Should I trade in my Lexus IS 350 for a CT 200h?
02-10-13, 02:26 PM
#17
I think doing this monthly payment thing is very confusing. Check to see how much you can sell the IS350 for, check to see how much you can get the CT200h with the options you want, check how much principle left you need to pay to get rid of the IS350. The difference in these amounts should give you the cost of switching, and you can decide if the cost is worth it to you. You can consider the payments you made the first year as price you paid to drive the IS350 for a year or picking the wrong car.
Last edited by nosurprise; 02-10-13 at 02:33 PM.
02-10-13, 03:32 PM
#21
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02-10-13, 04:06 PM
#24
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Take the dollar figure you put down on the car, and add the amount of payments you made on the loan.
For example 10,000 dollars down payment, + 13 payments @ $500/month =16,500
Go onto KBB and see what the trade in value of your car is twice. Once with zero miles, and a second time with how many miles you've put on your car.
There will be about a thousand dollars for every ten thousand miles.
Subtract this amount from the first figure.
16500 - 1000 = 15500
If you can deduct sales tax on your on your federal income taxes, subtract whatever amount this is too.
15.5K - 1K = 14.5K
Now take the dollar figure the dealership is quoting you on trade in. If the state you live in gives a sales tax break on trade ins, subtract this from the number above.
So continuing to work with round numbers, if you got a 35K trade in, you would pay no sales tax on a car you bought at a car dealership for 35K or less. Only the value greater than your trade in.
So subtract $3500. 14.5K - 3.5K = $11,000
Your numbers will be different, but this gives you an idea of how much money you will be lost on trading your car before even considering the cost of what you replace it with.
If you get something for less than 35K, your immediate losses will go up because there is less tax advantage. And if you get something for more than 35K you're spending 11K just to get something different. Well, either way you're spending a lot of money just to get something different.
Insurance, tires, and gas will be less expensive on the CT. Probably less than $1000 a year. It will take a looong time just to break even. And most people would have long been ready to buy a different car well before the break even point.
However, if you want something else... you want something else. My advice is take lots of time driving lots of vehicles, and not just Lexus to make sure you're going to get something you really like. Because there's the possibility of having both sellers and buyers remorse. In addition to throwing a bunch of money away buying the wrong car, twice.
You can get more money selling privately, but lose the tax advantage. And where I live most people don't buy 30,000 dollar used cars from owners. So your car might be posted on Craigslist for awhile. I've seen the same private sellers on Craigslist with their IS350s up for at least the past six months.
Good luck.
For example 10,000 dollars down payment, + 13 payments @ $500/month =16,500
Go onto KBB and see what the trade in value of your car is twice. Once with zero miles, and a second time with how many miles you've put on your car.
There will be about a thousand dollars for every ten thousand miles.
Subtract this amount from the first figure.
16500 - 1000 = 15500
If you can deduct sales tax on your on your federal income taxes, subtract whatever amount this is too.
15.5K - 1K = 14.5K
Now take the dollar figure the dealership is quoting you on trade in. If the state you live in gives a sales tax break on trade ins, subtract this from the number above.
So continuing to work with round numbers, if you got a 35K trade in, you would pay no sales tax on a car you bought at a car dealership for 35K or less. Only the value greater than your trade in.
So subtract $3500. 14.5K - 3.5K = $11,000
Your numbers will be different, but this gives you an idea of how much money you will be lost on trading your car before even considering the cost of what you replace it with.
If you get something for less than 35K, your immediate losses will go up because there is less tax advantage. And if you get something for more than 35K you're spending 11K just to get something different. Well, either way you're spending a lot of money just to get something different.
Insurance, tires, and gas will be less expensive on the CT. Probably less than $1000 a year. It will take a looong time just to break even. And most people would have long been ready to buy a different car well before the break even point.
However, if you want something else... you want something else. My advice is take lots of time driving lots of vehicles, and not just Lexus to make sure you're going to get something you really like. Because there's the possibility of having both sellers and buyers remorse. In addition to throwing a bunch of money away buying the wrong car, twice.
You can get more money selling privately, but lose the tax advantage. And where I live most people don't buy 30,000 dollar used cars from owners. So your car might be posted on Craigslist for awhile. I've seen the same private sellers on Craigslist with their IS350s up for at least the past six months.
Good luck.
02-10-13, 07:50 PM
#25
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Rode in my friend's CT today. It was raining outside and you could hear all the water at the bottom hitting against the car. The speaker system doesn't sound as surround as my car does. The nuluxe seats feel interesting. A lot of the materials on the inside definitely aren't the same quality as my IS. Also, I couldn't tell if it was just my friend not accelerating as much because of the dark and rain, but it was SO slow at the stop light.
Otherwise, it's quite nice looking inside and out. I really wish I could have both!
Otherwise, it's quite nice looking inside and out. I really wish I could have both!
Last edited by Cat; 02-10-13 at 08:38 PM.
02-10-13, 08:22 PM
#26
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the financial loss aside, having driven the ct as a loaner while my car was being serviced i can say that the ride quality in the isx50 is so much better. it seemed as though i could feel every single bump in the road - the whole driving experience while with the ct was harsh. i couldn't wait to have my car back and that might be your same sentiment, except in your case should you pick up a ct and drop the is350 you wouldn't be getting it back.
02-10-13, 08:46 PM
#29
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I'll keep a look out for good used deals if I do decide to make the switch...
By the way, same dealership offered me 34K for my IS.
02-10-13, 08:58 PM
#30
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if gas is hurting your wallet or you are a tree hugger, get the CT. if gas money not a problem, id stick with the is350. it's significantly faster, looks nicer and so much aftermarket.