SnowDale Posted August 8, 2005 Share Posted August 8, 2005 A buddy has had a RX400H for a couple of months, and he's getting rid of it. It's too small for what he needs, and it's too "nice". He's getting a Chevy Tahoe to replace it. He's offered it to me, and I was wondering what this group thought would be a reasonable price for a used RX400H? It's got the Mark Levinson stereo, no rear seat DVD, but he did put in satellite radio. About 4000 miles on the odometer. I've poked around and there aren't too many used ones on the market, so I don't have much information on what to offer him for it. Quote Link to comment Share on other sites More sharing options...
lexus411 Posted August 8, 2005 Share Posted August 8, 2005 the car stickered out for about $50,000 and about another $500 for the satellite radio. So thats $50,500. He should have gained a $2000. tax break ($48,500} then deduct about 4 months usuage and depreciation ($2500} $46,000. That basically a $1000 or so below what it would cost you for a new and gaining the tax break Quote Link to comment Share on other sites More sharing options...
katzjamr Posted August 9, 2005 Share Posted August 9, 2005 For the tax year 2005 there is a 400h 2000.00 hybrid tax deduction. I dont think it is a straight dollar for dollar deduction as is true for the folks in 2006 covered under a different tax law. (BTW regarding 2006 there is a cap on the amount of cars per manufacturer that will qualify for a tax deduction, i.e. since Toyota makes the majority of hybrids they will run up against the cap and not be able to have every car qualify for a deduction.) Getting back to 2005, it iis my understanding that a percentage of the $2,000 will be deducted. Most SUV's lose 25% or more when u drive them off the lot especially in this day of high and going higher gas prices. Lexus probably retains more than the average but i think $45,000 is generous. In my state you will have to pay tax and license all over again when you transfer the title. I guess one way to do it is to ask a dealer how much he would get to take it back. I bet it we will be surprised, and it will be closer to 40K to just walk away from it. Quote Link to comment Share on other sites More sharing options...
uthorns1976 Posted August 9, 2005 Share Posted August 9, 2005 (edited) the car stickered out for about $50,000 and about another $500 for the satellite radio. So thats $50,500. He should have gained a $2000. tax break ($48,500} then deduct about 4 months usuage and depreciation ($2500} $46,000. That basically a $1000 or so below what it would cost you for a new and gaining the tax break ← Keep in mind that the "tax break" is a tax DEDUCTION of up to $2,000, not a tax CREDIT. So, the amount of tax savings the person gets depends on what bracket he/she is in. Assuming full $2,000 deduction, 25% bracket = $500 savings on taxes. Also, if you buy it, you'll have to pay the sales tax on the purchase price when you register it. That's another 6.25% which, in this case, is a lot of money. Assuming the vehicle has heated seats and the Levinson, the sticker is $50,705. If no heated seats, deduct $665. The biggest discount I have heard of is $2,000 off sticker on a new one. I agree with katz...$45,000 would be generous. Personally, I would offer $45000/1.0625 = $42,350. Then, you'd be in the vehicle for $45,000 after paying the sales tax. I think that would be a good deal for you and the seller in my opinion. If he traded the vehicle in and got $40,000 for it, he would also save 6.25% sales tax on the deal. $40,000 x 1.0625 = $42,500. Based on that, adjust your offer up to $42,500. I'm not in the car business so this is just my personal opinion FWIW. Perhaps LexKid will post a response. He traded his 400h for a GS so he may have a good feel for the vehicle's value. Wonder why he bought the 400h in the first place???? 2006 Lexus RX400h Base price - $49,060 - Lexus DVD Rear-Seat Entertainment System (RSES) (includes two pairs of wireless headphones [2]) - $1,840 [3] - Heated Front Seats with Rain-Sensing Wipers - $665 [3] - Mark Levinson® [4] 11-speaker, 210-watt [5] Premium Audio System with in-dash, single-feed, six-disc CD changer - $980 Edited August 9, 2005 by uthorns1976 Quote Link to comment Share on other sites More sharing options...
lexus411 Posted August 9, 2005 Share Posted August 9, 2005 very tough car to purchase. No matter even if the dealer offers him $42,000 he still picks up over $3000 in tax savings by trading it in. Quote Link to comment Share on other sites More sharing options...
uthorns1976 Posted August 9, 2005 Share Posted August 9, 2005 very tough car to purchase. No matter even if the dealer offers him $42,000 he still picks up over $3000 in tax savings by trading it in. ← Given that he's buying a GM vehicle, I doubt the GM dealer's going to want the Lexus on his used car lot. He'll probably wholesale it. Wholesalers aren't very generous so $40,000 might be top dollar. Who knows?? Like I said before, in Texas the sales tax on vehicles is 6.25%. So, a $42,000 offer would equate to $44,625 with the tax savings. Perhaps you could work a deal whereby the current owner trades the 400h in and you buy it from the dealer for the trade-in price plus sales tax??? I have done that in the past. It's a win-win. The guy trading in the vehicle saves the sales tax and you get a good price. The dealer may charge a nominal fee for handling the paperwork, perhaps $50. By the way, snowdale, are you interested in the 400h?? Have you driven it?? What color exterior/interior?? Quote Link to comment Share on other sites More sharing options...
