joe41

I'm set on buying an IS350, my local lexus dealer has 3 used 2016's miles ranging from 25k to 44k. I know buying used can save some significant $$ but the new ones have a big discount and 0% interest on 60 months. There are 2 on the lot that are fully loaded, nav, park assist, ML audio, triple beam leds, etc and its tempting to just get a new one. Are the improvements between the 2016's and 2019's enough to warrant buying new and spend about $9k more? What turns me off the most of buying used is that I don't know how well they were maintained or driven and what turns me off from buying new is that in 1-2 years the redesigned model will be out. I plan to keep the car a min of 4 - 5 years.

I"m coming off a bmw 340i lease and not interested in releasing. Also is the IS350 ML audio as good as the HK in BMWs?

Flash5

I would usually recommend used, but in this case I would probably go for the new one if you’re going to keep it for that long. My real recommendation would be if you can hold off on buying something and wait to see what Lexus does with the IS then do that. The audio system is subjective it just depends on your preference. I had a full kenwood speaker setup in one of my cars with a 12” sub etc and it was pretty beastly, then I switched to a Miata and put a tiny 8” shallow mount and pioneer system, etc, then moved on to the stock Bose system on my G37S which was fine to me as well. Now, the stock non-ML system in Lexus is fine to me and I’m 24 so it’s not like I’m super old lol. The 2017+ come with the facelift and basically you get the entire safety system + with features lane keep assist etc. They also updated a number of little things like the suspension and safety of the frames and subframes etc I want to say that was on the 2018. I say go with the 2019 if you’re really going to pull the trigger now. You could always go with a 2016 and then trade in for whatever new IS comes out later.

TonyN

iTrader: (1)

I always try to buy 1 or 2 year old cars, I try to avoid the initial depreciation and look for a certified version for the extended warranty. Sticker on my 17 is was 46xxx, I paid 30k with 17k miles and got an additional 2 years unlimited miles CPO warranty. The car didnt have everything I wanted but enough to make me justify the cost savings.

Sometimes I do buy new if I'm going for specific options and combo, the most recent was my wifes 2018 Camry that we bought in October of 2017 that we ordered to her specs and colors. Sometime you gotta lose some money to keep the wife happy.

Tharr62

THIS! I just bought a 2016 IS 200t for $24K with a three year CPO (car has 23K on it). This specific car looks brand new inside and out, and the service records are perfect. This was a great deal, and I plan on keeping the car for 7 years driving about 8K a year. This same car a few years ago was close to $49K.. I have always "had to have new" in the past. Finally at age 37 I have smartened up a bit, and understand that its much better to buy a CPO car. Take your time, do some homework on what to look for in a used car and get a good deal. Nothing can beat that! Hell, use a search like auto trader and find the car you want anywhere in the USA and just fly to get it. It makes for a fun experience, and if your buying A CPO car you can get all the service history you need, and have them take extra pics and video for you of everything. It's not a big deal.

EDIT:

Also, this at times is a big scam. Scotty Kilmer on youtube did a video on this too.. and I have seen it first hand. Generally, what you think is a great APR (and is) is based on a higher selling price, with hidden fees. In fact, if you goto your local bank / credit union and get pre-qualified at a normal rate and then cash buy the car you often will get a much better deal (even when you factor in paying APR). 0% offers are often a big distraction to most consumers.. all the while they dealer is getting a much higher sales price on that zero %. Trust me.. it's rare that your going to get a "deal" with 0% APR.

joe41

Thanks for your reply. I can get the new one for 19% off MSRP, but buying a used one make sense, I will probably look for a 17 or 18 model and see if I can get a deep discount.

joe41

Thanks, I didn't think about using Autotrader, will check it out.

pizzafan

There's too much generalizing here.

I bought an 16 IS300 AWD, 45k msrp. I'm paying 310/month for 3 years, 10k/month lease. 0 driveoff and first month payment was free. Did max out on security deposits though (otherwise monthly was 330 with first month still being free). For all this to happen, 6k negotiated off msrp, plus 3k in rebates, 1st month waived was a lexus deal at the time, and 61% residual on 36/10.

