Your advice please
02-28-17, 04:45 AM
#1
Pit Crew
Thread Starter
Your advice please
Ever since I traded my 115,000 miles 2007 LS460 for a Cadillac XTS Luxury I missed my LS. After 15 months thinking of trading it in on a low mileage 2011 LS. ShouldI ? Only reason I hesitate id I am upside down on the XTS and have to worry a lot more then the selling price of the LS
02-28-17, 05:29 AM
#2
Lexus Fanatic
How upside down are you? How good a deal is the LS? Can you pay the negative equity off in cash, or some of it at least?
Being in a car you dislike is tough, if the negative equity from the XTS doesn't make it so that the LS payment is too high or long, go for it. Buy gap insurance.
Being in a car you dislike is tough, if the negative equity from the XTS doesn't make it so that the LS payment is too high or long, go for it. Buy gap insurance.
02-28-17, 05:43 AM
#3
Former Sponsor
You asked for advice, here's mine - Stop trading cars in. Put your car up for sale, get thousands more value selling it to someone. But be patient having to wade through idiots and scammers. Then, find the vehicle you want, negotiate it and buy it. No more trading in. My $0.02 worth. If you don't think you can do that because you will be out a vehicle for the time between, then find a little cheap hooptie you can drive for a short time in between and buy it first. Then once you've bought the vehicle you prefer, sell the hooptie. You'll probably get all your money back out of that. And hoopties sell quick.
As for your current situation, I think I would tolerate the caddy until it could be sold for AT LEAST what you owe. And, I mean SOLD, not traded in. I have close relatives that trade-in (I can't talk sense to them ... my mother-in-law is one of them), and they get their vehicles legally stolen from them. It's an absolute shame how a dealer treats a customer. And customers take that sh-- every single day.
Jason
As for your current situation, I think I would tolerate the caddy until it could be sold for AT LEAST what you owe. And, I mean SOLD, not traded in. I have close relatives that trade-in (I can't talk sense to them ... my mother-in-law is one of them), and they get their vehicles legally stolen from them. It's an absolute shame how a dealer treats a customer. And customers take that sh-- every single day.
Jason
02-28-17, 05:52 AM
#4
Lexus Fanatic
I don't sell cars. Quite frankly...it's just not worth my time or energy. I am however an educated consumer and I demand a fair trade in value, which I get. I get a few thousand dollars less than if I sell them myself, but all of my time and energy isn't worth that few thousand dollars...and I certainly can't be bothered to be without a car for any time.
As for waiting to where the XTS is no longer upside down, issue is the huge depreciation on that vs the LS460 he's considering. The other part of it is upside down is upside down. If he transfers the negative equity to the LS on a similar financing scenario...what's the difference? As long as he keeps that car and doesn't keep a snowballing negative equity scenario going from car to car, the negative equity is cured with time on the LS just like it is on the XTS, and he's driving a car he likes and that isn't depreciating as fast.
As for waiting to where the XTS is no longer upside down, issue is the huge depreciation on that vs the LS460 he's considering. The other part of it is upside down is upside down. If he transfers the negative equity to the LS on a similar financing scenario...what's the difference? As long as he keeps that car and doesn't keep a snowballing negative equity scenario going from car to car, the negative equity is cured with time on the LS just like it is on the XTS, and he's driving a car he likes and that isn't depreciating as fast.
02-28-17, 07:26 AM
#5
Former Sponsor
As for waiting to where the XTS is no longer upside down, issue is the huge depreciation on that vs the LS460 he's considering. The other part of it is upside down is upside down. If he transfers the negative equity to the LS on a similar financing scenario...what's the difference?
02-28-17, 07:56 AM
#6
Lexus Fanatic
Trade-in values can be played with. "My dealer gave me 5 thousand more than the book value!". Yeah....and he charged you 5 thousand more for the car you bought than you could have negotiated if you paid cash with no trade.
So....negotiate the best price you'll pay for the car and tell the dealer there's no trade-in involved. Then, when you're set on the price, tell them you've reconsidered and would like to negotiate the trade-in. This is where things get interesting and you see the real deal being offered.
The only advantage to trading in is the tax break you get and avoiding hassles of selling a car to tire kickers and test pilots.
So....negotiate the best price you'll pay for the car and tell the dealer there's no trade-in involved. Then, when you're set on the price, tell them you've reconsidered and would like to negotiate the trade-in. This is where things get interesting and you see the real deal being offered.
The only advantage to trading in is the tax break you get and avoiding hassles of selling a car to tire kickers and test pilots.
02-28-17, 09:36 AM
#7
Racer
XTS is pretty cool. My father has a Blue/black Xts V Sport platinum with stock 20s.
I think you have to do a little work and make the "divorce" from the XTS a painless as possible. That might mean keeping it for a while till you can do a private sale or find a deal of the century on an LS460 and the get a fair trade on the XTS.
