,600 on the odometer. Get ready Folks, trade in value $28,000 (residual after 36 months $30,000). I have 18 months to go on the lease. I was told by the sales manager to keep the car and ride out the lease. My payment is $475, which he agreed was now a great payment because they can not even touch that without money down (mine was 0 down/0 due at signing). It will be interesting to see what you guys think.

Interestingly Lexus is now leasing CPO cars (4 years or newer) I may do that the next time.

shurik74

iTrader: (5)

Pardon but what makes you to trade GS in? I would just wait until lease is over, only 18 months you have a good monthly payment though...

Value is tanking on 80% of vehicles in general. Only I would say only Toyota Tacoma never depreciates LOL

kmm

Why aren't you thrilled you leased? Smart move-let the lender take the residual hit.

kamskeez

First, it's a luxury car and in general most have horrible depreciation in the first 2-3 years, upwards to an average of 50% depreciation by year 3. You can easily score a low mileage CPO Lexus GS or Mercedes E350 for below $30k nowadays.

Second, the '13-'15 is now the "older" generation. From a design standpoint, it is outdated in comparison to the '16+. I'm seeing more '16s in the CPO market now. Demand usually leads toward the newer gen in the used market.

Third, overall demand is low and supply is high for GS' in general. A ton of people got amazing lease rates on the '13-'15 GS which led to more people leasing than buying. When they were returned back to the dealers, many just sat for months or went to auction. It's a car that I believe is more for the enthusiast than the everyday consumer who leans either towards the ES or IS.

Trust me it's not ideal seeing the value of your car drop like crazy. But you have to go in knowing it's not ideal to sell in the first few years. Just ride it out and enjoy it!

kmm

pander is paying $475 a month. Jeeeze! He's living the dream!

kamskeez

I sold my 3 year old Tacoma for a profit before getting in to the GS. Unreal and amazing haha.

pander

Tacomas do hold their value, that is for sure.

I was just looking at downsizing my monthly expenditures that is why I was looking at getting rid of it. $475 is a nice lease payment considering now you have to put $4,000-$5,000 down now and still probably be at the $600's. Interestingly though, the sales manager at Lexus told me they buy the lease returns cheaper than the residual value (actually the current market value) from LFS, an option we do not get when turning the leased car back in. As far as the CPO lease, according the the sales manager, they do not negotiate prices on CPO Lexus. I think that is kinda of ridiculous since a CPO is just a used car but they give the CPO moniker. Lexus of Orlando also offered the 120% KBB trade in deal, of course that is on any new Lexus. I plan on riding out the lease and if I go over my mileage just pay the penalty if I go over a little, but I figure I will have no problem staying at 30G on miles. Thanks guys for the comments.

dseag2

SUVs and Crossovers are hot now. Sedans are not, and in particular, the GS. That would account for the depreciation. Ride out the lease and trade it when the time comes. It is a great car. Plus you got great lease payments. Why do you feel the need to trade it in now?

pander

Dseag2;

Was just looking at downsizing financially a little. I do like the car though. I will ride out the lease and probably look at leasing something different. I was looking at the new Honda Civic 4 door hatchbacks or the VW Golf GTI's. I have seen those cars leasing for around the mid 2's or lower with a down payment. I definitely will lease again, either new or CPO on a higher end car, unless I find a sweet deal from a private seller.

1111GS

While your payment is unbearable if you plan to trade in, you should take to carmax to get a quote. That way you can be in a better position when dealing with the dealership. My 15RX with 30k was worth more than that. Best luck with your plan.

pander

You think CarMax would be hire thana Lexus dealer?

jtrue28

They're looking at the same database. Lexus may give you more, if you're buying/leasing your next car from them. I've really never had an experience where CarMax had a higher number than my Lexus dealership.

yok3dIS

Funny you mentioned the Tacoma. As I was talking to my broker, he mentioned that the only 2 automobiles that keep their value is the Tacoma and the Jeep Wrangler. Apparently, everyone wants one lol.

Sevn86

There seems to be a lot of talk in recent weeks about the GS and how it sucks at holding it's value. We seem to get one new thread a week.

atrac7

Agreed, it's a bit of beating the dead horse too much if you ask me. It's a luxury sedan, this is quite prevalent in amongst cars in this segment. I never treat my car as an investment other than an emotional/enjoyment one. If it's bought, it's already a bad investment...worrying about the $ figures on the value of the car doesn't affect or make the car any worse in its day to day job and pleasure of owning one.