A CPO or Private Party used car would not have been cheaper over 3 years, and the newer car is better (19s now have safety standard that 16s did not)

New can often end up being cheaper than used if the right things come into play.

Current residual on the IS is lower than it was 3 years ago. In April, the IS had a 5200 lease rebate. This month its 4k I think. I'd wait till next month and see if rebate & residual go back up.

OP is getting 18% off, so he's atleast decent at negotiating. If I were OP, I'd try to get them to come down even more. For most Lexus models, the lease rebate is greater than the purchase rebate, so might as well lease it.

0% if coming from Lexus is 0%. I doubt the dealer is providing the 0%. Either way sales price, pre rebates, is independent of purchase/lease/finance decision. If its not, then it's a shady dealer.

All the above said though, for the IS in particular (compared to other Lexus models), 3 year used may make sense as the car has depreciated more than overage

joe41

Is 18% of MSRP a good deal or can it still be improved?

Tharr62

HI Joe. That sounds great, except it may not matter much. I used to sell cars years ago and know a bit about this process.

What you need is the cash price to be set in stone, and buy the car from the dealer with your own money. If not, and you end up financing the car with the dealer (bad idea) your 18% "savings" is reduced to about nothing.

Trust me. No one is giving away new cars. Especially lexus.

If your going to buy new and have your heart set to do so. Then be prepared to either come with your own financial plan to the table. (bank check, or at least know the rate you will get a few banks without the dealer). The APR is where the dealer makes all the money. Not upfront on the "price".

If you want the best deal, cpo is the best way to go hands down. Buying new, you will be loosing a lot of money the second you drive off the lot. If you truly keep the car for 10 or more years than this is okay. But if you don't plan on paying it off.. It's a bad idea. Personally, I think it's a bad idea regardless. Why pay twice as much for a new car, when you can pay half as much for the same car and still get about the same warranty? Is it worth over $20k to really have a 2019? VS a 2016 that looks brand new with 15k in miles or so? Invest that extra money into something more important with your life man. That's honestly the best idea.

Tharr62

EDIT.. I just re-read your first post.. so, if you can get 0% for 60/mo that's for sure good (as long as that does not change). So, then your back to the selling price of the car. How much is the *exact* car built on Lexus website? vs. how much is the selling price of the car from the dealer? Then, see what the "dealer fee" amount is (this can be a thousand or more) and anything else that they intend to tack on.

Generally speaking, a NEW car has about $4K of room to work with. Pre-owned is totally different.. Generally too, when a dealer "discounts big" on the selling price that is MORE than made up for on the back end of the deal with the APR. In fact MOST 0% offers listed (if you read the fine print) specifically tell you that this only qualifies under MSRP pricing. Other "discounts" (dealer) will not work in conjunction of 0%. This is the "gimmic" that car places practice.

SO.. if my friend you can get 18% off the MSRP from the actual list price of the car from Lexus.com.. AND.. you can get 0% then yes, you may have a nice reason to buy new.

However.. money is money.

Again, I just bought a car that looks brand new inside and out (and I am picky AF) 2016 IS, all the options that I wanted with 23K on it. I paid $24,000 out the door with a 3 year bumper to bumper from Lexus. This when it was sold on 6/11/16 was $45K. I just saved $21,000 for a car that NO ONE would know was not mine from the start. I have all the Lexus service records printed out.. and it matches the cars recommended service to the tee. From here on out, I can get crazy and do oil every 5K and polish it with a diaper if I want. :-) This car will out last any expectations that I have. For me, its 7 years to own (paid off in 5) then sell for about $8 - 10K at that time with aprox. 100K on the clock based on my past 5 years of driving. This now means.. LOL, that I have only "lost" apx. $11,000 in total on this car over a 7 year time frame. vs. loosing over $35,000 as a "new owner".

Which do you think makes the most sense in the long run?

We all want new. I get it. I did this game for years. BMW, MB, AUDI.. even my last RX350. HAD to be "new". never again.

