I bought my RX350 2wd with nav and luxury package new back in 2007 for about $42,500 +tax. It has little over 11K miles, in prestine condition. I went to the same Lexus dealer and I asked about the trade-in value. They told me somewhere around $23K. I went to BMW and they said same thing. I know it is a trade-in vakue but my God, these bastards slash almost 50% off the MSRP in about 2 years. These thieves woud then turn around and sell it for $32K. Of course I would never trade it in at this rate. If you want to make quick and dirty bucks, go into Wallstreet, banking industry, become a trial lawyer, or simply work at a car dealer.

 

Where does the thief part come in?
If you sell them the '07, you do so voluntarily, knowing that you could get a higher price if you spent the time and trouble to sell it yourself.
Then the dealer spends up to $5,000.00 to replace and repair things to make the car CPO worthy, and then sells it, not at gunpoint, but to someone willing to pay a negotiated price, which is surely above the trade in price.
This sounds not like thievery, but like the free market at work.

 

Trade-in value is a very shady area and does not cleanly represent how much your car is really worth. Did you, by any chance, look around to see how much the same year vehicle was being offered at that dealer? I am sure, it would have been in the low 30s. Moreover, they might not even have one of those on the lot at all! Used car market is very strong right now: people shop for used cars more than they do for new. So, your car is somewhere in the upper 20s provided it is still in good condition with no body damage or issues. Car dealers are in the business of selling cars. That says it all. Enjoy the car and do not worry about it.

 

at 11k miles, i doubt dealer would even spend 100$ to CPO, ..i am sure they will trun around and sell in the mid 30s. i know because i have spend last 2 weeks lookng at rx350. i had a 04 rx330 fully loaded, went to trade it in, dealer offered me 18k , went to another dealer whithout any negotiation he offered 20k..so it really depends on dealer. they always throw a low number out at first and wait for you to take the bait...

yea new cars do depreciate alot more then used cars everyone knows that.. and should be expected by the users part

 

That's what you call depreciation. It applies to all new cars. You lose x% of the value after you leave the dealer parking lot.

 

That's why I try to buy slightly used cars. You lose a TON when you drive any new car off the lot, not just the RX. Buy a new car, deal with the depreciation. Buy a 1 or 2-year old car and benefit from the sucker who bought it new.

 

Yup, as cold as it is...the sucker who took the hit! Not you!

 

Take a read here and you will see that most luxury brands lose around 20-25% per year over three years.

http://www.theautochannel.com/news/2...03/079403.html

 

As what everyone else said, it's typical. The RX actually keeps it's value if you compare it to the X5 and any of the US SUVs.

 

guys the bottom line is, what you're paying for your new car. If they got you good on the new car they will give you a "better" trade in price. If you got them good on the new car, then you won't get anything for your trade in. Dont let anyone fool you its all a numbers game. Why do you think one of the first questions when you walk into a dealer, is are you trading in a car. I've been in sales for 15years, they don't just ask questions for nothing. If they feel your all about the trade in price, they will make you happy, and get you on the new car. Go into a dealer and ask them how much to trade in your car, then tell them you dont want to buy anything, see if he will give you that price.

 

My own experience is that an "average" car will lost FIFTY percent in 3 years. Japanese tend to lose a bit less and American a bit more. There is not a Lexus ever sold that will command 80% of the original price when resold in 3 years.

 

Also, the "half life" rule is good. Which is that roughly any price you pay for any car, new or used (assuming you pay market value and do not overpay)...the vehicle will be worth half in 3 years. And in another 3 years it will be worth half of that. A $40,000 car will be worth about $20,000 in 3 years and $10,000 in 6 years and $5000 in 9 years and $2500 or so in 12 years. Just a rule of thumb but worth knowing.

 

The NEDA article states the average Lexus depreciates 20% annually over three years. 20/% per year x 3 years = 60%

 

It's hard to generalize in this field. I bought an SC430 in April of '01, when the waiting list was 18 months long. After 9 months I could have sold it for a profit. After two years, it might have been down 10%, and after 3 years it might have been down 20%, at most, but those low rates reflect that the price of new models went up sharply during that period.
At the same time, my brother bought a Cadillac (CTS, which had good reviews), drove it for 2 years and hated it, and it was down 50% when he unloaded it for a new Infiniti.
Generally, a Lexus holds its value far better than most other models because of its reputation for reliability and longevity, but every transaction must take into consideration the miles and condition and history of the vehicle in question.

 

Not exactly. $50,000 Lexus loses 20% first year...now worth $40,000. Loses 20% second year....now worth $32,000....loses 20% third year....now worth $25600....about 50% from the original $50,000 price. Exactly as the "rule of thumb" predicts.