SnowDale Posted August 9, 2005 Author Share Posted August 9, 2005 Yes, I have driven it around the block a little bit. It's a black exterior, black interior. Not my ideal choice, but it's workable. He was going to let me borrow it for a couple of days so that I could see what my "real world" mileage is. It's been great reading the mileage post here. "Your actual mileage may vary" sound accurate. Last week, he said that he needed $42K for it. Now he's having second thoughts. He doesn't want to take that big a hit for only a few months driving. I'll take his temperature next week and see. Quote Link to comment Share on other sites More sharing options...
katzjamr Posted August 9, 2005 Share Posted August 9, 2005 Two things, black on black is great looking and a bear to maintain. Also alot can happen to a vehicle in 4000 miles. Take a close look at the car, at 1,800 miles and trying to be as careful as I have been with any vehicle in my life, i have a tiny rock chip in the windshield, some marks on the interior that dont want to clean off , the wear on the tires of course, one door scratch from i dont know where and a speck on the taillight that is a mystery. What i dont understand about your friend is he knew the size of his family and his vehicle requirements before he purchased the car, and now the 400h is too small??. I drove a Tahoe for three weeks while my exploder was being repaired and its a heavy boat of a vehicle, and not fuel efficient, never mind GM reliability and other than onstar its not very advanced either. Take your friend up on driving the car for a few days that is a great way to get to know it. Offer him 42,000 and let him try to sell it to someone else and get the first right of refusal in case he is offered more money. You also will need to pay to transfer the warranty. In this climate of gas costs it will be interesting to see the resale value of any big suv once ur friend drives that off the lot. Just my humble opinion Quote Link to comment Share on other sites More sharing options...
SW03ES Posted August 9, 2005 Share Posted August 9, 2005 You don't need to pay to transfer a factory warranty... Quote Link to comment Share on other sites More sharing options...
uthorns1976 Posted August 9, 2005 Share Posted August 9, 2005 You don't need to pay to transfer a factory warranty... ← In Texas, a black vehicle is hot, hot, hot. Black on black is going to be even more so. Have the front side windows been tinted?? I think $42K is a fair price. If, as I said in an earlier post, if he could get the dealer to show the vehicle as a trade-in and then sell it to you at the trade-in price, you would both win. Some dealers will do it, some won't. For what it's worth, my brother has had his 400h since 7/1. His previous vehicle was, interestingly enough, a Tahoe with 78K miles. He drives a lot so he needs decent gas mileage. He's tickled to death with the mileage he gets from the 400h...consistent mid-20s in 100 degree temps. with A/C going all the time. His vehicle is black with ivory interior. I haven't seen a black interior but it's gotta' be better than the ivory or silver. They are too light in my opinion and show all the dirt. The 400h isn't perfect but it's a very nice car and the engine is very powerful. I drove the vehicle home from the dealership, a 3.5 hour drive. I was very surprised just how powerful it is and the ride was very smooth on Michelin tires. Since the vehicle you are considering is black, I assume it has Michelins. Others have Goodyear Eagles. I'm not a fan of Michelins but, as I said, the ride is smooth. What type of satellite radio did the guy install...VAIStech??? Was it installed by the Lexus dealer??? Quote Link to comment Share on other sites More sharing options...
LexKid630 Posted August 10, 2005 Share Posted August 10, 2005 Last month the Rx400h i had ordered more than a year ago, finally arrived. I kept it for a while, but didn't really fall mich in love with it. So i decided it was best for me to trade it in before i started to cry... I wanted to trade it in for an 05 GS430 since i don't care much for the new 06's. I called and e-mailed more than 12 dealers in New England to see if they had any VERY low mileage 05 GS430's in the color etc. that i was looking for. The following day i got a call from some used car dealer in NH that had an 05 GS430 with only 113 miles, not "used" since it was never owned by a private party supposedly... First i "told" them that i wasn't doing a trade of any kind. They were selling the GS430 for $47,580, and i got them down to $46,600. Then at this point i told them that i "could" trade in my car. Then they asked what it was and i told them it was a 2 week old Rx400h, which i purchased for $53,xxx, and that it only had 900 miles on it. After the trade i only had to pay them $800. That means they gave me....$45,800 for the rx400h. And i have NO idea about a $2,000 tax reduction I didn't even know i got one to begin with!!?? The Rx400h was neptune blue mica, had the ivory interior (well a black dashboard and doors etc ), navigation, DVD, rear camera i think? ...didn't even use any of these i only had it for 2 weeks. I'm much happier with my GS430. It has everything the 400h had and MORE. It's just my opinion though...don't wanna make any more enemies here LOL :P Quote Link to comment Share on other sites More sharing options...