Leasing is the most costly way to have a car by far. (your always paying each month). This is great for brands that have high maintain cost tho. (BMW, MB, etc). But, if you want to be smart Lexus is a safe bet for the longer run. No need to lease (which I know your not). so, then it becomes new or CPO and when you look at it like I broke down its hard to argue with a nice CPO car!

Funny thing is.. 4 weeks after I bought my brand new 2015 RX 350.. I got a big parking lot dent :-( SO annoying! My "new" CPO IS.. looks flawless. Anything can happen at anytime. Its far worse tho when your buying new...

Tharr62

Leasing is the most expensive way to a car in the long run. I leased cars for years, and realized IF you pick the right car (Lexus / reliable) there is no need. The key is to obviously stay with one car for longer then the loan / lease term. Assuming you can / willing to do that.. leasing is not a good choice. The OP here is looking at buying not leasing anyway.

Well, I just bought a CPO 2016 IS for $24K with three years of bumper to bumper. That car was $45K new. If I keep that car for 7 years and sell for the average (8 -10K) I just "spent" $11K on a car vs. loosing $35K on that same car as the "new owner" did. Something to think about :-)

A used, Private party or CPO car of ANY kind will always be cheaper in the end vs. taking the hit of a new car. Leasing does not count here, as you never own anything. Your just renting it.

This is for leasing (renting) the car. Dealer makes way more on a lease cause they can re-sell the CPO car after. Its like selling it twice. Buying new never is as good as buying CPO or just used from someone else. What planet are you from? It just makes no logical sense, and this is terrible advice to give.

First, ANYTIME there is 0% in a car deal its ALWAYS done by the manufacture (Lexus / Toyota financial) So, this is always in play in the deal. Generally in the fine print to qualify for that offer you need to be a tier one approval (750+ credit score), and is also based on a set MSRP price. If that changes then you can expect a MUCH different story in the F&I office when signing the papers. I have been there and done that, and I have been on both sides of this desk having sold cars for BMW for years. BTW, I highly doubt that the OP did any type of "negotiating" to get that 18% off. If he did this is done in the heat of the moment to get the car NOW. IN this case the dealer is "offering" this rate.. which comes with some restrictions that are in fine print. $4K is about all the markup on a new unit thease days. anything beyond that, and you can trust your paying for it in dealer fees, or APR. OR a bad lease deal.

KISS> keep it simple...

1. Get the VIN of the car you want
2. Go to your local bank and apply for credit, and see what this REALLY will cost you.
3. Have a blank check ready in hand at the dealer and THEN negotiate the car sell price for CASH.

THEN.. see how they can beat that. If that means 0% then, analyze the deal, and look at the sales contract.. whats the bottom line selling price out the door vs. you paying modest interest at your own bank?

Simply take the better of each, and you sleep fine at night.

Or.. be smart and buy CPO and save over $20K ;-)

Shaftplay

used.

you will save yourself so much money.

I just bought a 2016 is350 F Sport for 24k with 30k miles (heated seats, AC seats, heated steering wheel, etc...). window sticker is over 50k.

interior and exterior is mint, it's basically brand new. 360/month payments, cant beat it.

Tharr62

Nice man! This sounds almost exactly like my deal too!

To the OP who is comparing new vs CPO.. think of this.. find a NICE car like this one I just got, not a scratch on it.. mint condition.. CPO for three years, AND pretend it comes with a savings account with over $20K in it. Would you rather have a car deal like this, or.. a new one and pay that much more just to be "new". Its CRAZY the price difference if you do a little extra work and locate the car you want!

joe41

Thank you for your post, I appreciate your advice. I looked around and found a nice IS350 2017 with very low miles. I'm going to look at the trade in value and take low end of the range and offer amount, then increase it by maybe $500 max.

Tharr62

You are very welcome :-) This sounds like a good plan! If you have found a good car with the options you want, then you can work with whoever to get a fair price based on what others are paying for the same thing. In the end, this is going to be a great deal for you inside and out. Post pics when you get it!

- T