Originally Posted by droclex

I had an XTS for a short while and think that there's a lot to like about the car: somewhat unique road presence, nice looking and well-appointed interior, enormous trunk, extremely generous back seat, good ride quality (with the 19's) and MRC, runs on 87 and is reasonably quick/nimble, relatively inexpensive to insure and fix. I found the build quality to be hit or miss and even though I MUCH prefer the LS, the XTS is not the worst car to be stuck with. But I know where you are coming from: there is no substitute for the best. Another way to look at it: if you're going to be upside down on a car, it might as well be one that you love (within reason and your means)..

So, if you really find yourself miserable and absolutely can't live with the XTS any longer, I would continue paying it down as much as possible while looking for the right LS replacement - as a long term project. IMHO, effectively preparing the XTS for sale (either trade-in or outright $) means keeping it pristine and showroom form, as much as you can. There's a somewhat of a demand for them here in Chicago as they often are used for livery service, but the bottom line is that you're going to get many low-ball offers from dealers and private buyers alike. I would lean toward trading in because an outright sale will mean more immediate money out of your pocket if you are underwater on the loan. The trade-in option might be more appealing because you could net the tax savings and you wouldn't have to fork over that negative equity right away; you can just roll it over into a car you actually want to own. Sales tax in my county is 10.25%, so it ends up being a significant sum.

As you market the XTS, know definitively what it is worth by averaging out KBB, Edmunds, and NADA car estimates (trade-in amount and sale amount), accurately factoring in condition, mileage, and options; stick to those values. Remember, you already have a good car, so take your time! Don't let low-ballers discourage you and don't settle for manheim auction value, though that is what most dealers likely will offer (at first). A great scenario for you would be to find a Caddy dealer selling a used LS. They may offer a little more than a Lexus dealer, but it is no certainty. Either way, let dealers appraise the car left and right. Not the most fun activity, but it will be educative. Get a free carmax appraisal; it's painless, but get ready to be low-balled. A simple, "thanks for your time" and walk away, goes a long way. Put it up on craigslist with great photos. Get ready for a parade absurd offers and requests, but you never know. Your price might be the sweet spot between market value and trade-in value for an eager buyer.

Overall, a reasonable trade-in allowance and/or offer will eventually come along, but the tricky part will be the wait AND finding the right LS at the right price. I notice that LS prices in the Midwest are inflated 10-20%, especially if CPO or still under warranty. If possible, expand your search as much as you can and don't be afraid to orchestrate a deal over email, introducing your XTS via a description and pictures for a dealer that might be several hours away.

Whatever you decide to do, I wish you the best of luck!