uthorns1976 Posted August 10, 2005 Share Posted August 10, 2005 (edited) Last month the Rx400h i had ordered more than a year ago, finally arrived. I kept it for a while, but didn't really fall mich in love with it. So i decided it was best for me to trade it in before i started to cry...I wanted to trade it in for an 05 GS430 since i don't care much for the new 06's. I called and e-mailed more than 12 dealers in New England to see if they had any VERY low mileage 05 GS430's in the color etc. that i was looking for. The following day i got a call from some used car dealer in NH that had an 05 GS430 with only 113 miles, not "used" since it was never owned by a private party supposedly... First i "told" them that i wasn't doing a trade of any kind. They were selling the GS430 for $47,580, and i got them down to $46,600. Then at this point i told them that i "could" trade in my car. Then they asked what it was and i told them it was a 2 week old Rx400h, which i purchased for $53,xxx, and that it only had 900 miles on it. After the trade i only had to pay them $800. That means they gave me....$45,800 for the rx400h. And i have NO idea about a $2,000 tax reduction I didn't even know i got one to begin with!!?? The Rx400h was neptune blue mica, had the ivory interior (well a black dashboard and doors etc ), navigation, DVD, rear camera i think? ...didn't even use any of these i only had it for 2 weeks. I'm much happier with my GS430. It has everything the 400h had and MORE. It's just my opinion though...don't wanna make any more enemies here LOL :P ← Be sure your accountant takes the (up to) $2,000 tax deduction on your 2005 Form 1040. You earned it by purchasing the vehicle. The deduction can be taken right on the 1040. So, those who don't itemize can take it also. I agree with you on the black dashboard. But, that's just my opinion. No more bashing of the vehicle by me. Edited August 10, 2005 by uthorns1976 Quote Link to comment Share on other sites More sharing options...
SnowDale Posted August 10, 2005 Author Share Posted August 10, 2005 What i dont understand about your friend is he knew the size of his family and his vehicle requirements before he purchased the car, and now the 400h is too small??. ← My buddy is a bit impulsive. He wanted a new car, and he was able to get into the 400H pretty quickly, and the anticipation of getting some new technology and better gas mileage, and he was hooked. He owns a couple of bars, and was soon complaining about all the stuff he hauls back and forth between them, and that the 400H just didn't have enough room for his stuff. He also commented that the leather was "too soft" and "too nice" for him. I think he's more of a cloth seat kind of guy. So, as of now, the potential deal is off. I'll have lunch at his place next week, and by then he may be throwing me the keys and telling me to take it off his hands. :) Quote Link to comment Share on other sites More sharing options...
katzjamr Posted August 10, 2005 Share Posted August 10, 2005 Thanks, snow that makes more sense. In sales i also carry product, pick up and deliver items and was used to a more rough and tumble interior. Now with the 400h it takes some planning before i just throw stuff in the back. Also his business pays for the vehicle so he has some help with the cost of a less fuel efficient truck. Personally i was ready for more comfort and fuel economy, i have other trucks to carry big stuff, so the 400h works fine. I wonder if some patrons or employees in the bar are ribbing him about this purchase. I also see some 400h keys coming your way soon. Good luck. Quote Link to comment Share on other sites More sharing options...
SnowDale Posted August 11, 2005 Author Share Posted August 11, 2005 I just heard from my buddy. His 400H got keyed last night at one of his bars. Right down the driver's side. :cries: It's at the Lexus body shop getting repaired. I told him that it was jinxed and he needed to get rid of it quickly. :P Quote Link to comment Share on other sites More sharing options...
400h4me Posted August 11, 2005 Share Posted August 11, 2005 I just heard from my buddy. His 400H got keyed last night at one of his bars. Right down the driver's side.:cries: It's at the Lexus body shop getting repaired. I told him that it was jinxed and he needed to get rid of it quickly. :P ← SnowDaleI'm very sorry to hear that! I guess when someone has a new car, there always is the chance that someone will exhibit indignant displeasure. I hope that it wasn't caused by something else, like talking with some guys girlfriend, wife, etc. Whenever I have gone to a bar, there is always some guy looking for any excuse to get even with "whatever"! Some are just angry for no reason! I knew which bars to stay out of. Sorry for your friends loss!!!!!!! Quote Link to comment Share on other sites More sharing options...
