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Depreciation and Resale Value?

 
Old 09-03-18, 10:46 AM
  #16  
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Originally Posted by DRGibbons View Post
You all know leasing is the MOST EXPENSIVE way to finance a vehicle, right? Leasing is just another way to finace with closer to an effective 10%-15% interest rate. Run the figures and you will see. There is a reason that car companies push leasing so enthusiastically. They make more money off of the lease than the actual profit on the vehicle. Kinda like credit cards . . . . . . .

I guess it is a way for people that can't really afford the vehicle to feel like they can . . . . . . .
Care to post the numbers? Companies, more or so, make more money off leasing because of repeat customers, not so much off of interest. A person that buys keeps a car longer and will step into a dealership less than a person who will lease. I lease through Lexus and my money factor when converted to interest is something like 4%.... So where'd you get 10-15%?
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Old 09-06-18, 07:13 AM
  #17  
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Originally Posted by DRGibbons View Post
You all know leasing is the MOST EXPENSIVE way to finance a vehicle, right? Leasing is just another way to finace with closer to an effective 10%-15% interest rate. Run the figures and you will see. There is a reason that car companies push leasing so enthusiastically. They make more money off of the lease than the actual profit on the vehicle. Kinda like credit cards . . . . . . .

I guess it is a way for people that can't really afford the vehicle to feel like they can . . . . . . .
10-15% is very high. If those were your numbers on a car you leased then you got hosed.
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Old 09-06-18, 01:53 PM
  #18  
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The steep depreciation probably means there is a current low demand for the LC due to various factors.

Check out the Mercedes S-class sedan. The S class has a 5 year depreciation of 63.5%, according to US News Nov 2016 article.

So depreciation is our friend. Wait a few years, and grab a LC for $50k Lexus models age well, and the LC is well ahead of its time in terms of its design.
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Old 09-07-18, 02:06 PM
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Originally Posted by docboy View Post
The steep depreciation probably means there is a current low demand for the LC due to various factors.

Check out the Mercedes S-class sedan. The S class has a 5 year depreciation of 63.5%, according to US News Nov 2016 article.

So depreciation is our friend. Wait a few years, and grab a LC for $50k Lexus models age well, and the LC is well ahead of its time in terms of its design.
Mercedes S Class vehicles are a dime a dozen. They also range from 90K to 250K so it's hard to rate actual depreciation across the entire model line. I'm sure the AMG versions depreciate quicker than their base models.

I agree that low demand for the LC right now is not a good thing, but if the trend continues then the LC will not drop so quickly in value. There isn't a surplus of LC's at Lexus dealerships, and more people will be looking for a used one in 3 years. However, scarce pickings are going to result in lots of people searching for the same vehicle, and they'll be willing to pay more to obtain it over the next guy...

Where did I get this info, you ask? I shook my magic 8 ball..
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Old 09-07-18, 02:25 PM
  #20  
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Guys

I have an SC430 and after 16 years ,still luv the car.
snd the beast is solid with 46K on it.

In 4-5 years, if an LC dropped to 50K with say 20K
I would jump on one
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Old 09-07-18, 03:07 PM
  #21  
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The resale prices on LC's seem to be dropping. Numerous low mileage preowned specimens are being offered for under $80K, some CPO.

Last edited by ECL; 09-07-18 at 03:22 PM.
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Old 09-08-18, 05:14 AM
  #22  
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Originally Posted by DRGibbons View Post
You all know leasing is the MOST EXPENSIVE way to finance a vehicle, right? Leasing is just another way to finace with closer to an effective 10%-15% interest rate. Run the figures and you will see. There is a reason that car companies push leasing so enthusiastically. They make more money off of the lease than the actual profit on the vehicle. Kinda like credit cards . . . . . . .

I guess it is a way for people that can't really afford the vehicle to feel like they can . . . . . . .
haha this was funny. Im not going to open a can of worms on this debate but my real evidence LC lease money factor was 1.9%. Maybe you dont have good credit?

Leasing is is appropriate for people that like new cars often. It also eliminates accident and damage depreciation. It also creates a stop loss for excessive depreciation while preserving your ability to capitalize on low depreciate. For example: I leased my IS F the first year in 2008. At the end the buy out was 33k. I bought it off lease, drive it 6 months then sold it for 44k.
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Old 09-09-18, 03:34 PM
  #23  
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Originally Posted by DRGibbons View Post
You all know leasing is the MOST EXPENSIVE way to finance a vehicle, right? Leasing is just another way to finace with closer to an effective 10%-15% interest rate. Run the figures and you will see. There is a reason that car companies push leasing so enthusiastically. They make more money off of the lease than the actual profit on the vehicle. Kinda like credit cards . . . . . . .

I guess it is a way for people that can't really afford the vehicle to feel like they can . . . . . . .
I agree with you that leasing is most expensive, but how is it closer to 10-15%?
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Old 09-23-18, 10:41 AM
  #24  
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Prices on preowned LC 500’s continue to drop, possibly reflecting the imminent release of the 2019 model. There are nine low mileage preowned LC 500‘s priced under $80,000, with the lowest priced one offered for $77,750. If you prefer the CPO version, one is offered for $78,949, another for $79,900. All seem to have clean Carfax, no damage history or unusual service history. One of these days, they may be down to my price range.
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Old 09-24-18, 11:57 AM
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Originally Posted by ECL View Post
Prices on preowned LC 500s continue to drop, possibly reflecting the imminent release of the 2019 model. There are nine low mileage preowned LC 500s priced under $80,000, with the lowest priced one offered for $77,750. If you prefer the CPO version, one is offered for $78,949, another for $79,900. All seem to have clean Carfax, no damage history or unusual service history. One of these days, they may be down to my price range.
Which website are you seeing this info if you dont mind me asking?
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Old 09-24-18, 01:04 PM
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Originally Posted by reposado2 View Post
Which website are you seeing this info if you dont mind me asking?
Cargurus.com
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Old 09-26-18, 10:17 PM
  #27  
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I'm waiting..............


Originally Posted by ECL View Post
Prices on preowned LC 500s continue to drop, possibly reflecting the imminent release of the 2019 model. There are nine low mileage preowned LC 500s priced under $80,000, with the lowest priced one offered for $77,750. If you prefer the CPO version, one is offered for $78,949, another for $79,900. All seem to have clean Carfax, no damage history or unusual service history. One of these days, they may be down to my price range.
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Old 10-25-18, 07:24 PM
  #28  
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According to Cargurus.com, there are now 13 preowned LC500’s offered for sale for less than $80,000, two priced under $75,000. Admittedly, the one under $74,000 has an accident history, but clearly, the pricing is headed downward.
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Old 10-25-18, 07:27 PM
  #29  
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I actually just sold mine to the Lexus dealer I bought it from for $72k, they have it listed for $79k now. It has about 9400 miles on it and the MSRP was $102k
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Old 10-25-18, 08:14 PM
  #30  
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Originally Posted by Thorne View Post
Are there dealers out here (in Cali?) really trying to push this car for $125k? I haven't heard of anyone rolling out for more that $100k fully-optioned at this point... Even fully taxed it wouldn't hit close to $125k?
Mine was $114K out the door with tax, title and license. Fully loaded Performance package with blacked out grill and gloss black 21" wheels.
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