aznpapaya

iTrader: (12)

So the other day i received a letter from my dealership(plaza motor) saying that they are in short supply of used cars, especially mine(IS350). They say they are willing to offer me more then market value for my car if i wanted to trade it in for a new/used car or straight up cash. To make this deal even more enticing they are willing to pay off the remain balance on my car if i buy a new/used car that's under 41k~, and they are offering me interest as low as 1.9%.

this deal seems untrue, because:
1. I still owes like 10k on my car(which they will pay it off for me)
2. my interest right now is 6%(so i saving a lot on interest)
3. i figure they probably give me about 20k for my car

so that all adds up to about 30k for my car, so i do trade it in for a new IS250, which is about 37K, i'll be paying actually 7kish for my car with lowered interest rate! I'm planning on visiting the dealership next week and if everything is true imma jump in a new ISC in a heart beat.

What do you guys think? you guys think there some sort of catch to this? or it's just a gimmick to trick me to buy a car from them to boost their sales?

syzygy

My only question is, why on earth would you ever start with an IS350 and downgrade to an IS250?

The IS250 is a phenomenal car, but relatively speaking, you're going to have acceleration withdrawal seizures if you made such a switch.

People switch from the IS250 to the IS350, not the other way around.

As for your question, the only certain fact is this - one way or another, the dealership believes they will end up making more money in the short or long run by making this offer.

Is it possible for both you and the dealership to "win" in this situation (and they end up making greater profits elsewhere - perhaps from selling the car you give them at an even higher price)? Sure, it's possible.

Maybe they suspect that if they butter you up with a good offer, you're more liable to stay within the Lexus family for future cars, thereby earning them more profit.

Maybe, it's some other reason entirely. I don't know what the reason is, but it helps to consider the fact that a dealership is not going to offer something without a pretty decent chance of turning a bigger profit through the process.

iRock

iTrader: (12)

It's true. I get those letters for thr RX I had all the time. I would go get a 350c if I was you today

MBTC

In general the dealer is not going to do anything that they lose money on. I'm guessing they might want to get rid of some 2010s still in inventory since the 2011s are coming soon? They save some money on interest by moving inventory, but not enough to make crazy decisions.

It doesn't hurt to pay them a visit and see what they say. Having lots of mods on your car might impact the deal somewhat in their favor. Also sometimes when you get there on the haggling table, sometimes your assumptions going in are true and other times not.

I would say overall its mostly a plan to get you buying your next car from them, but that's not necessarily a bad thing -- if you're going to be brand loyal Lexus is a good brand to do it with!

As others said going from a 350 to a 250 might bum you out on acceleration. I love my 250, even though I came to it from a Maxima which was close to a 350 in HP. In my case I didn't really use all that extra power, I'm one of those that needs "just enough" and I'd say that accurately describes the power of the 250.

If you go down there and talk to them, please let us know here how it went.

aznpapaya

iTrader: (12)

i know that the dealership have to gain from this that's why i'm so skeptical about their offer. I will go talk to them and let you guys know how it turns out. and as for why i wanted to "downgrade" from a 350 to a 250, I brought my 350 when i was 20 and at the time speed was everything to me, hence i decided to get the 350 for the extra power(too influence by the fast and furious). Now i barely speed at all, so i was thinking why should i get another 350 and pay extra for the bigger engine and more for gas when i dont speed. on top of that i want an AWD since this will be my DD and i need something that i can depend on in the winter.

sandwiches

iTrader: (1)

They just want to get you into the dealership.

SPNinjA

iTrader: (12)

I agree! I received a couple of these offers in the mail from Lexus too. I'm still getting letters like these from when I use to own a Honda...

Kurtz

iTrader: (1)

This.


It's pretty much a form letter they send to everyone.

They'll be happy to pay off whatever you owe on the current car, it'll then show up in the price of the car you'd buy from them to replace it.

metalgear

Why not wait for the IS350 AWD?

allst4r

iTrader: (7)

they just want to get u in.. i got one for my rx..

tC_demon

I get those letters all the time from Lexus, Honda, Acura, and Toyota. Don't be surprise if the low ball you on the trade in value, or they give you an extra $100 for the trade in. Remember the APR is based on excellent credit.

bnizzle87

ive gotten a few of those letters previously for some of the toyotas we've owned, and i just recently (sat afternoon) got a buy back offer for my IS. they say they need to meet the projected demands of used cars, and customers tend to buy used so that they wont have to deal with the high depreciation in the first few years of ownership. if power isnt that big of a deal, then a downgrade might not be bad because then you wouldnt have to make monthly payments or, if so, not have it be so much as if you were purchasing without the trade in offer. dealers do tend to lowball often just to maximize profits from secondhand sales, so i'd be wary of that. if its a good offer, i say at least think about it and not disregard it altogether. best of luck!

JBrady

I agree with the form letter and that the payoff will end up back in the deal. They are a business and need to make money. Nothing wrong with that.

The form letter thing is marketing spin. Years ago I bought my elderly mother a 1993 Mercury Grand Marquis. Last year she received almost the SAME letter from her dealer stating they had a need to buy her car because they had a demand for 1993 Mercury Grand Marquis...

Infra

iTrader: (1)

You've paid, what, $30k not counting interest so far on your IS350? You owe $10k on your car. Is there something wrong with it?

You're really willing to pay another $20k BEFORE mods ($37k for IS250 - $30k offer + $10k you owe) or more just for a minorly updated model?

If you wanted to get a new car and an offer like this came along, sure, why not think about it... but in this situation, you'd just be throwing money away.

If you are concerned that much about what your interest rate is, refinance your loan for the same term as you currently have remaining. It's typically a $200 fee, and current rates are slightly lower than the 6% you have.

Karlson

iTrader: (1)

I've gotten those letters before from the Infiniti dealership, I always threw them out because I never wanted to bother with the dealership. It seems like one of their plotting schemes to reel you in.