iowaman

I have had my 2004 ES330 for a couple weeks now and I love this car. I just got back from a trip to the Pacific Northwest and drove a 2017 Nissan Maxima, it does not even come close to my car

I plan on keeping my ES330 for at least 5 years or longer and then buying a newer ES model, maybe an ES350

I have done a lot of research and given depreciation, I think it makes perfect sense to buy a 5 year old Lexus vs a buying a new one- I did a quick estimation and if I were to buy a 2017 ES 350 vs a 2012, we are looking at close to 24K lost in depreciation over the initial 5 year period.

Not trying to convert anybody to my ways, I would never buy a brand new car because economically does not seem to make any sense to me but how do people justify taking such huge depreciation? To me it sounds literally like throwing money out the window.

bc6152

For those that can afford a new car and want a 4 year period of no worries, then that is who would buy a new Lexus. Add to this that some people wouldn't buy anything but a new car simply because they just want a new one. I have a 2013 with 12k on it and plan to buy a NEW Lexus next year because I simply want a new car and can afford to buy one.
I'm quite sure that there are many that don't even think about depreciation and at the same time - don't care...

roninlexus

Well I have to agree that buying new is not the most economic way to go but it certainly has it's perks. I have bought new and it was a fun experience. However if you want a new car every few years why not lease? Can I afford new-sure but to me it just makes sense (for many reasons including the depreciation) to buy used. In 2016, I got a 2013 as I had the newer body style, found the right car and can get out of it with very little pain. Also, the bleeping thing looks brand new and coming from a Toyota, I am still having that "new" experience. If something hit the market and was a must have, then maybe new would be an option. However I like to look at other (sports) cars for weekend driving and that 24k depreciation you mentioned would get a nice one..... My 2c anyway.

azipod

It's a personal decision. Some people buy new because they want a new car. Some people choose to buy a used car because they want a used car. Some may be related to finances and some may be not.

Depreciation doesn't mean the same for everyone. Some people don't care.

It' just like the real estate market. Sometimes it doesn't matter if your property appreciated 5 times since you bought it. The appreciation means nothing until you actually sell the property. Same for the car. But even then, again, some people simply don't care.

sonatine

Dealers make way larger margins off a used car than a new one. But then again, from a value stand point who would buy a luxury car over a Honda/Toyota then? I am also debating this and considering replacing my car.

Maikerusan

Ok...this answer might not be popular with some but 24,000 over 4 years is 6 grand per year which works out to $500 per month.

I happen to be in the older demographic and as they say "You can't take it with you". May as well enjoy my money.

An immaterial amount to many people.

Poppa

Maikerusan;9865034, this made me laugh.. I'm right there with you my friend.. New vs used has always been a personal decision. I don't think there's any argument that buying used is always cheaper.. but as someone else pointed out, there are perks like a 4 year warranty.. I can tell you personally when my wife and I were first married we struggled financially... always paid our bills, but certainly couldn't afford a brand new car... She had a 78 pontiac firebird and I had a 79 ford thunderbird ( the big t bird that had the look of a lincoln on the front end ). We drove those cars for over 13 years... and as you can imagine near the end we were having some mechanical issues that were costing me money... So when the time came for us to buy a car, I was hell bent on a new one.. and we have bought new every time since then. When it came time to buy my Lexus, I knew I would be retiring in 3 or 4 years so I went with a new one again, knowing full well I'm going to be driving this car for at least 7 to 10 years... And since I plan to drive my Lexy for that long, depreciation doesn't really come into play .. but I agree if you're one that trades cars every 2 years or so, then in most cases leasing is the way to go.

