Around here, the dealers scoff at Edmunds and Kelly Blue Book. They use Galves, a pricing service that I'd swear was in collusion with the car dealers to steal trades. If anyone reading this has access to Galves, I'd be curious to know what the '06 IS350 is worth in their book.

 

I guess KBB should have some errors on estimating the value of used IS. It does not give any value difference when I select the sport package and no package. The estimated number is slightly affected by navigation though.

Guys try this on KBB website. you will see "Default spec.+exellent condition+ 7500 miles=$34490" and "default spec.+sport pkg+nav+exellent condition+7500 miles=$35160". Price difference ($770) comes only from navigation. Isn't it Strange?

 

Actually, Nav resells for about $700 only across all automobile makes and models. Depreciation for Nav sucks.

Try it on any car. Resale value of the Navigation system will be less than $1k...

 

Options worth NOTHING when it comes to trade in or resale values.

 

that is the very reason we lease cars for two years or three then lease another one.

tax deductable is a good thing on a depreciating item

 

"Actually, Nav resells for about $700 only across all automobile makes and models. Depreciation for Nav sucks.

Try it on any car. Resale value of the Navigation system will be less than $1k..."

Yes I agree, Philip. But what happened on sport package side?
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"Options worth NOTHING when it comes to trade in or resale values."

Really?

 

Adding on options doesnt inscrease the value of your car.

Its simple. If you buy a car brand new you gotta keep it for more then 5+ years. Or just lease.

 

Unfortunately cars with more options depreciate much quicker. Do a KBB on a Base IS350(MSRP 35800). And you will see it loses a minimal amount.

Then do a KBB on a loaded IS350(MSRP 45000), and you will see its worth only 1-2K more than the BASE IS350. Sucks, but thats the way it is.

 

So, Anyone with loaded IS350 wants to trade with my base IS350? I will pay 3K

 

I heard from the Lexus dealer that IS models tend to have the highest residual among the other models. Is that true? Seeing as how I have put 1500 miles on my IS, my retail value dropped 6K already.

 

You have to calculate residual valve after five years to get true a perspective. After five years Toyota/Lexus vehicles do, in fact, have one the highest resale values. If you look at other brand vehicles you see that they take incredible hits in residual.

Koz

 

You might be able to do that. The Local Lexus Dealer here had a Lux Package/NAV IS350 with 8K miles for 37800.

When I wanted to trade in my near base IS, they offered 31K. I sold it for 33K. So I would have only needed 5K to trade my base IS350 for that one fully loaded with NAV. But it didnt have ML, and the interior wasnt the color I wanted(it was black)

 

I don't consider car as investment...but more like a tool.

Stock and real estate have the potential to increase in value, but we all know 99.9% of the time, car depreciates in value once it leaves the lot, (maybe if you own a Toyota Trueno AE86, it might increase in value, but that's a rare case).

So if you can think of your car as a tool, like your digital camera or your computer, I bet you'll enjoy your car more.

 

Never consider a car as inventment and KBB value is not that accurate for a high demand car. I bet you if you put your car on craigslist at the value stated by KBB, there will be at least 20 buyers chasing after you.

In fact, true market value is the price determine by both seller and buyers. There will be no one selling their is350 at the KBB value now. It is actually very hard to find any non-dealer sellers for is350 out there now.

As for me, I intend to keep this car for a long time so the depreciation value does not really matter.

 

I will be selling my Is250 AWD perhaps in a couple more months (Dec 2006).

Just got the words today that there is a possibility that I will be nominated for promotion (executive level) in charge of overseas operation for couple yrs starting jan 07. So I guess I will be moving to overseas.

I will post back how good (or not good) the used IS market when I put it for sale.