Resale Value
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Pole Position
Joined: Oct 2002
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From: Pennsylvania
Resale Value
I kind of do a “self lease” mental accounting thing with my cars. What do you think my new $65755 RX350h will be worth in 3 years, 36K miles, in perfect shape? I’m thinking 55%, or about $36,000, assuming no big additional inflation spike).
Instructor
Joined: Aug 2022
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From: NY
Well, my opinion is - these recent Tesla price cuts to the Model Y - are going to suppress the resale value of all cars (ICE and otherwise) in that mid-size SUV segment. The ripple effect of Tesla cutting prices in a segment, is going to work its way through the resale market. Is someone going to pay $36K for a 3 year old Lexus when 3 years from now, Tesla may be selling a new Model Y for < $45K (with the tax credit)? Any buyer would be thinking twice about that deal.
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Joined: Oct 2002
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From: Pennsylvania
You do make a good point. I will say that this was my thinking about getting the 36MPG hybrid versus the 22 MPG ICE car. In a few years the resale for the ICE might be way worse than the hybrid.
In the real world, I don't understand who would buy the ICE car when the hybrid retails for the same price. I get it that eager beavers will buy the ICE car now, to get the "new thing". But once the newness settles down, I'm almost certain that the hybrid will fetch a lot more than the ICE car, even if the sticker prices are the same. The stickers will become fiction again...they'll have to offer incentives (price cutting) on the ICE car.
In the real world, I don't understand who would buy the ICE car when the hybrid retails for the same price. I get it that eager beavers will buy the ICE car now, to get the "new thing". But once the newness settles down, I'm almost certain that the hybrid will fetch a lot more than the ICE car, even if the sticker prices are the same. The stickers will become fiction again...they'll have to offer incentives (price cutting) on the ICE car.
Last edited by daryll40; Jan 14, 2023 at 07:59 AM.
Instructor
Joined: Aug 2022
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From: NY
I am sticking with the ICE but plan to keep it many years. By then, either this EV "thing" will see better cars materialize that are easer to live with as primary/sole vehicles, or ICE will survive in the marketplace because EV penetration stalls out and can't get past 40%.
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Joined: Oct 2002
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From: Pennsylvania
I am sticking with the ICE but plan to keep it many years. By then, either this EV "thing" will see better cars materialize that are easer to live with as primary/sole vehicles, or ICE will survive in the marketplace because EV penetration stalls out and can't get past 40%.
Thread Starter
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Joined: Oct 2002
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From: Pennsylvania
I am sticking with the ICE but plan to keep it many years. By then, either this EV "thing" will see better cars materialize that are easer to live with as primary/sole vehicles, or ICE will survive in the marketplace because EV penetration stalls out and can't get past 40%.
Pit Crew
Joined: Jan 2023
Posts: 183
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From: IL
You do make a good point. I will say that this was my thinking about getting the 36MPG hybrid versus the 22 MPG ICE car. In a few years the resale for the ICE might be way worse than the hybrid.
In the real world, I don't understand who would buy the ICE car when the hybrid retails for the same price. I get it that eager beavers will buy the ICE car now, to get the "new thing". But once the newness settles down, I'm almost certain that the hybrid will fetch a lot more than the ICE car, even if the sticker prices are the same. The stickers will become fiction again...they'll have to offer incentives (price cutting) on the ICE car.
In the real world, I don't understand who would buy the ICE car when the hybrid retails for the same price. I get it that eager beavers will buy the ICE car now, to get the "new thing". But once the newness settles down, I'm almost certain that the hybrid will fetch a lot more than the ICE car, even if the sticker prices are the same. The stickers will become fiction again...they'll have to offer incentives (price cutting) on the ICE car.
Makes no sense to me but there it is. Easy to do on Acura because the advance is the same on both. No stand alone options.
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Joined: Oct 2002
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From: Pennsylvania
I just went to KBB and priced out trade in value on my low mileage 17 Acura MDX sport Hybrid. The hybrid listed for $1500 more when new. Right now, trade in is $100 less than the straight ICE version. Everything else being the same. Advance model.
Makes no sense to me but there it is. Easy to do on Acura because the advance is the same on both. No stand alone options.
Makes no sense to me but there it is. Easy to do on Acura because the advance is the same on both. No stand alone options.
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Pit Crew
Joined: Jan 2023
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From: IL
There were 3 trim levels. Standard, Tech, Advance. Advance was the top. As I said, there were no stand alone options. If you wanted the 360 camera, you bought the Advance. You couldn’t buy a lower trim and add it. Not from the factory.
Pit Crew
Joined: Dec 2022
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From: CA
I think hybrid is where we end up for most people. The new California all EV by 2035 barely mentions that plug-in hybrids are allowed as long as they can go 50 miles on the electric motor only. They will be limited to 20% of sales, which will make them more expensive, but that should also mean there will be more options available. That is my sweet spot for moving to a plug-in hybrid. It would allow me to do 3 or more days on a charge per my typical weekday city driving now. Getting older I see my miles going down. I also love the option of choosing battery/gas, battery only or gas only, letting me decide the best way to maximize MPG. I think this is the direction Toyota is going, with the non-plug-in hybrids as good interim step.
Driver
Joined: Aug 2003
Posts: 96
Likes: 32
From: Maine
As another data point (in Canada) I just looked up the trade-in value on my 2016 Lexus RX450h. The 450h trade-in value (Canadian Black Book) came in $1000 LESS than an identically optioned / mileage RX350.
It makes no sense given the huge difference in price in 2016 (In Canada the 450h was $7000 more than the 350).....
It makes no sense given the huge difference in price in 2016 (In Canada the 450h was $7000 more than the 350).....
Advanced
Joined: Jul 2013
Posts: 714
Likes: 356
From: Vermont
I made an interesting find on Lexus prices. I bought a 2013 RX that had a sticker price of $44k (just found it cleaning out my files). Ten years later, the MSRP of a similarly equipped RX is only $55k....pretty reasonable, only a 20% bump in 10 years. Exchange rates could well be a factor, the Canadian dollar is pretty low right now (I'm assuming there is still Canadian assembly).
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