UKEE

If nobody ever bought new, you would never get the 'used' car that you wanted!

modad

My line of work allows me to depreciate vehicles as a business expense. Even though I could do this with a used vehicle, the 'tax savings' from the depreciation makes it less expensive to drive new and with the company paying it doesn't feel as personal as using "my" money. (but I'm only fooling myself on that one). My 'other vehicles', such as my current Z4, are ALWAYS going to be a used purchase.

iowaman

I bought my 2004 ES330 for $5200 cash, it drives perfectly so, I think it was a pretty good decision. I am not a car person and I have always been a fan of Camrys and Corollas, I have always seen "luxury" cars as a complete waste of money, I am talking Audi, BMW, Mercedes primarily but I think a Lexus purchase perhaps could be justified rationally due to its reliability- at least I am trying very hard to justify this purchase

I am an Industrial Engineer, so value/efficiency is pretty much how my mind operates 24/7. I really hope I have a good experience with this brand, I otherwise, I will go back to driving old Toyota Camrys that last 300K miles

Freds430

Your logic is 100% spot on. Days when cars maybe made it to 100,000 miles buying new might have made sense. I always buy a three year old car with about 30,000 miles and drive them to about 120,000 miles. Knocking on wood now but never needed a repair but only routine maintenance. This has worked for almost a million miles between our two cars. Was putting 40,000 miles a year just on my car when traveling for work. Lexus's if maintained per schedule can easily last 2-300,000 miles. They have been ranked by J D Power #1 in dependability for six years in a row. That new smell of leather is nice but way to expensive.

zes

I agree wth you guys. My car dealers had mostly been used car lots and car recyclers. I have rebuilt more engines than I care to remember and have driven cars well in excess of $150k miles.

But I do believe that every red blooded man deserves a new car experience at least ONCE in his life :-). That is why I bought mine. It is a character building experience to feel the pain of the first scratch or ding on one's new love!

And you know that you REALLY love your wife if she puts a ding on it and you just let it go. You cannot have any of these character building experiences with a used car.

LexBob2

I'm currently on a "break" from Lexus. After two back-to-back ES350's I decided to try the Audi brand and bought a Q5 and now an A6, my first Audi's.. The Lexus' were both great cars and I'll probably get another before too long, maybe the next gen ES. For our 2nd car I bought a BMW 328i X Drive and recently traded for an X1, my first BMW's. I buy my cars, but don't keep them beyond the factory warranty period and am at the point in my life (old ) where I want to try different brands. Fortunately all of these recent cars have provided a positive ownership experience.

Kijug

I prefer to buy new so I know everything about the car--and I keep my cars for 10+ years. I don't mind a little dirt and scratches and such that are inevitable, but I know they are "my dings". By "owning" my car, I take care of it. I know the outside may get a ding or two but I take very good care of the inside where I "live". In addition, if I knew I was going to buy and sell and car in two or three years, I would not care much about it. Hence, buying a used car, even a reliable one like Lexus, concerns me. Leasing and trading every couple years is a nice option for some, but I don't want forever payments. So I justify the extra cost (initial depreciation) in that a) it is "my" car, and b) I know it has no faults [hopefully!]

My two cents.

peteharvey

It all depends how picky you are, and your attention to detail.
If you are not very picky, and don't have enormous attention to detail, then an used car is almost exactly the same as a brand new car.
However, if you are picky, and have enormous attention to detail, then a brand new car is NOT the same as an used vehicle.

Vehicles don't just depreciate for no reason at all; there is a reason.
Notice how a house/building made of wood depreciates much more rapidly than a reinforced concrete or brick house/building?
It is the same with cars.
However, where a house/building is "static" [stationary], and it is exposed to low forces, a motor vehicle is exposed to "dynamic" [moving] forces, hence motor vehicles age much more quickly than a static house/building.
Hence the equally fast depreciation in value.

You have damage to exterior panels from sunlight, tar, stone chips, and door dents.
Then there is mechanical depreciation as the idle becomes more rough, and the engine becomes more coarse to rev.
Then the damage to the body [chassis] from constant pounding over bumps, causing flexing of the body, and more creaks and rattles.
For example:
https://www.clublexus.com/forums/es-...-problems.html

In life, you get what you pay for.
There's no such thing as a free lunch.
This notion that an used vehicle is almost exactly the same as a brand new vehicle for a fraction of the price is a misnomer.

My two pennies...
_