Private sales can be tricky but I have been successful at selling all of my last 8 cars and recouping nearly all of what I paid for them on average after 2 years of ownership. It's all about presentation, a fully detailed car really helps with a sale/trade. My cars usually have about 10 coats of wax on them and look they are in show room condition.Take nice pictures and detailed write up, throw it on Craigslist or where ever and see what happens. Prepare for many low ball offers. Buyers think that paying all cash will somehow make you jump to the offer. Eventually you may get a serious offer and go from there.
I think you have to do a little work and make the "divorce" from the XTS a painless as possible. That might mean keeping it for a while till you can do a private sale or find a deal of the century on an LS460 and the get a fair trade on the XTS.
Private sales can be tricky but I have been successful at selling all of my last 8 cars and recouping nearly all of what I paid for them on average after 2 years of ownership. It's all about presentation, a fully detailed car really helps with a sale/trade. My cars usually have about 10 coats of wax on them and look they are in show room condition.Take nice pictures and detailed write up, throw it on Craigslist or where ever and see what happens. Prepare for many low ball offers. Buyers think that paying all cash will somehow make you jump to the offer. Eventually you may get a serious offer and go from there.
Trending Topics
02-28-17, 01:11 PM
#8
Lexus Test Driver
I considered the XTS before I got my 10 LS, the 14 XTS I looked at was technologically superior, the V6 was "compliant" but the XTS overall didn't offer the refinement of the LS (LS was cheaper too, which my wife was happy about).
Overall, I would recommend exploring what the numbers look like as a trade-in. And find the right LS to get into; finding one on a good deal may help structure the loan to ensure you're decently positioned. Ultimately I wouldn't want to make payments on a car I was dissatisfied with but the only way out of this is not getting yourself in a worse financial position. Purely my opinion.
Overall, I would recommend exploring what the numbers look like as a trade-in. And find the right LS to get into; finding one on a good deal may help structure the loan to ensure you're decently positioned. Ultimately I wouldn't want to make payments on a car I was dissatisfied with but the only way out of this is not getting yourself in a worse financial position. Purely my opinion.
02-28-17, 02:17 PM
#9
Pole Position
I have to agree ...although I have traded in and sold cars to private sellers these days dealers really go by auction prices, that is not really fair to people like us who really keep their car in top shape. I almost traded my LS in for newer LS a week ago but the dealer was giving me peanuts for my car and they weren't bulging on their price.. I know for a fact they would just turn the my traded car around and list it on their dealership at-least $6K more without doing a single thing to the car.
You asked for advice, here's mine - Stop trading cars in. Put your car up for sale, get thousands more value selling it to someone. But be patient having to wade through idiots and scammers. Then, find the vehicle you want, negotiate it and buy it. No more trading in. My $0.02 worth. If you don't think you can do that because you will be out a vehicle for the time between, then find a little cheap hooptie you can drive for a short time in between and buy it first. Then once you've bought the vehicle you prefer, sell the hooptie. You'll probably get all your money back out of that. And hoopties sell quick.
As for your current situation, I think I would tolerate the caddy until it could be sold for AT LEAST what you owe. And, I mean SOLD, not traded in. I have close relatives that trade-in (I can't talk sense to them ... my mother-in-law is one of them), and they get their vehicles legally stolen from them. It's an absolute shame how a dealer treats a customer. And customers take that sh-- every single day.
Jason
As for your current situation, I think I would tolerate the caddy until it could be sold for AT LEAST what you owe. And, I mean SOLD, not traded in. I have close relatives that trade-in (I can't talk sense to them ... my mother-in-law is one of them), and they get their vehicles legally stolen from them. It's an absolute shame how a dealer treats a customer. And customers take that sh-- every single day.
Jason
02-28-17, 03:19 PM
#10
02-28-17, 05:31 PM
#12
Missing your '07 LS? I'll would probably miss my LS if I got something newer. Nothing drives like the 460 and its just a well built and comfortable luxury car.
03-01-17, 10:18 AM
#13
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!
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!
Last edited by droclex; 03-01-17 at 02:20 PM.
03-01-17, 02:58 PM
#14
What year is the XTS? Put it for sale now on Craigslist/Cars/Autotrader. It may take 2-3 months to sell a high end vehicle at the Private Party Price, no matter the brand. You'll get more this way (obviously) that trading it in. But, if the right car comes along at the right price and you just absolutely must have it, then you can always take the hit on the XTS - you'll be in the LS for many years and should be able to pay it all off without too many worries.
03-08-17, 03:58 AM
#15
Pit Crew
Thread Starter
My XTS is a 2014 with 34K on it. I have sold cars in the past. Good advice!
What year is the XTS? Put it for sale now on Craigslist/Cars/Autotrader. It may take 2-3 months to sell a high end vehicle at the Private Party Price, no matter the brand. You'll get more this way (obviously) that trading it in. But, if the right car comes along at the right price and you just absolutely must have it, then you can always take the hit on the XTS - you'll be in the LS for many years and should be able to pay it all off without too many worries.