Ok, so I found IT! Certified 2019 with 10,000 miles on it. It has everything I wanted including the Levinson Audio Package. So where do I heck go from here? I've never had to dicker/deal with dealers because I always had the GM Family Discount or my local Toyota Dealer which just has one price less rebates. I've looked at the Kelly Blue Book and the price is on the low end of "fair market value" for this vehicle. I've Googled, but do you have any tips that have worked for you? How much do they usually have room to play around with? Any tips appreciated. I hate this part. Won't have any problems with financing, I'll be using my credit union. Although, there is a possibility about leasing. I'll post that in another thread! P.S. I'm 3 hours away from the vehicle and from another state.
Typically, Lexus dealers are reluctant to do very much negotiating on CPO vehicles. They may be willing to move a relatively small amount off of their advertised pricing, but the amount will likely be much smaller than the level of discounting from MSRP on new vehicles.
I consider 0-2 year old CPO vehicles to be among the worst buys available in the auto market. First, the supply of those 0-2 year old CPO vehicles is small because not many have yet come back to dealers in the form of trade-ins or lease returns. Then, the demand for 0-2 year old CPO vehicles is high because there are many potential buyers who (mistakenly) think that they will be buying a car that is almost new for a price much lower than what would be the price of a similarly equipped new car. The combination of low supply and high demand leads to highly inflated prices.
Further, when dealers certify a used car like the ES, they will typically bump up the price by $2500 or more. With the inflated price caused by low supply and high demand and with the addition of the premium for certification, the reality is that it is often the case that the price for such an almost new CPO car will be very close to or, in some cases, higher than the price for which you could have bought a brand new similarly equipped car. What the dealers are counting on is that many buyers have no idea of just how high the discounts are that are available on brand new cars, and they know that, if they stick to their inflated prices, some unknowing buyer will eventually come along and be willing to pay the inflated price or something very close to it.
People here on CL are reporting discounts from MSRP of around 15% on the purchases of new 2019 ES vehicles, and, as we approach the end of the model year and as both advertised rebates and unadvertised incentives to dealers increase, those discounts are likely to approach 20%.
My experience has been that, on multiple occasions, the price that I paid for a brand new car was actually less than what I would have had to pay for a 1 year old similarly equipped CPO car. Again, the dealers know that, if they hold to their inflated CPO prices, someone who is willing to pay those inflated prices will eventually come along.
Thank you for the information! The msrp $48693 and they are asking $41,657 with 10,000 miles. I guess I will give it a shot and try for that 20% for a new vehicle.
Thank you for the information! The msrp $48693 and they are asking $41,657 with 10,000 miles. I guess I will give it a shot and try for that 20% for a new vehicle.
Not a great deal at all even though with 10k its still like brand new. Buy a leftover 19 new and youll get it for close to that price.
Thank you for the information! The msrp $48693 and they are asking $41,657 with 10,000 miles. I guess I will give it a shot and try for that 20% for a new vehicle.
With some "smart shopping" and with getting a 2 or 3 dealers competing with each other for your business, that price is one that I'd expect would be about the price for which you should be able to buy a brand a brand new 2019 ES right now, and, in another month or two, you should be able to get an even a bigger discount on a new 2019 ES.
With the original price of $48,000 and an average discount of 15%, the original selling price was around $41,389 which is their asking price. It is a used car with 10,000 miles so my first offer would be $5,000 less than that so $36,300. If you love the car and perfect color combos and options I would go as high as $38,400 which will be 20% MSRP. based on my history Lexus always ask about $3,000 more then they are willing to sell it on the used market. Be firm. Be willing to walk away. if this one is in Illionis then it was a dealer loaner so you know they maintained it and nothing is wrong with hopefully. If sold to individual you would have to wonder why they traded it in with 10,000 miles.
Also, you MUST test drive it. When I bought my Acura Legend Coupe in 1987, a dealer 1.5 hours away was offering a significant discount on a car with a about 1,000 miles. I went for a test drive with a cashiers check in hand. I found some issues including a rattle and the ride didn't seem right. I went back home and paid the higher price locally.
If you do choose the CPO route, make sure it's L/Certified, not just marked from the dealer as certified pre-owned with no additional warranty or maintenance coverage.
