How Bad is Lexus Depreciation?

How Bad is Lexus Depreciation?

Welcome back to the channel everybody so you want to look at buying a lexus because it’s a great luxury brand but you’re not sure on the depreciation that you might experience well we’re here to tell you guys everything you need to know about lexus depreciation we’re gonna share with you where the optimal time is to buy and used versus new we’re also going to give

You some examples of how much retention value you will experience after 10 years we’re also going to give you some examples and compare it to the industry standard so we all work very very hard for our dollars and we want to stretch our dollars as far as they can go but it’s time you know we’re at that stage in our life where we appreciate a great luxury brand

Like lexus that’s finely crafted and we feel that it’s time to step up and indulge so here we are we’re gonna talk about lexus and make sure that you can stretch and maximize the dollar in a purchase of a lexus so first let’s start off by saying the entire industry averaged out generally sees a depreciation rate of your average car depreciates 20% in the first year

15% in the second year 15 and the third fourth and so on 15% up until you’re at your 10 at which point the car now is sort of hit around 10% of its original msrp 10% you think about that you bought a $50,000 car in 2009 10 years later in 2019 that car on average in industry will only be worth about $5,000 not a worth a whole lot of money so we’re gonna compare

Lexus’s to that industry standard we’re gonna give you some great examples so let’s get moving into that so alexis are not exempt from depreciation in a fairly significant way as well as any other brands and so here we are in 2019 and you want to buy a car maybe you don’t buy that brand new car because everybody knows depreciation hits hard when you buy it new

So the question is what year model do you buy to maximize your benefit do you by 2018 well not really because according to this chart provided by used first com it becomes pretty the older you go the less the car costs but there is also a breaking point it doesn’t just end with the depreciation at what point do you buy in so you maximize the lifespan of that car

Because if you go to old sure you get a low cost car but then you get closer to the end of life for that car and you’ve faced with extensive repair bills for example when you decide to buy a 2018 maybe in 2017 slightly used sure you have the majority of the warrantee you also unfortunately still have the majority of the cost because it’s still new enough a lot of

Times they’re just demos or just a year old with five ten thousand miles and of course the value holds quite strongly so that’s not the optimal place 2016 you’re getting there the truth is folks 2015 is the optimal place right now to get into a market in 2019 today get in that car in about four years of age three to four years of age where that puts you is a place

Where you get the maximum lifespan versus the maximum depreciation so if you’re buying into the marketplace the 2015 model year today in 2019 is the place you want to be it’s gonna give you the maximum value that puts you in a place where you’re likely gonna still have a lot of life left in that car but you’re not paying the majority of the value of that car you

Are in fact in 2015 only going to pay approximately 56% of its original value that is immense savings but if you buy a 2015 often you still have the tail end of some warranty you still have a long bunch of life left in that car and that truly is the hump 2015 currently right now is the year that you want to buy in to the market if you want to maximize your profits

Extend your dollars but get the best value bang for your buck so let’s back all of this up with some examples let’s start with a sporting version and is out any of the f persian cars generally do very well for retention of value but the isf we’ll talk specifically with its glorious high revving v8 and 8-speed automatic transmission that was debuted essentially

In 2007 and released in 2008 to the marketplace it is an awesome machine to drive really really spectacular it was really created to counter the attack by the bmw m3 it did a great job too by the way real performance machine now that car when it was new msrp ranged but the average price for it was about $60,000 u.s. and now scouring the auto trainer doing a broad

Search finding a whole host of different cars around 2008 anywhere from fifty to eighty thousand miles in that range and some kind of times even the higher mile cars are going for similar dollars the average that i found was about twenty five thousand dollars some of course more some of course less and that retention value now because it’s a no wait ten years later

Is holding at 42 percent of its original value that’s almost half of its original value after ten years that’s an exceptional retention a minimal depreciation rate so that was always a good purchase okay so enough about sports maybe you want something more versatile i want an suv how about a 2008 rx 350 great suv not necessarily the more least problematic of the

Lexus is but a very versatile reliable car nonetheless and so here now in 2019 we look back at a car that’s about 10 11 years of age with 50 60,000 miles still relatively low miles and we’re finding them from 15 to $16,000 us which is actually about 42 percent of its original msrp how is that for retention that to me sounds like it’s also seen minimal depreciation

Another safe bet okay scrolling right along maybe you want something a little different a little more luxury how about an ls 460 those have a lot of luxury going for a lot of features a lot of comfort really one of their mainstream cars that people love to just cruise in so how much is it for an ls 460 let’s start off by saying they average the msrp back in 2008

Of about $65,000 the range was 62 to 70 mm but at 65 thousand they were already becoming quite a hefty price tag for one of the now generally as you know particularly in the bmw and benz and audi worlds often what happens in a lot of the premium luxury car brands is the more expensive and higher-end flagship type cars when new they end up seeing much much heavier

Depreciation along the way they become less desirable because of the extensive maintenance costs associated with them but that is not entirely true in the ls 460 where you can find a used one for about twenty two to twenty four thousand dollars u.s. still today for a 2008 versus that sixty five thousand dollar price tag when it was new what is that all translate

To how about thirty seven percent retention value after ten years still not bad considering the market value averages ten percent at thirty seven percent it’s still holding over a third of its original value okay you want one more okay how about the 2008 lexus es350 so this is slightly down scale from the ls models the es for example retail from a range of about

Thirty four thousand to about fifty thousand dollars new in us funds so the average is about forty thousand bucks but that being said used with reasonable miles again fifty to seventy thousand mile range lots and lots of them for about fifteen grand so fifteen grand out of the original four ii put c’s at a retention value of about thirty seven percent not bad again

Over a third of its original msrp not bad for car ten years of age still you know there will be a fair amount of reliability built into these cars as lexus generally are fairly reliable you know that you can buy a car like that with peace of mind even if you decide to hold onto it for ten years so you buy a 2015 now in 2019 and you hold on to that for another six

Or seven years that takes you to the ten year mark after that point it’s a wash it doesn’t matter depreciation doesn’t really play a factor anymore but you know that you haven’t lost a lot of money from 2015 2008 in a seven-year span you may only shave twenty five percent of its value original value not bad for about a seven year run now is it so all in all lexus

Proves to be a very great bran we know they’re reliable we know they’re well made and they’re somewhat sought-after if you pick up an up there if you’re picking up the right model at the end of the day lexus is a great brand and if you want a good reliable car that hasn’t suffered extreme depreciation the lexus brand is a great place to start thanks again everybody

I’m glad you really joined along i hope you enjoyed the video if you enjoyed the video please drop a line below give it a thumbs up share it on social media and with your friends and again of course if you’re not a subscriber be sure to hit that subscribe button down below as well as that notification bell let you guys know when the next great video is out hope to

See you guys soon love to catch on the next time see ya bye bye

Transcribed from video
How Bad is Lexus Depreciation? By ExoticCar PlayPlace