Including depreciation , how much is it costing you to enjoy your LS?
11-10-17, 09:02 PM
#31
The overall cost of ownership for my 2008 LS600hL was considerably higher than the numbers I'm seeing others report here.
I purchased the 600hL in June of 2014 as a CPO car from McGrath Lexus in Chicago. It had 58K miles, and I paid $43K for it (which was a decent deal at the time).
I drove the car lightly and took great care of it for the 3 years I owned it. When I was ready to trade in for a newer model in July of 2017, the 600hL had 83K miles on it and was as clean as the day I bought it. I was offered $18,500 in trade for the car from my Lexus dealer. I cross-shopped the trade-in across a few other dealers and checked NADA, KBB, and Edmunds to find that the true value of the car really was $18,500.
So for my 3 years of ownership, I suffered depreciation of $24,500 (> $8K per year). This was definitely much higher than I had anticipated when I purchased, but I realize I was the "perfect storm" for depreciation (buying at full CPO Retail price and selling at Dealer Trade-in value). The local Lexus dealer still has the car sitting on its lot for sale (4 months later). They are asking $25K, which isn't unreasonable, I suppose, but they haven't had any takers at this price, so it's hard to tell what the actual market will bear for a 10-year old ultra-lux car with aging hybrid batteries.
I'm extremely happy with the Genesis G90 I am now leasing, and am very happy that in 3 years I can walk away with no worries of excess depreciation. I don't really regret owning the 600hL -- it was a fantastic car, and I know you have to "Pay to Play" in this market.
I purchased the 600hL in June of 2014 as a CPO car from McGrath Lexus in Chicago. It had 58K miles, and I paid $43K for it (which was a decent deal at the time).
I drove the car lightly and took great care of it for the 3 years I owned it. When I was ready to trade in for a newer model in July of 2017, the 600hL had 83K miles on it and was as clean as the day I bought it. I was offered $18,500 in trade for the car from my Lexus dealer. I cross-shopped the trade-in across a few other dealers and checked NADA, KBB, and Edmunds to find that the true value of the car really was $18,500.
So for my 3 years of ownership, I suffered depreciation of $24,500 (> $8K per year). This was definitely much higher than I had anticipated when I purchased, but I realize I was the "perfect storm" for depreciation (buying at full CPO Retail price and selling at Dealer Trade-in value). The local Lexus dealer still has the car sitting on its lot for sale (4 months later). They are asking $25K, which isn't unreasonable, I suppose, but they haven't had any takers at this price, so it's hard to tell what the actual market will bear for a 10-year old ultra-lux car with aging hybrid batteries.
I'm extremely happy with the Genesis G90 I am now leasing, and am very happy that in 3 years I can walk away with no worries of excess depreciation. I don't really regret owning the 600hL -- it was a fantastic car, and I know you have to "Pay to Play" in this market.
The only thing I'm angry about is the fact that I was so in love with the idea of owning and L , and I waited so long for one, that when mine came on the market I essentially bought it blind.
Although I didn't overpay in terms of the market value , I know I could of gotten at least $2000 or $3000 knocked off the price if I had taken a closer look at it first before I made my offer.
11-11-17, 09:05 AM
#32
Lexus Fanatic
No matter what you buy (TV, home, car, boat), there will ALWAYS be a better deal that could have been had somewhere. You have to be happy with what you bought and that you didn't go in over your head finance-wise or get a lemon - THAT'S where remorse can be overwhelming. If you enjoy your car and it's not destroying you financially, I wouldn't be worried about it.
11-12-17, 09:55 AM
#33
I was shopping for a 2013-2014 and the wife and I discussed buying a home(that we got a GREAT RATE and really good deal) and with my 2001 LS430 needing some work, I decided to move to a 2007, It was fairly inexpensive, runs nice, in very nice shape and is a pleasure to drive. My monthly note is a LOT less than I would pay on a lease for a new Camry and it will be paid off in a year or 2... I see it not a major depreciation as after 5 years, it wont be worth a lot but, I have had the pleasure of driving this car for that time for very little money. A car is NOT an investment (unless your buying a major specialty model) but, you can cut depreciation to a point by buying a 3-4 year old model, as the BIGGEST depreciation happens in the first 2-3 years of the car, and it levels off..
When the 5 year window is up, I will look towards another car...
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