Poppa

Thanks Lesz, I appreciate the info... sounds like a gimmick that gm tried to use a few years back.. I think there was a no haggle pricing policy when they came out with their Saturn line...

Poppa

LexBob2

Here is the link to Lexus Plus and a list of dealers in the program. I haven't heard anything on how the concept is working but it seems like it would be difficult in areas with a lot of competition.

https://www.lexus.com/lexusplus/

lesz

I can see where there would be an appeal to many to buy at a "negotiations-free" dealership, and I might consider buying at one if the price premium for choosing to do so was, say, a few hundred dollars. But I just checked the websites of several of the Lexus Plus dealerships and looked at their pricing for the 2017 ES. The pricing for the ES at the Lexus Plus dealers was consistently at least $2000 higher than the prices that could easily be achieved even without much negotiations at a non-Lexus Plus dealership and as much as $4000 or more higher than would I would expect that a more skilled negotiator could get at a non-Lexus Plus dealership.

With the kind of differences between pricing at Lexus Plus dealerships and non-Lexus Plus dealerships, it is hard to figure how the Lexus Plus dealerships are selling many cars at all. The only thing that I can figure is that their pool of customers has to come primarily from people who have no idea how much discounting is available, even with minimal negotiations at non-Lexus Plus dealerships.

Wandl

Supply of pre owned 2016 ES models are low (comparable to previous years) - there are also a lot of new 2017's sitting on the lots as consumers flock towards SUV's - given the incentives and need to move new inventory, I'd almost bet you could find a new ES for around the same price as a pre-owned one. Someone on the forums was able to snag a brand new ES (base) for ~$35k and this was several months ago, I'd think the incentives have only gotten bigger as we are in the 2nd half of the year.

LexBob2

In looking at the list of Plus dealers on the web site, it looks like no new dealers have been added to the list since I last looked at it a few months ago. There were 10 back then and still at 10 today. I read that Lexus would like to expand this concept but maybe it's not taking off as well as expected.

Swishbro

I just bought my 2015 ES 350 for $31,000 and it only had 25,600 on the odometer. It was traded in on a new one and I'm guessing he was lucky to get $27,000 for it, and it sold new for about $44,500. That would mean a depreciation of @ $17,500.

It's certified so I have a 4 year unlimited mileage bumper-to-bumper warranty and two years of maintenance with valet service. They installed new tires and disc brakes and the car is in nearly mint condition. I just don't see the need to buy new when they throw all this at me. If money were no object, I suppose I'd buy new. Then again, I'd be driving a Ferrari and not a Lexus.

Mike728

What would concern me is the need for new brakes at such low mileage. One of the many reasons I only buy new. You never know what the prior owner did with the car.

lesz

There is no question that there is huge depreciation for new cars in the first few years after they are purchased, but it should be noted that there is also very large depreciation on relatively new CPO cars in the first few years after their purchase. And the reason for the large depreciation on CPO cars is that the purchase price of those 1-3 year old CPO cars is inflated by about $2500 for the CPO certification and warranty.

So, there is another way to look at the numbers. Right now, one could buy a new 2017 ES with the Luxury Package for around $37,000 or $38,000. Two years from now, that car will have a trade-in value of around $26,000 or $27,000. On the other hand, a 2015 CPO ES purchased for $31,000 today, will have a trade in value of around $22,000 two years from now. Again, the depreciation on CPO cars is inflated because of the large mark-up that results from the CPO certification.

Thus, while the new 2017 ES will likely depreciate more, in the next 2 years, than the 2015 CPO ES, the 2017 ES's depreciation will likely be only about $1000 or less higher than the depreciation for the 2015 CPO ES, and many would consider that to be a small premium to pay for being able to drive a brand new car.

hsingh123

Irishbrahm,
Would you please provide details of the car (options, MSRP etc) and your dealer info. I am looking to buy an ES350 by next week and would really appreciate your information. I am in Atlanta too.

irishbrahm

I bought a UL from Nalley Lexus Roswell for ~$40k. The last time I checked the UL inventory in Atlanta had dropped considerably, although it looks like Butler Lexus in So. Atlanta has 4 17s/

jgscott

iTrader: (1)

A few other things to consider on the 2017, in just a few months or less, you have a year old car already.

Also are you going to really trade it in 2-3 years or keep it a while? If changing that fast may be better to lease it, altho Lexus Lease rate are not the best out there.

If they change Body styles, in 2019 the New Car will have more depreciation than the $1000 or less higher than the CPO, comparing 2 years from now.

jgscott

iTrader: (1)

Nalley normally sells Lexus's for less than most other Dealers.