LexKid630 Posted August 12, 2005 Share Posted August 12, 2005 I just heard from my buddy. His 400H got keyed last night at one of his bars. Right down the driver's side.:cries: It's at the Lexus body shop getting repaired. I told him that it was jinxed and he needed to get rid of it quickly. :P ← SnowDaleI'm very sorry to hear that! I guess when someone has a new car, there always is the chance that someone will exhibit indignant displeasure. I hope that it wasn't caused by something else, like talking with some guys girlfriend, wife, etc. Whenever I have gone to a bar, there is always some guy looking for any excuse to get even with "whatever"! Some are just angry for no reason! I knew which bars to stay out of. Sorry for has lost!!!!!!! ← I really hate it when people damage other people's property...especially their cars. I have never been keyed, but i can imagine how bad it must make ya feel. My wife's car got keyed, she didn't really care though LOL Quote Link to comment Share on other sites More sharing options...
400h4me Posted August 12, 2005 Share Posted August 12, 2005 I just heard from my buddy. His 400H got keyed last night at one of his bars. Right down the driver's side.:cries: It's at the Lexus body shop getting repaired. I told him that it was jinxed and he needed to get rid of it quickly. :P ← SnowDaleI'm very sorry to hear that! I guess when someone has a new car, there always is the chance that someone will exhibit indignant displeasure. I hope that it wasn't caused by something else, like talking with some guys girlfriend, wife, etc. Whenever I have gone to a bar, there is always some guy looking for any excuse to get even with "whatever"! Some are just angry for no reason! I knew which bars to stay out of. Sorry for your friends loss! ← I really hate it when people damage other people's property...especially their cars. I have never been keyed, but i can imagine how bad it must make ya feel. My wife's car got keyed, she didn't really care though LOL ← Quote Link to comment Share on other sites More sharing options...
SnowDale Posted August 26, 2005 Author Share Posted August 26, 2005 Well, just to revive this old topic.... My buddy had decided again that the Lexus is too nice for him, he wants a Tahoe that he can just abuse. So, he's let me borrow it for a couple of days. I have it now. The interior was gray, not the black that I thought it was earlier. It does have the Mark Levinson stereo and the heated front seats (a real plus here in Houston. :) ), and he has XM satellite radio installed. After having it, it does drive pretty nicely, but it does surprise me sometimes when the motor kicks on or off. I like all the luxury features it comes with, and it does get up and go when you stomp on it. The deal breaker is that the gas mileage isn't as high as I would like. I've been getting 26mpg on my 40 mile commute, which is better than the 20mpg that I get now with my daily driver. He also said that he's going to want $45K for it, and while not unreasonable, it's just a little more than I think I want to spend. Quote Link to comment Share on other sites More sharing options...
RX in NC Posted August 26, 2005 Share Posted August 26, 2005 Financially, there's no question that you made the correct decision. From a depreciation perspective alone, that vehicle is way overpriced at $45,000. Stay in touch with your buddy and let us know how much he actually gets for it when he finally unloads it to someone else. Quote Link to comment Share on other sites More sharing options...
katzjamr Posted August 26, 2005 Share Posted August 26, 2005 For what its worth i just picked up the phone and called my salesman at Lexus. He said they would put this vehicle on the lot at only 2000 under msrp, they have three vehicles nearly new on the lot now with under 10K in miles (not 400h's) and all are selling at only 2 to 3K under list. Im sure there is some bargaining room there, however 45K could be fair as much as i would like to see it cheaper. Make him an offer and let him see if he can sell it for more, it could be urs if no one bites. Quote Link to comment Share on other sites More sharing options...
uthorns1976 Posted August 26, 2005 Share Posted August 26, 2005 For what its worth i just picked up the phone and called my salesman at Lexus. He said they would put this vehicle on the lot at only 2000 under msrp, they have three vehicles nearly new on the lot now with under 10K in miles (not 400h's) and all are selling at only 2 to 3K under list. Im sure there is some bargaining room there, however 45K could be fair as much as i would like to see it cheaper. Make him an offer and let him see if he can sell it for more, it could be urs if no one bites. ← I agree with katz. $45K isn't too bad for a $51,000 vehicle that's basically new. However, when you add the 6.25% sales tax that the buyer has to pay when registering the vehicle, that really throws a monkey wrench into the deal. Quote Link to comment Share on other sites More sharing options...
msrc2 Posted August 26, 2005 Share Posted August 26, 2005 There's one for sale (used, private party) in todays Atlanta Journal Constitution. Level 1, 500 miles. $48,000. Quote Link to comment Share on other sites More sharing options...
bartkat Posted August 27, 2005 Share Posted August 27, 2005 Three RX400H for sale used within 300 miles of me on Auto Trader $52,500 Highest price $47,500 Lowest price Quote Link to comment Share on other sites More sharing options...
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