Purchasing a Used Lexus: Private Dealer vs Lexus Dealer
 

Hello,

I'm looking at purchasing a used 2014 Lexus with less than 20,000 miles and was wondering whether people preferred purchasing from a private dealer or Lexus dealer (CPO)?

I understand that car dealers in general do whatever it takes to screw you out of as much money as possible. But if you're ready for much of what they're going to throw at you, you might be able to walk out with a good deal.

Furthermore, when buying a certified pre-owned (which is what I will be buying when going to a dealer), you at least get some comfort in knowing that the dealer likely (but not always), fixed any major issues with the vehicle.

That being said, a private dealer might be more inclined to work out a better deal (as they're more in a rush to sell the vehicle). The only thing that gives me pause with private dealers (at least online) is that many of them are selling their vehicles a mere 1 - 1.5 thousand dollars less than a Lexus dealer.

I've also noticed that private dealers tend to sell vehicles with far more miles on them (ex. 40,000 miles for a private dealer opposed to 16,000 for a Lexus dealer). There's also the certified pre-owned extended warranty that you'll be missing with privately sold Lexus.

Any thoughts or experiences (good or bad) while purchasing a used Lexus from a dealer or private party?

Thank you,
Nelson

Nelson,

I was in your boat last year, even though the private dealer might be $1-2k cheaper than the dealer. You are better off buying from Lexus. Yes they charge more, but less mileage + cpo warranty sold it for me. I had put almost 5k miles since October. I had the sunroof + rear sunshade replaced by warranty and that alone was $3k.

I was in your boat about 2 months ago. I went with dealer cause of low mileage + cpo. Most private dealers was selling 13's for the price I got my 14.

In my experience, there has often been a "story" behind a private dealer's cars. Lots of private dealers buy cars that have minor scuffs/scrapes/damage that they lightly touch up and sell for much less than the Name Brand dealership.

I once went to a private dealer with a friend of mine for a used SUV and the car didn't have a single scratch or even scuff mark which threw up a red flag for me (he didn't buy the car).

The CPO route is best since the price difference between Lexus and non-lexus, private dealers is usually not worth it. When you're spending so much on a car, another thousand for peace of mind shouldn't be a deal-breaker.

The other option I considered before purchasing my CPO lexus was buying a non-CPO GS from a Toyota dealership which still had some of the remaining original warranty. The car was about $1800 cheaper overall. This will def. save you some money if you can find a GS350 with the options you want at a reputable Toyota dealership.

I was in your sitiation 2 months ago as well. I crossed off private dealers afte checking out 3 cars all at different places and all had problems with bodywork. Now this is not always the case, it just seems to me the private dealers buys cars that needs some TLC for less and will sell for less hence the "cheaper" price tag.

During my search, I've spoken to about 5 different Lexus dealers and they all told me that the small private dealers buys the leftovers that the larger dealers don't want. Now this may be due to cosmetics or internal damage.

I guess you can always go by the rule of thumb that if it is good good to be true then most likely it is.

Bought my 2013 off a private dealer last spring, saved at least $4000 over what my local Lexus dealer would charge (their prices are disgustingly high and they are not willing to negotiate much). No problems with it, it's been a great car for a year now. To me, totally worth it. CPO warranty would be nice... but I thought about it and it wasn't worth $4000+ to me, because these cars are known to be very reliable. But if you go the private dealer route, definitely get it inspected by either a Lexus dealer or independent mechanic that you trust.

Well,

CPO costs us $1,395 and you get the balance of a 6 year or unlimited mile warranty (From date of first use - this changed in January). Technically the car should be in superior condition as well (5/32 on tires, 6mm on brakes, up to date on services, 2 keys, no excessive paintwork).

Also, this month LFS has 0.9% for 60 months on all CPO GSs (even 2010-11s).

Saving $4-5K? Yeah that's convincing... $1,500-2K? Not so much but I am a tad biased.

Im looking right now too and lexus is offering 0.9% financing for GS CPO if that matters.

^beat me to it

I agree with this. If my local Lexus dealer had been within $1500-2000 of the private dealer I would have been all over that to get the CPO. So like you said, couple thousand difference, get the CPO, something more like my situation where I saved $4-5k, private dealer is worth a hard look.

mrkwinning is correct. All the cars you see at the private dealers are not worthy to be CPO'd. That is why the Lexus dealerships pass on those at auctions. Majority has major paint work done which would be clearly visible by a trained eye. I've seen some that the whole car had orange peeled paint from a respray. I would definitely buy any CPO from a Lexus dealership as they are able to show you the service history. Which is a great relief to be able to see.

Well,

There's a few things to throw out there...

First, not many nice Lexuses (Lexi?) make it to the LFS auctions. I buy about 34-40% of my lease returns, and of the cars I reject, about 30-40% of those are bought by other Lexus or Toyota dealers at online auction. Of the remaining cars the only nice ones are generally going to be cars that we don't want such as CTs, Non-Nav ESs, ISs and RXs, etc. The GSs that end up going to auction are generally the pigs.

Not that LFS is the only place to find wholesale cars, and not that they don't run some nice stuff, but the majority of it stays within the Lexus dealer network. I know some independents who only sell pristine cars and I know some that only buy junk for cheap. It all depends, but there are indeed nice cars out there that aren't Lexus CPO'd and I have seen some pigs sold as CPOs.

Do you work for Lexus?

Yup. Pre Owned Manager.

0.9% for 60 month ?
I just bought my cpo gs on 1 APR,the dealer pull my credit which Equifax 725,Experian 675, and TransUnion 715, and they chose the lowest one 675, and give me 4.99% no matter how many month。

Possible they were counting the deal for the previous month?

Tier 1 and 1+ Qualify, a 675 Experien (WHich is what LFS uses by default, at least here in the northeast) is high enough to qualify for using an alternative bureau.