Hello,

I'm looking at possibly buying a used 2014 ES 350 (with less than 20,000 miles + Ultra Luxury Package + Mark Levinson + Park Assist / Cross Traffic Alert, etc) for around $30,000.00 - $34,000.00 and was wondering what people's thoughts were on buying new / leasing instead?

I'm leaning towards buying the ES as I want a comfortable, reliable ride with good safety features and plan on keeping the vehicle for 10+ years.

That said, it seems that a lot of people prefer to lease or buy new rather than buy used.

I'm just wondering if I'm making a mistake buying a used ES.

If a similarly equipped 2016 ES goes for around $48,000.00 - $50,000.00, the cost saving of $16,000.00 - $20,000.00 seems like a good deal (as well as the extra CPO warranty), but I'm worried that I might be missing / overlooking something in my rationalization for a used ES opposed to a new / leased ES.

Any help / insight would be greatly appreciated.

Thank you,
Nelson

 

I've been buying new vehicles for over 30 years, never had a desire to lease. Everyone has their own priorities, which when I was young, was to get the most bang for my buck. Back then, I bought used. No one knows your situation better than you. So, you need to decide what's best for you.

As far as leasing... Looking at how often I go through cars, I would probably be a good candidate for leasing. I've never kept a car more than 5 years, and often 3 to 4. That said, I don't like the restrictions that come with a lease, like mileage. I never know what life will throw at me. Some cars I drove about 10k miles a year, while others, around 20k. Life changes and I don't want to have to worry about how many miles I can drive without paying a penalty.

 

Is the car a CPO, if so, then the savings is the way to go!

It will be a wonderful car with most of the factory warranty (that never seems to be necessary...) still in effect. There will be no mechanical problems with the car, and if there are (but that never seems to happen) you're still are covered.

What's not to like about that?
=================================
My karma just ran over your dogma
Current Hers: '13 Lexus ES350
Current Mine: '08 Jaguar S-Type 4.2 "Satin Edition" (250.06 whp / 259.67 torque)

 

I'm very big into leasing, however, if you plan on keeping the car for 10+ years, I would not lease.

 

Very good advice.

I keep my cars long term, so leasing is not for me. Even if I were tempted to lease, I don't like the restrictions. If I get a ding or small dent in the bumper, if I own it I decide what to do ...fix it, live with it etc. With a lease, they charge you for damage beyond a certain point, the tires have to meet their standards, etc.

 

Now that we are well into 2016, the prices for 2013/2014 Pre-own vehicles have dropped significantly. As you may know, luxury cars loses the most value during their first 3 years. There are plenty of great buys out there for 2013/2014 Lexus vehicles. With your budget of $30-34k, you will have absolutely no problem picking up one with the UL package. I picked up my mint 2013 ES300h with ML + UL in the beginning of the year in the mid 20s. Prices have dropped since then.

Try Carlypso or Beepi. Both are established start-ups and have AWESOME deals on new-new pre-own vehicles.

The other week, I saw a 2013 ES300h, 43k miles, ML+UL on Beepi for $26,500. It's been sold. I think the ES350s are normally cheaper .... so you should be spending $25,000 +/- a few grand or so.

Happy shopping!

 

While I would not hesitate to lease, if you are looking to keep the car 10 years I would buy. CPO was mentioned, but if you find a car with substantial original warranty remaining, that is good also. I have done this before and it gave me time to determine if there were any issues with the car.

As an aside, I read an article last week that predicted used car prices are expected to be flat or decrease over the next few years as there will be a substantial number of vehicles coming off leases, and not just luxury brands.

 

Nelsona, lease then but it at the end of your lease. its cheaper that way plus you know everything about your car totally. Ive done this many times. Unless you have all the cash and can negotiate a better buying price.

 

ES 350 has a proven, tough drive train and should last 10 years plus, and 120k plus miles with no problems if maintained well. If you don't mind used go for it.

 

When comparing buying a used car and driving it 10 years to leasing new cars, the leasing of the new car is going to cost way more. The plusses are you're always driving a new car, with buying used you start out with outdated technology and styling and you get even moreso obviously.

When comparing buying new vs leasing new the numbers are totally different. If you know you're going to be happy keeping it 10 years though you should still buy.

Honestly you should lease. I've done the numbers backwards and forwards, and unless you're going to keep the car 6+ years buying doesn't make sense. Leasing is on the best side no more expensive than owning, and on the worst side less expensive than owning. Then you have the other benefits of not having a downside when it comes to resale, yet still having an upside (i.e. you can still sell or trade it), not having to worry about tires and brakes, not having to worry about accidents and diminished value.

As for mileage, if you go over you just pay, not that big a deal. You would pay on resale value too. You may not even have to pay, like I said you can sell it or trade it, and if you're over miles and can sell it or trade it for the residual or more, or even less but still not as much less as your mileage penalty you're golden.

I've never seen a scenario where it was cheaper to lease it and then buy it, unless you can write the lease payments off your taxes and are factoring that into the equation.

 

@Everyone: Thank you all for your help and suggestions.

Nelson